753.05 INTERNET GAME CAFES AND SWEEPSTAKES BUSINESSES.
(a) Definitions:
(1) “Internet Game Café” means any business, establishment, room or place where entertainment devices are kept for use by the public or by persons other than the owner of the devices, where persons give anything of value to access the use of the entertainment devices or the premises, and the person may be given anything of value by the operator whether the giving occurs on or off the premises or at the same or a later time.
(2) “Entertainment Device” means any mechanical, electronic, video or digital device that is capable of accepting anything of value, directly or indirectly, from or on behalf of a person, for the purpose of playing a game, viewing a video display, hearing an audio transmission or reading entries or outcomes from any other kind of device. "Entertainment device" does not include any vending maching, juke box, audio book, video player or any device that gives anything of value where the only value given, directly or indirectly, is a video or audio transmission or the playing of a game.
(3) “Anything of Value” means any cash, cash equivalents, tangible objects, credits to play, sweepstakes entry points and any tangibles, no matter how slight. “Anything of value” includes playing a game, viewing a video display, hearing an audio transmission, and reading entries or outcomes from any other kind of device. A person who gives anything of value for a product or service, whether tangible or intangible, in any way, directly or indirectly, in association with being given access to the use of an entertainment device, is deemed to have given value for the access to the entertainment device.
(4) “Sweepstakes Business” means any privately owned business operating in the City of Youngstown where adults may purchase a product for value that enters the adult into a lottery with a predetermined winner or in which skill does not determine the winner, or any other Schemes of Chance. The purchase of the product gives the adult credits to play computer based games necessary to win the lottery. The number of credits provided by the purchase is directly correlated to the value of the purchase. A business which provides the opportunity to play a machine/computer based game for the purpose of discovering lottery results is also a sweepstakes business, even if the purchase of a product does not require participation in the computer game for entry to win.
(5) “Owner” or “Operator” means the person or business entity that owns or leases premises to operate an internet game cafe or sweepstakes business on those premises and receives any or all profits from the business.
(6) “Principals in a Business Venture” include all partners, officers, and major shareholders.
(7) “On-Site Manager” means the person in charge of operating and carrying out the day to day management of an internet game cafe or sweepstakes business at the permitted location.
(b) Licensing and Fees. Any owner or operator of an Internet Game Cafe or Sweepstakes Business shall annually apply for a permit to operate within the City. If the business or cafe contains fewer than 4 machines and/or computers, then the operator shall apply for a permit for each public machine and/or computer in the amount of $250 per device. Should the business or cafe contain four or more machines and/or computers, but fewer than 100 machines and/or computers, then the owner shall pay $4,000 annually for a permit to operate as an Internet Game Cafe or Sweepstakes Business. If the business or cafe contains more than 100 machines and/or computers, the owner or operator shall pay $6,000 annually for a permit to operate as an Internet Game Café or Sweepstakes Business.
Every Internet Game Cafe or Sweepstakes Business shall pay a semiannual tax of $25 per machine and/or computer payable on the first Monday of January and the first Monday of July every year. Should the business cease to operate, the tax will be prorated for the period that the machines and/ or computers were in use.
(c) Contents of Application. Each owner or operator shall include with the application an affidavit stating whether he/she is a sole proprietor, a partnership, corporation or other joint venture and listing the names of all principals in the business venture.
Each Applicant shall include with the application an affidavit certifying that the specific games which will be operated by the applicant as part of a sweepstakes business or internet cafe are not slot machines or other illegal games of chance.
Each applicant shall include with the application a certification from the State of Ohio or an authorized testing agency which indicates that the specific games which will be operated by the applicant as part of a Sweepstakes Business or Internet Game Café are legal to operate in the State of Ohio and are not slot machines or other Games of Chance should the State of Ohio offer a procedure to obtain such certification.
Each Applicant, and in the case of a partnership, corporation or other business venture in which two or more parties are principals, all principals shall be required to submit to a background check to verify that he/she is not a person prohibited from being issued a permit under this section. If the Applicant is not the actual on-site manager of the internet cafe for which the permit is issued, then the manager of such cafe shall be required to submit to a background check as well.
The cost of background checks required herein is to be paid by the Applicant.
Each applicant shall be required to list all machines and/or computers being operated or to be operated by the applicant, such list to include the following information:
(1) The make, model and serial number of each machine and/or computer operated or to operate as a skill based game or scheme of chance;
(2) The hardware and/or circuit board switch settings for each machine and/or computer operated or to operate as a skill based game or scheme of chance;
(3) The software setting of each such machine and/or computer; and
(4) A copy of each manual for any such machine and/ or computer operated or to operate as a skill based game or scheme of chance.
Each permit holder shall, within ten (10) days of any change with regard to paragraphs (1) through (4) above, be required to notify the City in writing of any such change and the date of such change.
(d) Prohibited Persons and Revocation of Permit. None of the following persons or entities shall be eligible to hold a permit or to manage or operate an Internet Game Cafe or Sweepstakes Business pursuant to subsection (b) hereof:
(1) A person convicted of a felony pursuant to the laws of this State, any other state, or the United States.
(2) A person convicted of any crime involving fraud, dishonesty, or moral turpitude, pursuant to the laws of this State, any other State, or the United States.
(3) A person who has been convicted of a gambling offense under Chapter 2915 of the Ohio Revised Code, Chapter 517 of the Codified Ordinances of the City of Youngstown, or any substantially similar law of any other state or the United States.
(4) A person who has been convicted of any violation of this section.
(5) A person who has been a defendant party to a nuisance abatement action pursuant to Chapter 3767 of the Ohio Revised Code.
(6) Any corporation, partnership or other legal entity or organization that has been convicted of any of the offenses set forth in paragraphs (1) through (5) above.
In the event that any person or entity that has been granted a permit pursuant to subsection (b) hereof becomes ineligible to hold such a permit due to a conviction for any of the offenses set forth in paragraphs (1) through (6) above, that permit shall result in immediate revocation of the permit holder's permit as of the date of conviction. Continued operation of an Internet Game Cafe or Sweepstakes Business shall constitute a nuisance that is subject to abatement pursuant to Chapter 3767 of the Ohio Revised Code, in addition to any other remedies at the disposal of the City of Youngstown.
(e) Inspection. Each permit holder is subject to inspection by the Vice Department of the Youngstown City Police Department during normal business hours to ensure the permit holder's compliance with the provision of this chapter, Chapter 517 of the City of Youngstown Codified Ordinances, and Chapter 2915 of the Ohio Revised Code. Failure of the permit holder to allow the Vice Department of the Youngstown City Police to inspect during normal business hours shall result in immediate revocation of the permit holder's permit.
(f) Adults Only. No person shall permit anyone under eighteen years of age to enter upon the premises, play, engage in or operate any machine and/or computer, unless accompanied by a parent or legal guardian thereof.
(g) Location Restrictions. Each Internet Game Cafe or Sweepstakes Business shall comply with all zoning and land use ordinances, requirements, codes and regulations of the City of Youngstown.
(h) State Law. The issuance of a license under this section is not intended to indicate that the actions of the licenseholder are or will be deemed in compliance with the laws of the State of Ohio or insulate the licenseholder from prosecution thereunder. In the event the State of Ohio passes legislation outlawing the possession or use of any of the devices or the business operations permitted hereunder, the permit issued is subject to immediate revocation.
(i) Prohibited Operation.
(1) No person shall operate a business as an Internet Game Café or Sweepstakes Business without a license issued pursuant to this section or in violation of this section. This section is intended to impose strict liability. Lack of knowledge or intent is not a defense to a violation hereof.
(2) No person, being the owner or lessee, or having custody, control, or supervision of premises, shall recklessly permit such premises to be used or occupied for an unlicensed Internet Game Cafe or Sweepstakes Business.
(3) No person, being the owner or lessee, or having custody, control, or supervision, of a hotel, restaurant, tavern, store, arena, hall, or other place of public accommodation, business, amusement, or resort shall recklessly permit those premises to be used or occupied for an unlicensed Internet Game Cafe or Sweepstakes Business.
(4) No person shall violate any other provision of this section. This section is intended to impose strict liability. Lack of knowledge or intent is not a defense to a violation hereof.
(5) The issuance of this license is not intended to reflect any determination by the City of Youngstown that the machines or computers taxed hereunder are or are not considered gambling devices under State Law.
(6) The City shall not be liable to any license holder on any theory that the licensee relied upon the issuance of a license pursuant to this section as certifying that their operations or games, machines or computers comply with state gambling laws.
(j) Penalty. Any violation of this section is a misdemeanor of the first degree. Each and every day the business operates without a license issued pursuant to this section shall constitute a separate offense.
(Ord. 11-130. Passed 4-20-11.)