Marysville City Council has approved legislation instituting a moratorium on adult gaming-parlor businesses, including so-called Internet cafe operations.
Council members rushed through the legislation during their Dec. 15 meeting to address concerns about adult gaming parlors moving into the city.
Mayor John Gore proposed an emergency ordinance establishing a temporary, 180-day moratorium on “the acceptance and processing of applications for zoning, occupancy and/or building permit approvals for any adult gaming parlors, Internet cafe, Internet sweepstakes cafe or any other facility containing sweepstake terminal devices.”
Calls from companies requesting information about zoning procedures and the Marysville’s licensing procedures prompted the mayor and the city administrator to take action quickly.
Gore expressed frustration that the state of Ohio had not addressed legal issues allowing these types of businesses.
“This has been on the plate of the new attorney general since he took office,” Gore said. “It’s a little bit of a loophole that allows them to operate in borderline gambling. And for some reason, the attorney general’s office hasn’t been able to close the loophole.”
Gore said he sent a message to Ohio Attorney General Mike DeWine saying that he needs to close the loophole in these types of Internet cafes.
“His advice back to me was, ‘you need to do something locally because we still aren’t able to determine what all this means. We plan on closing it. We’ve referred it to the casino commission but you need to take care of it locally.’”
Gore presented research to council showing several Ohio cities. Including Columbus and Cleveland, have taken the same type of action in placing a moratorium on such businesses.
“We presently believe there are four (Internet gaming cafes) in town,” Gore said. “There’s a fifth that has inquired and as recently as Wednesday, someone from Atlanta, Ga., called and wanted to know what our zoning was relating to Internet cafes.
“We can’t impact the ones that are presently operating,” he said. “What we can impact is to not allow anyone else to open one up in the next 180 days until we determine exactly what it all means.”
Council member Henk Berbee said he visited some of the businesses in town to look into the matter.
“The one thing I did see, they were all adults, the same type of people you would see at the VFW to play Bingo, the same people at the Catholic Church,” Berbee said.
Council president Nevin Taylor pointed out the differences.
“You can’t put VFW or the Elks or the Eagles or the Moose in the same sentence as an Internet cafe,” Taylor said. “They put back into their communities where they get their income from. Internet cafes make the individual rich. The money generated in there is not staying in Marysville.”
Berbee asked Police Chief Floyd Golden if there had been any complaints filed against the businesses. Golden said he was unaware of any.
Berbee and council member Tracy Richardson both expressed concern that residents had not had an opportunity to speak out on the issue.
“I’m still weighing in on the issue of not letting the public weigh in on it because it is obviously something the public is patronizing,” Richardson said. “I certainly would have loved to have more time to consider this. But I hear that there’s no way to prevent Internet cafe companies from showing up here overnight, essentially — not one month or three months — without some sort of legislation.”
Councilwoman Deborah Groat said the 180 days can be useful.
“Six months of a moratorium would become six months of public forum, with the understanding that anybody is welcome to come and speak,” she said. “I think a six-month moratorium would allow a more thoughtful public discussion on this issue.”
Councilman Mark Reams also expressed frustration with the lack of action taken on the state level.
“Mike DeWine had a press conference nine months ago saying he didn’t want Ohio to become the wild, wild West and nothing’s happened,” Reams said.
Reams asked Gore if there was any indication that DeWine’s office was making progress.
“The answer to you is no,” Gore said. “I’ve heard this stuff for six or eight months. I think this legislation gives us a six-month period to put our rules and regulations in place for anyone who opens in the future. I think we’re going to have to police it ourselves.”
City administrator Terry Emery said Marysville is not stopping the existing establishments but is taking action for what could be down the road.
“They (gaming businesses) are not going to the cities with regulations,” Emery said. “They’re going to the city that has nothing. What’s ultimately going to happen is, we’re going to be inundated with these types of businesses if we don’t do something quick. That’s why we’re bringing this legislation forward now.”
Taylor said the future is a concern.
“I’m very leery,” he said. “I know when an organization buys a bingo license, they pay a fee that’s close to $3,000. For an Internet cafe, it’s $100 to $500. There’s a discrepancy. (In) one, the money leaves completely; one reinvests in the community. I think giving us six months to step back and come up with a real procedure for operation is not a bad idea.”
He also cited the need to rush the legislation through because an Internet cafe can be established within two to three days.
Council voted 6-1 to pass the emergency section of the legislation with Berbee casting the lone no vote.
The vote was the same to waive the second reading but council then unanimously approved waiving the third reading and approved final passage of the legislation.
Taylor said he was sending the issue to the public affairs committee immediately.
Gore said he hopes that in the next 180 days, the state closes the loopholes and addresses the situation but the city may need to put its own regulations in place.
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