LANSING, Mich. – Michigan Attorney General Bill Schuette announced Monday the Alcohol & Gambling Enforcement Division has issued formal ‘cease and desist' letters to three "Internet sweepstakes cafes" operating in the state's mid-Michigan area.
The letters warned of possible legal action against the cafes if they refuse to halt ongoing gambling operations that violate state gaming laws.
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"Communities across Michigan are concerned about activities happening at many so-called ‘Internet sweepstakes cafes'," said Schuette. "If evidence of illegal gaming is uncovered at these cafes or elsewhere, we will with work with the Michigan State Police and the Michigan Gaming Control Board to shut them down."
The three Internet Sweepstakes Cafes, located in Holt, Flint and Lansing each sells Internet access for the chance to play computer-based casino-style games where customers can win cash prizes.
The operations are housed in buildings that contain banks of computers and some serve light fare, like pop and chips, to patrons.
Each purchase entitles the customer to a certain number of sweepstakes entries.
The customer is then given the opportunity to "reveal" whether the sweepstakes entries are winners by using a computer monitor that activates a spinning wheel similar to that of a casino-style video slot machine.
The Attorney General said that this type of activity violates the Michigan Gaming Control and Revenue Act.
The only gambling authorized under state law includes pari-mutuel horse racing, bingo, the state-sponsored lottery, certain charity events and casino gambling licensed under the Michigan Gaming Control and Revenue Act.