Laserfiche WebLink
LS 10.16.18 <br />ORDINANCE NO. NS -2956 <br />AN EMERGENCY ORDINANCE OF THE CITY OF SANTA <br />ANA ADOPTING A 45 -DAY TEMPORARY MORATORIUM <br />ON THE APPROVAL, COMMENCEMENT, <br />ESTABLISHMENT, OPERATION, RELOCATION OR <br />EXPANSION OF CYBER CAFES AND INTERNET ACCESS <br />BUSINESSES WITHIN THE CITY <br />THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS <br />FOLLOWS: <br />Section 1. The City Council of Santa Ana hereby finds, determines and <br />declares as follows: <br />A. As in other cities in California, there has been a proliferation of cyber cafes <br />and internet access businesses in the City of Santa Ana. Customers <br />purchase phone time in exchange for opportunities to win chances at <br />internet/network based sweepstakes prizes and money. <br />B. These types of businesses purport to sell phone time or time on computers <br />connected to the internet. However, these businesses also provide customers <br />with sweepstakes entries or credits that are usually worth one cent per credit. <br />The amount of the credits received is usually based on the phone time or <br />computer time purchased, although sometimes credits may be provided free <br />of charge. The customer has the option to select several gambling themed <br />games on the computers to see if they have won additional credits. <br />Customers who win additional credits can cash in any winning, or use the <br />credits revealed on the computer to attempt to win additional credits. <br />Frequently, these games have the same/similar appearance as Las Vegas <br />style games of chance, such as slot machines and keno. <br />C. The State Bureau of Gambling Control has issued a law enforcement <br />advisory in which it determined that in some circumstances the sweepstakes <br />aspect of these businesses constitutes illegal gambling. Following this <br />advisory, there have been numerous raids of these businesses that act as <br />fronts for illegal gambling throughout California. <br />D. It is not always clear under state law whether a particular cyber cafe and <br />internet access business is engaged in illegal gambling and/or unlawful <br />promotional sweepstakes. <br />E. Even where cyber cafes and internet access businesses utilize lawful <br />sweepstakes features, these businesses have created adverse impacts on <br />public health, safety and welfare, including a dramatic increase in crime <br />Ordinance No. NS -2956 <br />Page 1 of 6 <br />