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COLUMBUS - Legislation proposed by a local lawmaker Wednesday would regulate Internet cafes statewide by putting them under the oversight of the Ohio Gaming Commission, which could charge more than $25,000 a year for licensing fees.

State Sen. Joe Schiavoni, D-Canfield, on Wednesday proposed the legislation for Internet sweepstakes cafes that have popped up throughout the Mahoning Valley. There are an estimated 30 in the area.

The legislation would require an independent laboratory to inspect all gaming software used; require operators to be inspected, licensed and regulated; and require the operators to prominently display the odds of winning on the game terminals, among other regulations.

The 70-page bill also would allow local municipalities to create their own set of regulations and fees.

"The purpose of the bill isn't to shut these businesses down," Schiavoni said. "It's to regulate them like any other gaming facility. If Ohioans want to still go to these places as a form of entertainment and local municipalities decide they want to have them around, then let's continue to have them operate as long they follow the rules."

Schiavoni said he believes his bill will be more appealing to state legislators than a bill proposed in April by Reps. Nan Baker and Marlene Anielski that sought to eliminate cash prizes.

"That would kill their business," Schiavoni said. "If that was the case, they might as well just shut their doors."

That proposal stalled in the House. Schiavoni said he hopes his bill can be passed by the end of the summer.

Ohio Attorney General Mike DeWine, who worked with Schiavoni on the bill, has said he believes some Internet cafes constitute gambling. In Akron, he helped investigate an Internet cafe owner who eventually was sentenced 20 days in jail, and helped raid three Internet cafes in Warren last September. The seven owners and operators are facing gambling charges that could land them in jail for up to six months.

The difference between illegal establishments and legal ones, prosecutors say, is the amount of cash prizes a customer can win from playing the sweepstakes game offered by the businesses and if the games they provide are games of chance, rather than skill-based games.

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Internet cafe bill proposed