CA Supremes To Sweepstakes Cafs Stop Before You Break The Law

SACRAMENTO, CA -- The California Supreme Court has dealt what many believe to be a deathblow to Internet sweepstakes in the Golden State. According to the high court's ruling, the computerized games are no different than slot machines, which are also illegal under California law.

In a unanimous decision handed down on June 25, the court ruled that electronic sweepstakes comprise gambling because customers cannot influence the outcome. Proponents of the games had argued that they differ from slot machines and other gambling devices because the results are not determined by the computer play, but rather are predetermined in much the same way as a lottery "scratch card." Consumers play the game to learn the outcome, they reasoned.

"When the user, by some means (here swiping a card or entering a number), causes the machine to operate, and then plays a game to learn the outcome, which is governed by chance, the user is playing a slot machine," wrote associate justice Ming Chin in the court's decision.

Sweepstakes advocates had hoped to successfully argue the gaming aspects only provided a look at a predetermined outcome, and the feeling of gambling was an illusion since the outcome and accompanying games were independent features of the device. And in that respect, they argued, the games are no different than vending machines that dispense lottery tickets.

The court's decision upholds two 2014 appellate court decisions, as well as a state law that bans video sweepstakes. It also clears the way for prosecution of five Internet cafés, which have since shut down. While the majority of Internet cafés in California have closed following those earlier legal decisions, a few have held out, hoping the court would rule in their favor.

CALIFORNIA'S SUPREMES:In a unanimous decision, California's Supreme Court has ended so-called Internet sweepstakes in the Golden State. Pictured abovet are the court's justices (standing l. to r.) Mariano-Florentino Cuéllar, Carol A. Corrigan, Goodwin H. Liu and Leondra R. Kruger; and (seated l. to r.) Kathryn M. Werdegar, Tani G. Cantil-Sakauye and Ming W. Chin. Cantil-Sakauye is the court's Chief Justice.