Florida Bans Internet Cafés

Scandal led to resignation of state's lieutenant governor

Florida Governor Rick Scott signed legislation last month prohibiting the storefront gaming halls known as internet cafés. By the end of the week, a number of the cafés had already taken down their shingles and locked their doors.

For a long time, Scott and other state lawmakers did not take decisive action on the cafés, which offer sweepstakes-style online games for cash and prizes. Now, in the aftermath of an alleged multimillion-dollar scam involving a veterans’ charity, the politicians are racing to close the unregulated businesses.

Federal investigators say a group called Allied Veterans of the World, which ran 49 of the state’s approximately 1,000 cafés, claimed to be giving 70 percent of revenues to veterans’ aid. In fact, say the feds, the group only contributed about 2 percent of an estimated $300 million, and pocketed the rest.

The charity scam, which was uncovered in a multi-state sting known as Operation Reveal the Deal, forced the resignation of former Lieutenant Governor Jennifer Carroll, who once did public relations work for Allied Veterans.