Two “Internet cafes” that were, in reality, online gambling parlors have agreed to pay a total of $750,000 to the state, the Massachusetts attorney general’s office said today.
The New England Internet Cafe in Fall River and The Ship in Lynnfield have already ceased doing business in the state.
In a typical cybercafe gambling operation, a patron pays for a card with points on it that gives them access to play video slot machines on dozens of computers. If they win, the patrons can redeem points accumulated for cash.
“Through today’s action, these cafes will return their illegal profits back to the Commonwealth and cease operating in the state,” Attorney General Martha Coakley said in a statement. “These so-called Internet cafes are illegal gambling operations with no protections for consumers, including no posted odds, minimum odds, or guarantee of payouts for patrons.”
The attorney general’s office said both operations used sweepstakes software distributed by Teradyne Systems Massachusetts LLC.
The use of such software violates state law, which says that “it is an unfair and deceptive act or practice ... for a person to solicit or accept payment for a chance to win a prize.” according to the attorney general’s office.
Under the agreement announced today, Teradyne will also terminate any existing licensing agreements for sweepstakes software in Massachusetts, and will not renew or enter new agreements. All other cafes that were using Teradyne’s sweepstakes software have also stopped operating, including Boston Road Cyber Café in Springfield, the attorney general’s office said.
Coakley’s office said the investigation into various Internet cafes remains active.
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