A prominent Guam lawmaker has introduced a bill to ban gambling in the Internet cafes dotting the US Pacific island territory.
Casinos are illegal on Guam unless authorized by the governor as special events during official holidays—and voters have rejected initiatives to allow several casinos to open on the tourism-centric island—but cyber cafes are reported to be combining sweepstakes with casino-style gambling, and these are what the measure targets.
“Some very smart people are using 21st century technology to get around 20th century gambling laws,” said Benjamin Cruz, vice speaker of the legislature and the bill’s sponsor. “The loophole, which this new law intends to close, could allow thousands of gambling terminals to operate without any oversight, taxation or regulation.”
He said the cafes are running blackjack, keno, digital horseracing and slot machines as part of networks in which players acquire points that can be converted into cash-paying sweepstakes entries.
His measure would formally prohibit operation or possession of electronic machines or devices intended to be used for sweepstakes gambling and would make the devices subject to seizure. Owners, operators and promoters could face up to five years in prison and a US$250,000 fine per violation.
Mr Cruz has been crusading for years against the hundreds of gambling machines that operate in Guam in a legal gray area. It appears that no complete count of the devices exists, although an official audit has determined that only about 135 are operating without proper licensing with another 300 or so awaiting a court ruling on their status.
