Gaming rooms dodge bullet

A prosecutor thinks owning a sweepstakes room constitutes running an illegal gambling operation, but he failed to convince six Marion County jurors Monday.

After deliberating for less than an hour, they returned with a not guilty verdict for a 45-year-old woman accused of running an unlawful slot machine business.

It was a critical outcome in a long-standing battle between sweepstakes cafe owners and the 5th Circuit State Attorney's Office.

Attorneys for the defendant argued she was innocent because she was offering prizes to induce customers to use her printing and faxing services.

"It's not against the law," said defense attorney Kelly Mathis, who represents multiple clients involved in the sweepstakes business.

It wasn't the first time an Ocala prosecutor took aim at a sweepstakes room owner and misfired. A judge threw out a case in the middle of a trial last December.

"I wonder how much more tax money they're going to throw at this only to have a judge or jury tell them they're wrong," said Mathis.

Mathis also said the prosecutor in the case, Mark Simpson, made few changes to his prosecutorial strategy since the last time he went to trial.

"During the first trial, the judge dismissed it because there was no evidence," said Mathis. "Last week was a very similar case, almost identical. The jury came back in less than an hour."

Monday's acquittal could impact the ongoing gambling investigations in Hernando County, where sweepstakes rooms - also known as Internet cafes or gaming rooms - remain a burgeoning business. At least 14 known gaming rooms operate throughout Brooksville and Spring Hill.

Authorities were poised last summer to conduct a multi-jurisdictional raid on the businesses throughout Hernando, Citrus and Sumter counties, but the operation was halted for reasons not disclosed by the State Attorney's Office.

Law enforcement opted to wait and see what would happen with the trial in Ocala, sources said.
"We do not comment on other agencies' cases," said Sgt. Donna Black, a spokeswoman with the Hernando County Sheriff's Office. "Additionally, we do not comment on ongoing cases."

At least one criminal trial is still on schedule for December in Marion County.

The defendant in that case, Jeffrey Reed, was the same man who went on trial in December 2009 when the judge halted the trial because of a lack of evidence.

Simpson reassessed and went forward with a new strategy last week in the trial for Jeaneen Crisante, who owned Marion Internet Services.

Simpson called upon an expert witness from New Jersey who testified the machines used by Crisante were slot machines.

Simpson did not return a message seeking comment Tuesday.

Mathis represented Crisante and also is the attorney for Allied Veterans, which owns two gaming rooms in Spring Hill.

He faulted Simpson for bringing an out-of-state witness and expecting a jury to be swayed.

"To him, everything's a slot machine, including a computer. The jury didn't buy that," said Mathis. "That was the best he could get."

The defense, in turn, called upon a witness from the Florida Department of Agriculture and Consumer Services, who testified under oath that Crisante's business was perfectly legal under state law, Mathis said.

The Ocala Star-Banner reported Monday the courtroom erupted into applause and cheers after the not guilty verdict was read.

Crisante, 45, was charged with operating a gambling house, a third-degree felony, and possessing slot machines, a second-degree felony.

The business, according to the article, sold phone cards along with printing and faxing services, using electronic sweepstakes to promote those services.

Florida imposes strict regulations for gambling, but sweepstakes rooms have avoided such regulations because they follow the state law that allows fast food and soda companies to offer cash prizes with no purchase necessary, Mathis said.

Simpson has rejected that comparison.

Bill Pfeiffer, an attorney for Tel-Connect, the company that contracts with gaming rooms to provide phone and Internet time, said the average sweepstakes customer pays $18 per visit.

He thinks comparing those businesses with the Seminole Hard Rock Hotel and Casino isn't credible.
"They're light years apart," Pfeiffer said.

He also said people are paying for services they need and small businesses are simply trying their best to compete against the large chains.

"We're selling a legitimate product people are using," said Pfeiffer. "The Legislature has made it clear small retailers should be able to compete with the big guys. Hosting game promotions are a way to increase the sale of these products."

Simpson told the Star-Banner after the verdict he remains undaunted in his crusade against gaming rooms, saying he is in it "for the long haul."

He isn't going at it alone.

Representatives with the Florida Council on Compulsive Gambling out of Altamonte Springs have spoken out against the recent spurt in the number of gaming rooms. They say their hotlines are being flooded with calls from people who have gambled away their savings because of their frequent visits to sweepstakes cafes.

Greg Giordano, a spokesman for State Sen. Mike Fasano, R-New Port Richey, said his boss will go forward with a bill early next year that would require gaming room businesses to pay a bond for rewards of $1 or more.

The current threshold is $5,000.

Giordano said several gaming room owners offer rewards exceeding $5,000, but don't pay the fee because the state has difficulty enforcing the current law.

A $1 requirement would make that easier, he said.

"The bill, if it passes, would put a stop to most of these gaming rooms," Giordano said.

Pfeiffer, meanwhile, said he supports Fasano's quest to adjust the regulations. He believes there are some businesses that don't operate ethically.

"There's no doubt there are some out there who abuse (the law)," he said. "We advocate tighter guidelines."