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I-Team Investigates Gambling At Internet Cafes

POSTED: 4:40 pm PDT June 12, 2009
UPDATED: 6:27 pm PDT June 12, 2009

The I-Team investigated local Internet cafes that seemed more like casinos then a place for small talk and coffee.

Visitors can play video poker, keno and slots on computer terminals, and I-Team researchers went undercover to check out the games.

Both researchers reported back that it seemed like a gambling establishment to them.

But the manager and consultant for Lucky Jolar’s Internet Café on University in the Rolando area both claimed it is not gambling.

"This is a sweepstakes, governed by sweepstakes rules in California," said consultant Peter Luster.

The manager, Sandy Ivanciw, said they sell Internet time. Visitors can also play the games, and she told the I-Team it is not gambling.

If you win money on the games, you get to keep it. If you lose money on the games, you still have your Internet time.

Viejas Casino's Robert Scheid said it didn't matter what it was called.

"It is illegal online gambling no matter how you dress it up," said Scheid.

The I-Team found out the computer terminals connected back to a company in Georgia. The I-Team called the company but they have not responded to the inquiry.

I-Team investigators also found another Internet café in Oceanside called Lucky Bob's Internet Café, and turned out to be the same scenario as Lucky Jolar's Internet Café.

But consultant Luster said he doesn’t know anything about Lucky Bob's nor does he know who owns Lucky Jolar's.

The I-Team learned that Luster is a manager of an East County adult store with the son of Harry Mohney, who owns the Déjà Vu Strip Club chain.

Mohney is a partner of Larry Flynt, of the Hustler porn empire, including the Hustler Casino in Los Angles. I-Team cameras did see a large cocktail table with "Larry Flynt's Hustler Casino" in bold print, sitting inside of Jolar's Café.

Does that make Flynt or Mohney the owners of these Internet cafes?

The California Attorney General's Office had undercover gaming inspectors inside the cafes and they were of the opinion that the cafes were set up for gambling, not selling Internet time.

The San Diego District Attorney's Office is now looking into the case.

The I-Team talked to some sources familiar with the operations of the cafes, and they said their small size doesn't do justice to the amount of money these places are making.

According to one source, some players have lost upwards of $40,000.

The I-Team also learned that of the 25 machines in Lucky Jolar's only a few connect to Yahoo.com where many users have their Internet mail.

And a strip club next door to Lucky Jolar's provides a large client base for the club.
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