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Ex-Worker Details Gambling At Local Internet Cafes

POSTED: 12:18 pm PDT August 12, 2009
UPDATED: 1:48 pm PDT August 12, 2009

The 10News I-Team was able to get an inside look into gambling at Internet cafes with the help of a man who used to work at a local establishment.

Jack once worked at an Internet café near University and College avenues in San Diego.

"These people come in here and lose a lot of money," said Jack.

For two months, Jack worked at Internet café Lucky Jolar's. He said he was fired for asking too many questions about how the café's so-called sweepstakes worked.

"This isn't a sweepstakes. These people have no chance of winning; they're gambling," said Jack.

The I-Team visited Lucky Jolar's in June and looked into whether or not the café was more than a place to check e-mail.

The I-Team learned that customers pay for Internet time and receive a card that gives them access to games such as blackjack and Triple 7's. The winners receive cash; losers keep their Internet time.

Jack said, "The average person would spend about $60 to $70."

There is money to be made, but when the I-Team asked Lucky Jolar's management team about the operation, the group said it was not gambling.

"This is a sweepstakes governed by the sweepstakes laws of California," said Lucky Jolar's consultant Peter Luster.

Luster told the I-Team that the café was operating legally.

Within days of the I-Team's report, law enforcement officials cracked down on the Internet cafes. California Attorney General Jerry Brown called them "unregulated and illegal gambling parlors."

As a result of the crackdown, Lucky Bob's Internet Café in Oceanside was shut down, as were two other cafes in San Diego. When I-Team cameras showed up to a San Diego Internet café, the owners were seen moving out.

During San Diego police's Operation Jackpot, officers seized 31 video slot machines and $13,000 in cash.

The I-Team learned that Lucky Jolar's was also raided by police.

"Stay far away, because it's just a rip-off," said Jack.

I-Team reporter Mitch Blacher asked Las Vegas-based gaming consultant George Joseph, "Would you go gamble in one of these places?"

"No," replied Joseph.

Joseph said he doesn't trust Internet gambling because he said players never know who they are playing against or how many cards are in the deck.

"They're going to finally regulate it," said Joseph.

He said there are too many Internet cafes like the ones the I-Team investigated, and the industry is growing.

"It's impossible to shut it down. It's too big, too easy," said Joseph.

Internet cafes offering casino-style games are all over the U.S., including Northern California, Utah, Texas, Virginia and Florida.

Sources told the I-Team the computers behind the gambling are often in countries with no extradition to the U.S.
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