Backers of a referendum to stop a law that would effectively eliminate Internet sweepstakes cafes will need to collect more signatures on petitions if they are to get their issue before voters.
Secretary of State Jon Husted today certified that petitioners fell more than 71,000 signatures short of the total number of valid signatures required by law. Additionally, they did not meet a requirement that they collect a certain portion of those in at least 44 different counties.
Husted’s decision starts the clock ticking on a 10-day deadline. If the issue is to appear on the ballot in November 2014, the group will have to submit the needed signatures by Oct. 3 to the secretary of state. Otherwise, the referendum effort will fail and the law, which was put on hold by the referendum attempt, will take effect.
In an interview, Matt Dole, a spokesman for the petitioners, said the group will start collecting immediately and expects to meet the requirements. It recognizes, though, that it isn’t just a numbers issue. Signatures will have to be collected from more than 30 counties across the state.
This referendum effort is also the first since the General Assembly tightened up the requirements for curing the petitions if the number of valid signatures falls short. Previously, petitioners could have continued to collect signatures while those in the initial filing were verified. Under the new law, no more names could be collected until the secretary of state announces results of the initial review.
But the group has volunteers and paid petition circulators ready to go, Dole said. And in a statement, he noted the need to cure the petitions is not unusual.
“Tomorrow, hundred of workers will begin gathering signatures to protect the thousands of Ohio jobs in the Internet Sweepstakes Cafe industry,” Dole said. “Nearly every statewide initiative in Ohio falls short of the signatures necessary on the first try, which is exactly why the law allows a ten-day period to gather more.”
Dole also cited polling data which he said works to the petitioners’ advantage.
“Luckily, since polling shows 80 percent of Ohioans oppose banning Internet Sweepstakes Cafes, there are many people willing to sign,” Dole said.
That figure is drawn from polling conducted earlier this year by Fallon Research.
Critics of the Internet cafe industry, including Attorney General Mike DeWine, targeted it as an unlawful front for illegal gambling and other serious crime, such as human trafficking and money laundering.
After Husted’s announcement, Ohioans Against Illegal Gambling, a casino backed opposition group, was quick to respond.
“HB 7 passed both chambers of the General Assembly with large bi-partisan votes. Attorney General Mike DeWine, county prosecutors and local police all have voiced serious concerns about the criminal activity occurring at many Internet cafés,” said Carlo LoParo, a spokesman for the organization. “Ohioans are now 10 days closer to ridding our state of these criminal enterprises.”
Proponents of the Internet cafes have argued that they are legal and important to communities because they provide jobs.
Customers can obtain access to electronic sweepstakes gaming machines by buying cell phone minutes and computer time on the Internet. The electronic sweepstakes machines offer a chance at cash prizes.
The General Assembly passed the law in June. It barred cash prizes from electronic terminals and limited the value of prizes to $10. DeWine supported that legislation, which Gov. John Kasich signed June 4.
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