BAKERSFIELD, CA - Owners call it sweepstakes, but authorities call it illegal gambling that's happening inside local internet cafes. A Bakersfield woman said she's running her hair salon next to one and is encountering too many problems and losing business.
Inside Lucky Lady Internet Cafe, people spend hours playing games in an environment that looks similar to a casino.
But, these cafes have been under scrutiny with the city and law enforcement.
"While the city's position, much like that of the district attorney and the Bakersfield Police Department, is that these establishments are masquerading as legitimate sweepstakes, but in fact they're illegal Las Vegas-style gambling," said Thomas Geddes, Associate City Attorney.
But Joseph Caputo, owner of Lucky Lady Internet Cafe, said it's not gambling and that you earn points based on the games you play. But, with those points you can buy more time or switch it out for cash.
"Everybody has their own way of looking at things. If it was illegal, they would have shut it down already," said Caputo.
Scissorhands Salon and Boutique is next door to Lucky Lady.
Lynae Cummings said since the cafe opened three months ago, her business is taking a hit.
"We did have a lot more walk-ins coming in, looking at our products and buying things or maybe wanting a consultation that probably aren't coming in now because they don't feel comfortable," said Cummings.
Cummings said with the cafe next door, it attracts an unwelcoming crowd.
"We keep the doors locked now. We've had several instances where I've had to call the cops because we've been afraid," said Cummings.
Last May, a local judge ordered nine sweepstakes in the city to shut down, but five appealed.
"While they're waiting for an appeal that will clear up the gray area, whether this is legal or illegal, because as it is in California right now there's no particular law about internet gaming," said Geddes.
The City Attorney's Office said it doesn't know how long the appeals process will take.