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At the coffeehouses, which served a variety of drinks and snacks, customers purchased sweepstakes entries, often loaded onto plastic cards with magnetic strips. Customers swiped the cards at computer terminals.
The company and Freels are scheduled to be sentenced on Nov. 5 by U.S. District Judge Morrison England Jr. Capital Sweepstakes faces a maximum 500,000 fine and five years on.
Many Internet sweepstakes cafes in Sacramento, West Sacramento and Stockton used Capital Sweepstakes computerized gaming equipment, according to prosecutors, who say the company also placed its equipment in other states.
As part of a parallel civil settlement with the California attorney generals office, Capital Sweepstakes agreed to cough up to the state an additional 700,000. According to federal court papers.

A Loomis-based corporation and its owner pleaded guilty Thursday in Sacramento federal court to conducting an illegal gambling business by providing computerized sweepstakes games that were once available in coffeehouses.
At the coffeehouses, which served a variety of drinks and snacks, customers purchased sweepstakes entries, often loaded onto plastic cards with magnetic strips. Customers swiped the cards at computer terminals.
The company and Freels are scheduled to be sentenced on Nov. 5 by U.S. District Judge Morrison England Jr. Capital Sweepstakes faces a maximum 500,000 fine and five years on.
The court ruled the results still amounted to chance. While the legal jousting was going on, the Legislature passed a law prohibiting the coffeehouse games, and Gov. Jerry Brown signed.
As part of a parallel civil settlement with the California attorney generals office, Capital Sweepstakes agreed to cough up to the state an additional 700,000. According to federal court papers.
The results were predetermined by the software. Customers could win cash prizes payable at the cafes. Capital Sweepstakes received a percentage of the profits. The Internet sweepstakes cafe slot machine graphics youtube us federal law online gambling apparatus argued.


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