In Late 2012, Thomas Lacey opened Net Stop café in San Francisco’s Excelsior District. Net Stop allowed customers to play online slots to acquire points that could be exchanged for cash. Figure 8 Technologies Inc., who has no direct relationship with Net Stop, acquired the technology the café used for their online slots.
Due to the increase in crime in the Excelsior District since the opening of Net Stop, the city sued Net Stop, citing them as a “public nuisance.” Since the café opened, crime in the Excelsior District increased from 2 occurrences the year prior to 202 a year after opening.
While founder Thomas Lacey admits no wrongdoing, and stated that he was in full compliance with all online gambling rules and regulations, he was ordered to close his café within 60 days.
On top of that, Lacey may not open a similar business in San Francisco for the next 5 years.
As well, Figure 8 must pay the city $25,000 in fines, must deactivate their software within California, and may not sell or provide similar online gambling or online slots software in California for the next 5 years.
Excelsior residents and business owners consider this to be a big win for the city and the crime rate is expected to decline as soon as Net Stop’s doors are closed for good.
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