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Counties Work To Ban "Internet Cafes"

SEMINOLE COUNTY, Fla.,None — 9 Investigates has been looking into Internet cafes for years and Seminole County is leading the fight to ban them.

There is serious money to be made off the centers, about half-a-million-dollars a year. That's what a 2009 tax return says the "National Commander" was paid.

The fact that the center was in operation Monday night is something Seminole County is pushing to change.

With about 60 locations in the southeast, mostly in Florida, the tax-exempt Allied Veterans Internet Café, which is a non-profit, claims helping veterans is its mission.

"I think it's wrong. It's a disgrace," said veteran Bernard Brosam.

For Brosam, who fought in Afghanistan, even using the "veterans" name is offensive. He bristled more at the salaries.

The National Commander of Allied Veterans Johnny Duncan profited $505,000 off the "non-profit." That's more than Gail McGovern, who is head of the National Red Cross, and well more than the median pay for big non-profits nationally.

Seminole County is in federal court fighting to close the Internet sweepstakes centers by outlawing their simulated gambling machines.

Allied Veterans always says its "sweepstakes" is just like the one on the top of a soda bottle. You're paying for the soda, or in their case, the Internet time, but with that purchase is a chance to win big.

Allied Veterans hasn't revealed its total revenue. But the group claims it gave away one- million-and-a-half dollars in 2009, some in hundred thousand dollar donations and more in smaller sums such as $22,000 to Winter Springs High School.

All donations are left over after the group covers high costs for salaries, rented strip mall space, computers and all those sweepstakes payouts.

Allied Veterans provided WFTV with the documents it requested. WFTV talked to one of the recipients on the group's donation list who confirmed he had, in fact, gotten money.

It seems even the federal court is having trouble with the legality.

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