I don't understand the expression of surprise in the first part of the summary. The "cafes" referred to are set up specifically to skirt the state gambling laws by taking advantage of the "sweepstakes" loophole. They make it appear that you're playing video poker, roulette, etc. but you're really just revealing your sweepstakes winnings, which were predetermined when you bought into the game.
Bloomberg Businessweek had an interesting article on these things a few years ago.
... rather than at conventional Internet cafes.
I'm not sure what "conventional Internet cafes" refers to. The idea of the "Internet cafe" as a place where people go to buy time on the Internet died shortly after it was born in the late 90's. You can still go to Starbucks, Panera, etc. and use the Internet there; this bill isn't aimed at that.
This is not a big deal.