An Auditor for the Georgia Lottery is Accused of Accepting Bribes
Georgia Lottery officials are reportedly prioritizing bribery over adhering to state regulations, claims the Georgia Bureau of Investigation (GBI).
This week, GBI agents conducted a raid on the property of Michael Jerome Kessler Sr., a lottery compliance inspector. Kessler was charged for accepting bribes from multiple stores in Henry County, Georgia, in exchange for approving their operations during official lottery inspections.
Kessler allegedly demanded that a minimum of three establishments with coin-operated amusement machines (COAMs) pay him $2,000 each.
About COAMs
Georgia is known for its strict stance on gambling. There are no commercial or tribal casinos allowed, and parimutuel betting is illegal. However, in 1991, the state legislature legalized "skill-based games" in convenience stores, gas stations, and truck stops. These are video poker-style machines, where prize winnings are limited to non-cash goods.
These are classified as "Class B COAMs," as opposed to "Class A COAMs," which include classical amusement machines such as claw games and pinball.
The Class B COAMs were practically unregulated, making it simple for their hosts to manipulate the rules by offering cash payouts.
In 2013, a new law was passed to establish a licensing and oversight system for the machines. The Georgia Lottery Commission (GLC) was placed in charge of monitoring the terminals and guaranteeing that licensees followed the rules.
However, cash payouts are extensively prevalent as venues offering them are more popular with players, escalating each machine's profit. This might create a situation where a biased regulatory authority could earn money by pretending not to notice cash payouts.
Integrity is Crucial
State Senator Emanuel Jones, who sits on the Georgia Lottery Commission and resides in Henry County, remarked this week, "Integrity is the foundation of the lottery's mission."
Jones added, "We are dealing with people betting on machines across the state or any other activities we permit in Georgia, and we don't want criminal elements to infiltrate."
According to a GLC spokesperson, "Employees are held to the highest standards to ensure that we accomplish our critical mission of maximizing revenue for HOPE and Pre-K."
The law enacted in 2013 denotes that COAM distributors and the establishments that host them each receive 45% of the profits, with the remaining 10% reserved for the state, which is distributed to Georgia's HOPE Scholarship and Pre-K schemes.
Out of the $3 billion spent on Class B COAMs last year, $2.1 billion was returned to players. The state's share of the remaining $900 million was $90 million, some legislators argue, is not sufficient.
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Source: www.casino.org
