The Kentucky Horse Racing & Gaming’s (KHRG) Office of Charitable Gaming is aware of multiple instances of illegal “fishing” activities impacting electronic pulltab devices throughout Kentucky, resulting in the theft of tens of thousands of dollars.
Fishing takes a significant amount of time, in some cases hours, and involves inserting and then pulling currency back out of a gaming machine using plastic lines. This process tricks the machine into thinking more money has been deposited than is the case. The person engaged in the illegal activity is then able to cash out large sums of money without ever playing the game. This constitutes criminal activity and a diversion of funds from legitimate charitable purposes.
While those engaged in the fishing ultimately are responsible for this theft, organizations licensed by KHRG failed to appropriately prevent this criminal activity. Facility Licensees have shown an inability to prevent criminal activity and the diversion of funds from legitimate charitable purposes in violation of state law.
Charitable Organization Licensees have failed to properly supervise charitable gaming activities by failing to ensure a chairperson is present and in full charge of charitable gaming to ensure the proper receipt and recording of gaming funds.
Manufacturer Licensees have failed to provide electronic pulltab devices equipped with adequate security equipment and software to prevent theft, thereby negatively impacting device security, integrity, and the public confidence. KHRG is required, upon learning of a problem with an electronic pulltab system that affects the security or the integrity of the device, to direct all licensees to immediately cease the use of the affected devices until the game security is corrected.
Therefore, in the best interest of charitable gaming in Kentucky, and to protect the public and charitable organizations of the state, KHRG has ordered all machines manufactured by LNW Gaming, Inc. and Creative Game Technologies, LLC at locations other than a charitable organization’s office location, the location where a charitable organization is licensed to conduct bingo, and a location where pre-approved charitable fundraising events are authorized be disabled immediately.
The KHRG adds failure to immediately comply with their order will result in further disciplinary action.
By Tom Latek, Kentucky Today
