Charitable Gaming May Be Vulnerable to Fraud

Charitable Gaming May Be Vulnerable to Fraud

While Ohio lawmakers debate legalizing video slots at horse racetracks, other legal forms of gambling have been in place for quite some time. Charitable gaming in Ohio takes in big money, but is subject to very little regulation. In 2007, charitable gaming in Ohio grossed nearly $1.4 billion, more than half of the state’s lottery sales. However, Ohio employs only sixteen full-time officers to ensure that charities comply with state regulations. In addition, Ohio issues licenses only for bingo, instant bingo, and pull-tabs; raffles and “special gaming events” are left unregulated. This lack of oversight results in a situation where charitable organizations can be easily exposed to fraud. The most common source of fraud is “professional volunteers” who approach charities and offer to run gaming events, then skim money off the top. In one such scam in 2004 to 2005, four people were charged with stealing more than $250,000 from bingo conducted at a veteran’s organization.

/ Charitable Gaming