Curtis and Marie Bennett - Page 4




                                        - 4 -                                         
               Gross proceeds from the above lotteries, after certain                 
          “instant” payoffs were distributed to players, were deposited and           
          maintained in a separate bank account owned by Lucky.  Large                
          payoffs to players were paid out by Lucky after the lottery                 
          proceeds had been deposited into the bank account.  For the Keno            
          lotteries held in 1995 and 1996, total payoffs to players                   
          exceeded $2 million.                                                        
               After obtaining the nonassignable right to establish Keno              
          lotteries, Lucky entered into contracts with various site                   
          organizations (e.g., Eagles Lodges and Koala Clubs) relating to             
          the lotteries to be established within certain municipalities on            
          property owned by the site organizations.  Under these contracts,           
          Lucky agreed to provide all equipment, materials, and supplies              
          needed for operation of the Keno lotteries, to provide the                  
          appropriate training, and to pay the site organizations a fee of            
          6 percent of Lucky’s 14-percent share of the lottery proceeds.              
               The site organizations agreed to provide some personnel to             
          assist in operation of the lotteries, to provide Lucky with daily           
          reports of the lotteries, and to obtain liability and property              
          insurance relating to the lotteries.                                        
               All of the equipment, materials, and supplies provided by              
          Lucky that were used in the Keno lotteries remained the property            
          of Lucky, and brochures used to advertise the Keno lotteries                








Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011