- 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 lotteriesPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011