Ronald J. Lutz, Jr. and Paula M. Lutz - Page 3




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               In 1996, Ronald’s employment with Mega required him to work            
          60 to 80 hours per week.  In June 1996, Paula gave birth to                 
          petitioners’ third child.  Despite the demands of their                     
          respective obligations, however, petitioners found time in 1996             
          for a great deal of recreational gambling.  Two or three times a            
          week, they went to casinos together.  Once or twice a week, Paula           
          went to casinos without Ronald.                                             
               Petitioners gambled primarily at the following four casinos:           
          Casino Magic in Biloxi, Mississippi (Biloxi Casino Magic); Casino           
          Magic in Bay St. Louis, Mississippi (Bay St. Louis Casino Magic);           
          Bayou Caddy’s Jubilation Casino in Lakeshore, Mississippi                   
          (Jubilation Casino); and Boomtown Casino in Harvey, Louisiana               
          (Boomtown Casino).                                                          
               When petitioners visited a casino together, they usually               
          gambled in separate areas, until one of them ran out of money and           
          went and found the other.  Ronald favored table games; Paula                
          played both table games and slot machines.  Sometimes Paula would           
          gamble all day, into the wee hours.  During their gambling trips,           
          the casinos furnished petitioners, free of charge, meals, hotel             
          rooms, and such.                                                            
               When petitioners went to the casinos, they sometimes brought           
          substantial amounts of cash for gambling.  Sometimes they                   
          obtained cash at the casinos, either through a line of credit               
          with the casinos, or by cashing a check, using a credit card, or            






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