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Feb-02-2008 14:40printcomments

Record Number of Illegal Gambling Machines Seized in Lincoln County

Unlawful Possession of a Gambling Device is a class A misdemeanor.

Illegal gambling machines seized in Oregon, 2-2-08
Photos courtesy: Oregon State Police

(NEWPORT, Ore.) - Oregon State Police Lottery Security Section detectives in Lincoln County say an investigation has led to the seizure of 250 gambling devices, including 244 slot machines found Friday in a shop south of Newport.

Lottery Security Section detectives say this is the largest seizure of unlawful gambling devices in Oregon.

OSP Lottery Security Section Detective Cari Boyd and Sergeant Vern Fowler assisted Lincoln County Interagency Narcotics Team Thursday with a search warrant.

Officers located six gambling devices, also known as Pachislo machines, and seized them as evidence.

49-year ols Rhonda Newman was lodged in Lincoln County Jail on six counts of Unlawful Possession of a Gambling Device.

Detectives say that as the result of a follow-up investigation, the source of the unlawful slot machines was determined. Yesterday, Detective Boyd and Sergeant Fowler contacted 40-year old Fredrick Saxton III and determined Saxton had purchased the Pachislo machines from Japan in 2003.

Saxton consented to a search of his shop behind his residence at 9459 SE Cedar in South Beach where detectives found 244 unlawful Pachislo machines.

Detectives seized the machines and cited Saxton to appear in Lincoln County Circuit Court for 244 counts of Unlawful Possession of a Gambling Device.

Unlawful Possession of a Gambling Device (ORS 167.117) is a class A misdemeanor.

The mission of the Lottery Security Section is to ensure that all Lottery gaming activities are conducted in a fair, honest, and secure manner with the highest level of integrity, and in accordance with all statutes, Administrative Rules, Policies, and Management Directives.

They say the Department provides all security services necessary to ensure security, fairness, integrity, and honesty in the operation and administration of the Lottery, including but not limited to:

* Background investigations of all prospective employees, Lottery game retailers, Lottery vendors, and Lottery contractors;

* Detection and investigation of crimes against the Lottery;

* Enforcement of the State prohibition on gray machines;

* Consultation and recommendations regarding gambling issues and on-site security measures; and

* On-site security and surveillance of all Lottery premises.

Source: Oregon State Police

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Updater March 25, 2008 11:13 pm (Pacific time)

His attorney got the charges dropped by the District Attorney. The Oregon State Police kept the machines. Just like the Kim Pelett case.

ME February 19, 2008 5:45 pm (Pacific time)

One last thought, most of these machines state that they accept "$1," "$5," "$20," and even "$50." When was the last time you put $50 into a token machine?

ME February 19, 2008 5:40 pm (Pacific time)

One last thought, most of these machines state that they accept "$1," "$5," "$20," and even "$50." When was the last time you put $50 into a token machine?

Me February 19, 2008 5:12 pm (Pacific time)

Here is one article of someone capable of controling the amounts of wins and losses of a slot machine:

ME February 19, 2008 4:58 pm (Pacific time)

In response to "GET Real," Trust me these machines make lots of money. My job actually entails examining these types of illegal machines and using the examination results as part of the court room testimony. By the way, the courts love when the machines say "For Amusement Purposes Only" on them. I challenge you to find one slot machine in Vegas or Atlantic City that says that moto on them. This is because the manufacturers of the illegal machines believe that they are hiding the truth, but it doesn't work.

Get real February 19, 2008 4:22 pm (Pacific time)

The last comment is a real laugh. In actuality these machines generate an average of zero dollars per week. They are token machines, and I challenge you to find one vendor selling them for anything other than home entertainment purposes. Better yet, give me one example of these japanese pachislo machines being used for illegal gambling anywhere, in any state in the country. Hint: there isn't one example of that occuring. As for your "dip switch" theory, my son can set the difficulty level on his Playstation football game too. Big deal.

ME February 17, 2008 6:41 pm (Pacific time)

I would like to respond to: ron's comment on February 6, 2008 7:01 am (Pacific time) "It's pretty hard to start a casino with toys, John Doe. If these are token operated machines you would more accurately be opening a fun center like Chuck E. Cheese with them." These machines are not toys. Inside each illegal machine an extra circuit board is installed that manipulates the game by controlling the number of wins and losses. By one flip of a dip switch, these machines can be programmed to not allow any winners what so ever or maybe a few (to keep the gambler betting.) People do not realize this and millions are wasted yearly on these types of machines. What makes the games illegal is that there are no taxes claimed on these machines. Most machines rake in between $1000 to $3000 weekly. Imagine making that kind of money and never paying the IRS what is owed.

Betty February 10, 2008 8:59 am (Pacific time)

Anyone know what happened in court?

Kim Pelett February 8, 2008 5:46 pm (Pacific time)

Ron's correct, the state police protect vigorously any perceived threat however remote- as in the case of these machines - seen as a threat to lottery revenue. In our case, we bought the machines at a trade show,were told and our research showed they were legal in Oregon as they are in most states. Five officers, lights flashing came in our back door unannounced, read my manager his rights and -in full view of staff and customers- for three hours cataloged and seized our ten machines. Reminded me of hit men protecting the mob's turf! These machines only work with tokens. I can't believe they threw that women in jail!

john doe February 6, 2008 10:36 am (Pacific time)

All true, but it does state on the sites that these devices can not be bought or sold in a number of states including oregon. I cannot believe that the state would walk away from the biggest seizure of illegal gambling devices with a slap on the wrist.

ron February 6, 2008 10:12 am (Pacific time)

John Doe, if your assumption is correct that the machines were stolen, what makes you think he didn't report it? They sell these things on many sites, even Ebay. I can assure you that they would not be allowed on Ebay if they were truly gambling devices. The same thing happened to Kim Pelett, owner of City Antiques in Portland, a few years back. She purchased a truckload of these things- even advertised them for sale in the Oregonian. The State Police swooped in, confiscated them, and ultimately all charges were dropped. The Multnomah County DA ordered the machines to be returned to her, which the State Police refused to comply with. So why is this guy charged with 244 counts? Well, the State Police take their orders and are funded by the Lottery.. what do you think?

john doe February 6, 2008 9:33 am (Pacific time)

I am just asking the question..I'm not stating any information. How did the woman get her 6 machines? I have no other information besides what I read on line. I guess I thought it was stolen or something similiar when it stated "follow up investigation"...I am not sure what site you are looking at, but every site I looked at showed these machines as devices used for gambling. I guess such is why he is charged with 244 counts. Am I wrong?

ron February 6, 2008 9:19 am (Pacific time)

John Doe, I don't know where you get your information from but every website on the internet advertises these token machines for sale for the purpose of "home entertainment use only". Your comment about him "not reporting machines stolen????" Where did you get that information from- I don't see it in the news story.

john doe February 6, 2008 8:44 am (Pacific time)

These machines are intended for gambling purposes only...look it even talks about maximizing your profibility on the website. Also these machines run about $500 to $1000 each. Why would you spend that kind of money on a something you are going to store. Second thought where does a small business owner(Orca building) get that kind of money...very suspicous....third thought, how did this other lady get the 6 machines? Drug trade? And why didnt he report them stolen....maybe because he knew they were illegal?

ron February 6, 2008 7:01 am (Pacific time)

It's pretty hard to start a casino with toys, John Doe. If these are token operated machines you would more accurately be opening a fun center like Chuck E. Cheese with them

Larry February 6, 2008 6:43 am (Pacific time)

Really good point Neal, but let me explain something to you...First of all, the reason he probably didn't go to jail is because his family has been bailing him out since he could walk and talk...they are "slippery" people, with lots and lots of money and know every politian and law enforcement person in town. This time, maybe this "wannabe" frat boy will get what he deserves and so desperately be held responsible for his actions. This guy walks around in his "cool" clothes with the attitude that he is invincible...well-no more...he is guilty. What in the hell would you be "storing" these gaming machines for? And getting them in Japan? Unlikely? What do you think???

john doe February 6, 2008 1:01 am (Pacific time)

If you have drugs your guilty whether you used them or not, same applys here. If you had 1 or 2 machines yes probably no foul play here however 250 machines...sounds like intent to me. If nothing is done about this I'm starting my own casino...

Ric from Chicago February 4, 2008 12:50 pm (Pacific time)

Illegal slot machines are a multi milion dollar racket all over the country. I'm sure these people were not involved in anything that. One is the son of a prominant business family and the other is past president of the VFW Lady's Auxilary. Like Fred says, these musta been, you know, a hobby or something.

Fred February 4, 2008 8:59 am (Pacific time)

These machines were inoperable, token machines that did not accept any form of currency and they were simply being stored. As for the woman that was sent to jail, it is my understanding that she is there for other reasons besides possession of the machines.

Gambling February 4, 2008 3:14 am (Pacific time)

Gambling is not anything new to people who play casual skill games online but it does help explain how communities are being formed and how people are forging new relationships online.

Neal Feldman February 3, 2008 11:09 pm (Pacific time)

Valid points, Vic. Should we hide our dice too? Sucks to like Yahtzee I guess. Ah well...

Neal Feldman February 3, 2008 11:34 am (Pacific time)

OK... I'm all for security etc but other than the Prohibition nature of the laws a couple things jumped out at me. She was caught with 6 machines and arrested and thrown in jail... he was caught with 244 machines (same kind if I read it right) and he gets a ticket/order to appear. Did I read it right? If 6 gets you lodgings in the Hotel of Many Bars why doesn't 244? Also putting things into perspective Theft II is also a class A misdemeanor... and that is the crime of stealing, without force or threat (usually shoplifting) something valued between $50.01 and $250.00. Theft I (over $200 by receiving or $750 in any other manner) is a felony (class C felony. ORS 164.055. So my question is, isn't the crime denoted, if you support Prohibition type statutes that is, more severe than receiving $200 in stolen money or goods or worse than shoplifting a ring with a fairly small diamond (or anything worth over $750)? Are the penalties for the theft charges too high or are the class of charges for the crimes listed in the article too low? So much of the law is out of whack, IMHO. Something that puts folks in danger or even kills them (like Sean Lee Hagen's actions behind the wheel) not only do not warrant incarceration, they barely even get a ticket that he has a history of just ignoring, even though his actions killed a man, and 244 counts of these machines in possession gets a ticket but 6 counts of these machines in possession gets a stsy in jail. OK all together now.. "HUH?!" I realize the reporter is just reporting. I'm commenting on the greater scope of what is being reported. Ah well...

Vic February 3, 2008 9:25 am (Pacific time)

Were these machines being used for gambling?? It looks like they were just stored. What about having a deck of cards? I have two...should I get rid of them? This stinks. Seems to me like another example of the state infringing on private citizens lives. If I have a slot machine, I am not necessarily going to use it for illegal gambling any more than having a shotgun means I am going to rob a 7-11.

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