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It's not uncommon to see gaming machines at bars, taverns or clubs.
The only problem is, if a payout is offered, the machines are illegal. Establishments caught with them, offering payouts, can be fined or potentially lose their alcohol licenses.
Any gambling not authorized by the state of Indiana is illegal, according to state excise officer Lt. John Folk.
If payouts are given on credit for any game of chance, that's gambling. According to the 2002 Indiana Criminal Code, a person who knowingly or intentionally engages in gambling commits unlawful gambling, a Class B misdemeanor.
Exceptions must be approved by the state and have included riverboat gambling, bingo if licensed by the state, two horse-racing tracks and two off-track betting facilities, plus the Indiana lottery. Licensed nonprofits also can have daily draws and pull tabs.
Folk said with any violation of the alcohol beverage and tobacco rules or regulations, there's a gamut of potential penalties if the violations are proven - anywhere from a warning to revocation of licenses. With each charge, the financial maximum penalty is $1,000 per count.
Excise officer Patty Fleck, who sits on the Kosciusko County Alcoholic Beverage and Tobacco Commission, said, "They're illegal. With them being illegal, when people come to the local board (for permits, transfer of licenses, etc.), they're asking us to approve something illegal" if they having gaming machines.
Asked if gambling in establishments where alcohol is served is a problem, Folk said, "It's pretty widespread but it's not a stated priority for our department."
Asked if it's a growing problem, he said, "That's a hard one to answer. All I can say is that it's a persistent issue."
Fleck said in Kosciusko County, it's three strikes and you're out. When investigating an alcohol establishment, she said, her main focus is keeping minors out. However, when she goes in, she makes note of any gambling, and that's the business' first strike. If they are caught a second time, the business will go before the local Alcoholic Beverage Commission.
If there's a third strike, Fleck said, "I'm not approving (the license). ... We go three strikes and you're out."
District-wide, Folk said, there were 12 establishments cited for gambling-related violations. The district includes 15 counties in northeast Indiana, including Kosciusko County.
Such citations for violations usually occur after investigations are made into complaints.
"There are two avenues of prosecuting (violators) available to us," Folk said. The first is administrative - an action can be filed with the AB&T commission. The second is criminal prosecution through the local prosecutor. It's up to the local prosecutor to pursue charges in that instance.
Kosciusko County Prosecutor Steve Hearn said he has no personal knowledge of gambling occurring in local establishments, but he would guess that there is some going on. If any charges are forwarded to him of the violations, he said, he would certainly take a look at them and evaluate the facts.
While aware of the dangers of gambling, Hearn said, Indiana has made some gambling legal - a priority even.
As for his priorities as a prosecutor, Hearn said he believes his time is best served prosecuting violent crime offenders and drug-related crimes.
"The drug problem has a more devastating impact to the community," Hearn said.
His position to prosecute the crimes with innocent victims is the same as prosecutors in surrounding counties, he said.
Fleck said most businesses that sell alcohol know gambling is illegal and they keep up with the gambling statutes.
But some businesses "usually have them sitting right out there or in a back room. It depends on how bold they want to be."
Folk advised, "If it's against the law, don't do it."
"I think it's the fact that the law is the law," said Fleck. "Don't come in front of the board expecting every permit to be passed. ... We're wanting to give (businesses) the opportunity to serve the area," but the local board will not tolerate illegal activity.
At the April 1 Kosciusko County Alcoholic Beverage Commission meeting, Fleck said, the local board plans to discuss illegal activities within permitted premises and the board's stance on such issues as gambling, underage drinking and whatever issues the public may want to discuss.
The meeting is held at 1 p.m. in the Kosciusko County Courthouse, Warsaw. Local board members are chairman Gordon Vanator, Kenneth Johnson, Fleck and Elim Smith.
