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BY BILL DOLAN
Times Staff Writer | Saturday, March 08, 2003 | (No comments posted.)
HAMMOND -- A federal grand jury has indicted a Lake County businessman on charges of supplying illegal video gambling machines to bars around Northwest Indiana.
Arthur E. Barker, owner of Coffee Inn Inc., C & O Vending and Ace Distributing Inc., was named in a two-count indictment alleging he operates those corporations as illegal gambling businesses.
Barker couldn't be reached Friday for comment. An answering machine at the business indicates it currently is named Coffee and Ace Distributors.
The indictment alleges Barker operated legitimate vending businesses, but also conspired from 1997 to Aug. 28, 2001 to place video gambling machine in taverns and lodges.
Illegal gambling machines, as opposed to pinball and other video games, pay off winners with money in violation of state law.
Barker's gambling business came to an abrupt end in August 2001 after the FBI and investigators of the U.S. attorney's office raided 10 bars across the area, including Loyal Order of Moose lodges in Hammond and Lowell, and confiscated video poker machines.
Federal authorities arrested Art Barker and John Barker at their Lake Station business. John Barker is not named in this week's indictment.
Investigators also raided Ace Distributing at 630 Liverpool Road in February 2002 and seized $10,270.18 in alleged gambling proceeds. It is seeking forfeiture of that amount.
Lake County has had a history of local bars featuring video poker machines to draw customers. Law enforcement officials said the bars and poker machine distributors have made millions of dollars from their use.
In 1996, the state began legalizing video poker gambling in state-approved casinos, including the five on Lake Michigan, as well as one-time charity events sponsored by nonprofit organizations.
However, the machines remain illegal under state law in any other settings.
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