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BY BILL DOLAN
Times Staff Writer | Wednesday, December 24, 2003 | (No comments posted.)
HAMMOND -- A Lake County businessman pleaded guilty this week to supplying illegal video gambling machines to bars around Northwest Indiana.
Arthur E. Barker appeared Monday before U.S. District Court Magistrate Andrew Rodovich to admit to allegations in a two-count indictment alleging he operated illegal gambling businesses and aided and abetted money laundering.
He did so without the benefit of a deal with the U.S. attorney to recommend leniency. No date has been set for his sentencing.
A federal grand jury in March alleged Barker conspired from 1997 to Aug. 28, 2001, to place video gambling machines in taverns and lodges.
Lake County has 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 ones 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.
Illegal gambling machines, as opposed to pinball and other video games, pay off winners with money in violation of state law.
FBI and investigators from 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 in August 2001.
They also raided Ace Distributing at 630 Liverpool Road in February 2002 and seized $10,270 in alleged gambling proceeds. It is seeking forfeiture of that money.
Barker is owner of Coffee Inn Inc. and C&O Vending and Ace Distributing Inc., two legitimate vending businesses.
Bill Dolan can be reached at bdolan@nwitimes.com or (219) 662-5328.
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