Sunday Focus -- Using Veterans

     You may have read the story from Florida last week about a federal investigation into Internet Gambling Cafes that are permitted in that state only if they contribute part of their profits to a charity.
      In the Florida case, that charity was "Allied Veterans", which ran dozens of the cafes.
      Amendments to the 1901 Alabama Constitution allow Alabama electronic and card bingo locations in certain Counties, with a similar restriction.
     According to the Florida Times-Union in Jacksonville, the indictments allege the St. Augustine based charity was not helping many veterans, but was certainly enriching its owners:

"Authorities say the group donated just 2 percent of its $290 million in proceeds to charities over about five years,...they also say the former president received more than $1.5 million and the national commander got $250,000 from the organization."

     Florida's Republican Lieutenant Governor resigned the day after she was questioned by investigators. She owned a PR firm that did work for the Veteran's group.
     News reports said there was search warrants issued for places in other states too, including Alabama, but I have not been able to identify the Alabama connection so far. I'm confident it was not in the Montgomery area.
     Bingo in Alabama also must be for charitable purposes...the Macon County constitutional amendment allowing it is fairly loose though...
 ---------------------------------------------------------------------------------------------------------------
Macon County - Amendment 744
Sec. 1. Bingo.
The operation of bingo games for prizes or money by nonprofit organizations for charitable, educational, or other lawful purposes shall be legal in Macon County. The sheriff shall promulgate rules and regulations for the licensing and operation of bingo games within the county. The sheriff shall insure compliance pursuant to any rule or regulation and the following requirements:
(1) No person under the age of 19 years shall be permitted to play any game or games of bingo, nor shall any person under the age of 19 years be permitted to conduct or assist in the operation of any game of bingo.
(2) No bingo license shall be issued to any nonprofit organization, unless the organization shall have been in existence for at least three years in the county immediately prior to the issuance of the permit or license.
(3) Bingo games may be operated on the premises owned or leased by the nonprofit organization operating the bingo game.
(4) A nonprofit organization may enter into a contract with any individual, firm, association, or corporation to have the individual or entity operate bingo games or concessions on behalf of the nonprofit organization. A nonprofit organization may pay consulting fees to any individual or entity for any services performed in relation to the operation or conduct of a bingo game.
(5) A nonprofit organization may lend its name or allow its identity to be used by another person or entity in the operating or advertising of a bingo game in which the nonprofit organization is not directly and solely operating the bingo game.
(6) Prizes given by any nonprofit organization for the playing of bingo games shall not exceed the cash amount or gifts of equivalent value set by rule or regulation during any bingo session during any calendar week.
 -----------------------------------------------------------------------------------------------------------------

     The real shame here is the use of veterans to run the scam.
     The Allied Veterans website brags about its good works:

The St. Augustine Record 12/22/09
Shopping with vets holiday highlight
Allied Veterans of the World Inc. and Affiliates, working with the Emergency Services and Homeless Coalition of St. Johns County, gave each child a $50 gift card, a warm jacket or coat, and a stocking full of treats.

     Meanwhile the prosecutors say the group was allowing its leaders to buy Maserati and Ferrari sports cars, boats and beach houses...
     I'm always a bit suspicious when a for-profit entity promises that "a percentage" of the profits from sales will go to a charity. What percentage? .5% 1/10 of 1%?
    I won't take part if they don't specify.
    Oh, and the Native American casinos operated in Alabama by the Poarch Creek Indians? They don't have to disclose their profits and they do not have to give a dime to charity....though they have given millions to local school districts, money the schools have not hesitated to accept despite the source...gambling, liquor and cigarette sales.
     TIME Magazine reports a Veterans homeless shelter operated with money from the cafe operations may have to close because of the investigation.