NewburyportNews.com, Newburyport, MA

April 23, 2009

Lottery licenses reinstated at stores for now

Salisbury convenience shops can sell tickets until court case decided

By Angeljean Chiaramida

SALISBURY — The local stores that had their Lottery licenses suspended because of illegal gambling charges had those privileges temporarily reinstated, after promising not to allow the gambling machines in their businesses again.

Two of the most lucrative Lottery stores in the state, Dick's Variety Store and Marte-L's, which rank No. 2 and No. 7 respectively among the state's 4,500 Lottery locations, plus Richdale and Mobil On the Run convenience stores all lost the right to sell Lottery tickets more than a week ago. The suspension occurred after a March 31 raid by Salisbury police, who seized $25,000 and 10 video poker machines from the stores that police say were used for illegal gambling.

Lottery officials said in a previous interview they had suspended selling privileges at the four stores pending hearings before the Lottery Commission. The final determination on whether the stores would be allowed to continue as Lottery agents will depend on the final disposition of the cases before the criminal court system, Lottery officials said.

Yesterday, the Lottery issued a statement indicating that by last Friday all the stores had temporarily been allowed to sell tickets again: "The Massachusetts State Lottery held hearings for the agents in question. The agents received provisional reinstatement of their licenses pending the outcome of the legal proceedings. The agents also agreed to bar gaming or gaming-like machines from their businesses."

Lead Salisbury police investigator on the case, Sgt. Anthony King, filed charges Tuesday at Newburyport District Court after weeks of sorting out the corporate ownership of the four stores. Multiple felony charges of "setting up and promoting a lottery and gaming devices" were filed against 10 people — both owners and workers in the stores.

Selling little else but Lottery tickets, Dick's Variety Store, located at the state line on Main Street, closed while its license was suspended. It has now reopened. One of the state's top five grossing stores, Dick's Variety sold more than $8 million in Lottery tickets during fiscal 2008, which runs from July 30, 2007 to June 30, 2008.

Marte-L's, also one of the top Lottery sellers in the state, sold more than $6 million during fiscal 2008. The other two stores recorded sales of about $1.8 million each.

After an undercover investigation, police believe the video machines were used as the equivalent of illegal slot machines in the four stores. However, Thomas Butters, the attorney for King's Pre-Paid Phone Cards, which leased the machines to the stores, claims the machines are legal if used as directed and are part of a phone card promotional sweepstakes.