Public Protection Cabinet
Gaming Supplier Faces License Revocation

Press Release Date:  Wednesday, July 23, 2008  
Contact Information:  Jim Carroll, 502-564-5525  

The Kentucky Department of Charitable Gaming (DCG) has taken the first steps toward revoking the license of a company that sells gaming supplies.

Following an investigation earlier this year, DCG notified Clarko Bingo of Lancaster, Ohio of its intent to revoke the company’s license to sell supplies such as pull tabs in Kentucky. The company has appealed the action, and the department will hold a hearing on the matter, said Commissioner Henry Lackey.

DCG notified Clarko earlier this month that two inspections of company records uncovered violations of six statutes regulating charitable gaming. According to the notice of violation, Clarko had sold supplies to organizations not licensed to conduct charitable gaming and to organizations that were not allowed to sell pull tabs. The report said the company also accepted payments not drawn from charity gaming accounts as required, that some invoices lacked necessary information, and that the company failed to file an accurate quarterly report and keep accurate books and records.

The notice said Clarko had sold to an unlicensed organization at least 15 times in the past year and to charities not permitted to sell pull tabs at least 16 times. On at least four occasions, the company accepted checks from accounts that were not used specifically for charitable gaming, the notice said.

"The integrity of charitable gaming in Kentucky must be maintained," Commissioner Lackey said. "While the vast majority of both charitable organizations and their suppliers follow the law, we remain vigilant to ensure full compliance."

More than 800 charitable organizations sponsor gaming in Kentucky, with gross receipts totaling $527 million. DCG is charged with ensuring such gaming complies with state laws. Last year, the department conducted 161 investigations.

The department is part of the Public Protection Cabinet.