Feb 26, 2008 7:14 am US/Eastern
Comptroller's Office Auditing Video Bingo Machines
ANNAPOLIS, Md. (AP) ―
State Comptroller Peter Franchot's office is sending auditors to St. Mary's County to determine if video bingo machines in the county's bars and restaurants are in compliance with state law.
The county allows the machines to be operated by nonprofit organizations. The machine owners and the bars and restaurants are allowed to keep a portion of the receipts to cover expenses.
The state attorney general has ruled that the machines are legal, but profits are subject to the state's admissions and amusement tax. In a letter Monday to legislative leaders, Franchot said the business is ripe for corruption.
Lobbyist Bruce Bereano represents a company with 80 machines in the county and says the tax applies only to for-profit gambling devices, not those operated by nonprofit groups.
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