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Identifying Significant Issues In

Attorney Generals Office, State Police announce shutdown of illegal video poker gamblingring

“This defendant raked in millions of dollars in illegal proceeds, draining money from Pennsylvanians – and from the Commonwealth of Pennsylvania — over the last decade. These video poker machines – with the lure of the cash payout – are illegal gambling devices. We’ve taken action with the Pennsylvania State Police to shut his enterprise down.” The investigation began in January 2016 following a review of gambling device questionnaires, which are completed by the owners of bars and clubs where illegal machines are discovered and used to determine which vendor provided the unlawful machines. Investigators began undercover surveillance on bars and clubs with illegal gambling machines from Zenner Vending. As part of Zenner’s video poker machine operation, participating bars and clubs made cash payouts to players who “won” credits on his machines.  The cash payouts, coupled with the poker machines being games of chance, made the operation illegal under Pennsylvania law, according to Shapiro. All of Zenner’s machines also had “knock off” devices and an internal accounting feature that kept track of each player’s credits earned and winnings. Those added devices made the machines illegal gambling devices per se under state law, Shapiro said. With assistance of a Statewide Investigating Grand Jury working with the Attorney General’s office, investigators determined Zenner was splitting the profits of his poker machines with venue owners, usually 50/50. Based on reports evaluated by investigators, they estimate that Zenner’s split of the proceeds was approximately $14,470 per week, according to Shapiro.

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