video poker company busted

What do you do if you operate a business which straddles two states, one state where it's illegal to operate video poker machines but it's ok to pay out large jackpots from other video gambling, and another state where video poker is OK but you can't pay out more than $10? Have your customers play video poker on one side, and collect their winnings on the other, of course.

Except it didn't work. Pedroland, a company that runs an arcade on the NC/SC border, was trying to do just that and got caught with a $400,000 fine - equal to about 2 months earnings. They're still operating though. link

This method of thwarting the law sounds hokey, but it's actually similar to how Japanese pachinko parlors operate without getting busted. Gambling on pachinko is illegal in Japan; parlors will sell you a large bucket of pachinko balls, and you can redeem the balls for cheap little teddy bears. Around the corner from every Pachinko parlor is a store that buys those little teddy bears for significant amounts of money.

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