You know those electronic one arm bandits you see at Jerry’s Sports Pub?
The ones you don’t really care about?
Well, you should care about them because they are costing YOU money while making tens of thousands of UNTAXED dollars for the operators of the machines and the bar, Jerry’s Sports Pub in which they are placed.
.How is this?
Let me tell you……..those machines are being used as de facto (That means “for real”) gambling devices and such use is illegal under Kansas City, Kansas ordinance, state law, and federal law! Much of the income from the machines goes UNTAXED which costs YOU money because YOU have to pay for it in increased sales and property tax
! It boils down to this: most of the income from the machines goes unreported with only about ten to twenty percent of the gross being “on the books”!
How do they do this?
Let’s say that each machine has a thousand dollars a week dropped into it; not an unreasonable figure by far. Let’s say that the machine “pays out”, say 80% of that or $800 to winners.
The ONLY amount that gets reported to the Kansas Department of Revenue is the $200 which is split between the machine owner and the owners of Jerry’s Sports Pub! In other words around $20 is paid in sales tax each week per machine when the figure actually should be around $100 per machine per week!
“Big deal!” you might say but let’s figure how much Money in a year; $5200.00; that’s FIVE THOUSAND TWO HUNDRED DOLLARS A YEAR which the operator of the machine and Jerry’s Sports Pub are SCREWING YOU OUT OF!
Yes, YOU and the city and the state and the federal government! Now if they have five machines, that’s over $25,000.00 a year!
You have to pay your taxes, don’t you?
If you don’t they come after you!
Someone should come after the owners of the machines AND Jerry’s Sports Pub for ILLEGAL COMMERCIAL GAMBLING, POSSESSION OF ILLEGAL GAMBLING DEVICES, FAILURE TO POSSESS A FEDERAL GAMING STAMP AND TAX EVASION!
Now you may next ask how they conceal this?
I’ll tell you how they hide the income! Each machine has an electronic counter which shows how much money has been put into the machine.Jerry’s Sports Pub keeps a handwritten record of how much is paid out to winners. When the operator of the machines comes around every week to settle up the counters are changed using a laptop or other device to show ONLY the amount (Remember that $200?) that is left which amount is then split between the operator of the machine and Jerry’s Sports Pub!80% of the income from the machines goes UNTAXED and the owner of the machine and Jerry’s Sports Pub pay taxes on ONLY $100 EACH!
That’s how they do it!
Of course, Jerry’s Sports Pub puts up its cute little sign that says, “For Amusement Only”….yeah, right, everyone who goes into the place knows they pay off on the machines; that’s the only reason anyone plays them!
Additionally, when these machines are used as gambling devices the operator must have a Federal Tax Stamp which is required by law for EACH such gambling device, legal or not!
They don’t have them.
Now we here at the website don’t think this is right and if you’ve read and understood the situation, we’ll bet that you don’t think it’s right either!So what can be done about it?
You can call the Kansas City, Kansas Police Department. 913) 596-3000
You can call the Kansas Bureau Of Investigation. (785) 296-8200
You can call the Kansas Department Of Revenue. 1 (785) 368-8222
You can call the Federal Bureau Of Investigation. (816) 512-8200
You can call the United States Department Of The Treasury. (202) 622-2000
Internal Revenue Service.(To request a reporting form) 1-800-829-0433
You can call your neighbors and friends!
You can keep calling these agencies, your neighbors and your friends until the owners of the machines and the owners of Jerry’s Sports Pub PAY THE TAXES THEY OWE AND CEASE THE ILLEGAL COMMERCIAL GAMBLING OPERATIONS!
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Everyone in this great nation is supposed to be equal in the eyes of the law so let’s help make that so! Thanks for reading!
If you have any doubt about anything shown on this website just check out the links provided below to the relevant statutes and ordinances.
Legality Of Gambling In Kansas: http://www.krgc.ks.gov/index.php/component/content/article/2-uncategorised/111-is-gambling-illegal-in-kansas
Illegal Gambling Definitions: https://www.krgc.ks.gov/index.php/public-info/faq-s-2#amusement
Kansas; Unlawful Possession Of A Gambling Device: http://rvpolicy.kdor.ks.gov/Pilots/Ntrntpil/IPILv1x0.NSF/93850fcfe0c647ce8625655b004e9334/6e5ff2d8f6321fa58625798a0069e64e?
IRS Statement On How Gambling Is Taxed And Federal Tax Stamp: