The Herald Bulletin

Morning Update

Nation & World

March 22, 2013

Florida to probe second sweepstakes chain

ST. AUGUSTINE, Fla. — Fresh off a nearly $300 million racketeering case involving a veterans' charity that benefited from simulated gambling at Internet cafes, Florida regulators will investigate a children's cancer group connected to a sweepstakes network that is four times bigger.

The new probe comes in response to Associated Press inquiries about Children's Cancer Cooperative, a group that operates out of a South Carolina bingo parlor, shares a lawyer with Allied Veterans of the World and has collected cash from more than 200 of the sweepstakes cafes in Florida.

In exchange for the money that has flowed into the Children's Cancer Cooperative from the cafes, the charity's name is listed as sponsoring sweepstakes prizes offered at the cafes, giving players the impression money lost on the fast-moving games mimicking Vegas-style slots goes to help sick kids.

As with the Allied Veterans case announced earlier this month, the central questions will be how much money the cafes raised, how much of that should have been taxed, and how much ultimately went to charity.

When authorities in Florida charged 57 people in the Allied Veterans case, they labeled Jacksonville attorney Kelly Mathis — who has also for years represented Children's Cancer Cooperative — the architect of the scheme. The resulting political and legal maelstrom triggered the resignation of Republican Lt. Gov. Jennifer Carroll, who had done consulting work for the charity, and sent top elected officials from both parties in Florida and North Carolina scrambling to return or at least explain the more than $1 million in campaign contributions they accepted from donors linked to Allied.

The revelations also have ignited a debate in Florida about how well the industry is regulated, how the millions of dollars flowing in and out of the cafes can be properly policed and whether enough of it is going to charities, a chief reason the cafes are allowed to operate tax-free and outside the realm of sanctioned gambling. The Florida House overwhelmingly approved a bill Friday that seeks to outlaw sweepstakes gaming.

Text Only
Nation & World
  • GM sales eyed for impact of ignition switch recall

    As General Motors shows off its newest cars and trucks in New York this week, analysts are watching for signs that consumers are shying away from the ones sitting on dealer lots.

    April 15, 2014

  • Solemn tributes mark Boston Marathon bombing

    Survivors, first responders and family members of those killed in the Boston Marathon bombing marked the anniversary Tuesday with tributes that combined sorrow over the loss of innocent victims with pride over Boston's resilience in the face of a terror attack.

    April 15, 2014

  • First women move to Army platoon artillery jobs

     Under a canopy of trees on the edge of a large field, soldiers from Bravo Battery are lying in a circle as they pore over targeting charts. Nearby, others are preparing the howitzer cannons as helicopters swoop overhead. At the edge of the circle, the platoon leader watches as the field artillerymen go through their training exercise.

    April 15, 2014

  • Russia tests Obama's ability to stop its advances

     With the White House asserting that Russia is stoking instability in eastern Ukraine, President Barack Obama is once again faced with the complicated reality of following through on his tough warnings against overseas provocations.

    April 15, 2014

  • Malaysia jet search area too deep for submarine

    The search area for the missing Malaysian jet has proved too deep for a robotic submarine which was hauled back to the surface of the Indian Ocean less than half way through its first seabed hunt for wreckage and the all-important black boxes, authorities said on Tuesday.

    April 14, 2014

  • Rocket leak delays space station delivery launch

    A space station cargo ship will remain Earthbound for a while longer because of a rocket leak.

    April 14, 2014

  • Whitefish shortage causing Passover meal problems

    A shortage of whitefish in the Great Lakes region resulting partly from the winter deep freeze is coming at an inconvenient time for Jewish families: the Passover holiday, when demand is high because it's a key ingredient in a traditional recipe.

    April 14, 2014

  • Post, Guardian win Pulitzers for NSA revelations

    The Washington Post and The Guardian won the Pulitzer Prize in public service Monday for revealing the U.S. government's sweeping surveillance efforts in stories based on thousands of secret documents handed over by National Security Agency leaker Edward Snowden.

    April 14, 2014

  • Police seek answers after 7 dead babies found

    The discovery of seven dead babies in cardboard boxes in a Utah garage has police desperately seeking answers from the mother and other family members about how such a tragedy unfolded over a decade with no one noticing.

    April 14, 2014

  • Ukraine asks for UN peacekeepers in restive east

    Ukraine's acting President Oleksandr Turchynov on Monday called for the deployment of United Nations peacekeeping troops in the east of the country, where pro-Russian insurgents have occupied buildings in nearly 10 cities.

    April 14, 2014

More Resources from The Herald Bulletin
AP Video
Tributes Mark Boston Bombing Anniversary Raw: Kan. Shooting Suspect Faces Judge US Supports Ukraine's Efforts to Calm Tensions Suspect in Kansas Shootings Faces Murder Charges Ukraine: Military Recaptures Eastern Airport Raw: Storm Topples RVs Near Miss. Gulf Coast NASA Showcases Lunar Eclipse Pistorius Cries During Final Cross-Examination The Boston Marathon Bombing: One Year Later Michael Phelps Set to Come Out of Retirement First Women Move to Army Platoon Artillery Jobs Sex Offenders Charged in Serial Killings Police: Woman Stored Dead Babies in Garage OC Serial Murder Suspects May Have More Victims Family: 2 Shot in Head at Kan. Jewish Center Raw: Horse Jumping Inspires 'Bunny Hop' After Attack, Officials Kill 5 Bears in Florida Popular Science Honors Year's Top Inventions ND Oil Boom Attracting Drug Traffickers
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium