Investigators said Hoyt McDowell, owner of Lookout Lounge, and John Hanson, owner of Wunder Bar, were charged with misdemeanor possession of gambling machines. Customers win tickets when symbols are randomly matched. Scruggs said the tickets were worth 50 cents each and could be redeemed for gift certificates to area businesses. They just knew that people were running in and getting gift certificates. Scruggs said the bar owners were trying to circumvent the gambling laws by providing gift certificates in place of cash for winnings.
Gift certificates have a cash value.
Scruggs said more than one gift certificate had to be won by officers to show a pattern. She said the businesses were not warned to remove the machines before charges were filed. She said the businesses had the machines for no longer than three months. Scruggs said the owners of these businesses face fines equal to the profit they may have made off the machines. McVay and Emrick-Haberland were not available for comment.