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For crying out loud, Chicago: Legalize video gaming and ban these shady sweepstakes games

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Illinois

* If Chicago and other municipalities don’t step in to ban these sweepstakes games, Illinois needs to do so as soon as possible. The unregulated “gray market” is really a “black market.” Sun-Times…

A man previously tagged as a “mob associate” by law enforcement is accused in a new federal indictment of conspiring to dodge taxes through the use of “sham” companies — and then marrying his 80-year-old girlfriend to thwart her grand jury testimony.

Robert “Bobby” Dominic, 70, is charged with a conspiracy to defraud the United States, tax evasion and failing to file tax returns in the 19-page indictment made public Tuesday.

The charges are the latest tied to the legally gray area of sweepstakes machines. The devices look and operate like typical video gambling machines, but they’re unregulated and largely untaxed thanks to loopholes in Illinois’ gaming laws. […]

Dominic is accused of hiding his income from the feds by having sweepstakes-involved companies pay him more than $500,000 through “sham” companies. One of the sweepstakes companies was owned by James Weiss, the Chicago Sun-Times has confirmed.

The indictment alleges that two sweepstakes companies paid nearly $900,000 to one “sham” company between October 2014 and January 2020, even though it provided no services. The sole member of the company was Dominic’s girlfriend, it says, who died Jan. 4, 2020.

Enough already. These machines are operating out in the open and they need to go away. Chicago encourages this behavior by not legalizing video gaming within city limits. It’s just ridiculous, not to mention the revenues they’re giving up.

More on Jimmy Weiss is here.

* From the indictment…

Between in or around 2014 and continuing until at least in or around 2022, DOMINIC did not file a United States Individual Tax Return, Form 1040.

Needless to say, a casino owner or a video gaming machine distributor couldn’t get away with doing that.

* Overt acts…

a. On or about February 19, 2020, Articles of Incorporation for Sham Company B were filed with the State of Illinois.
b. On or about March 22, 2020, Company 1 entered into a “consulting agreement” with Sham Company B.
c. On or about March 22, 2020, Company 2 entered into a “consulting agreement” with Sham Company B.
d. On or about February 14, 2021, the IRS received a 2020 Form 1099 issued by Company 1 to Sham Company B in the amount of $120,000.
e. On or about February 14, 2021, the IRS received a 2020 Form 1099 issued by Company 2 to Sham Company B in the amount of $185,000.
f. On or about April 10, 2021, Sham Company B filed a false 2020 corporate income tax return which contained false expense deductions.
g. On or about April 6, 2022, the IRS received a 2021 Form 1099 issued by Company 1 to Sham Company B in the amount of $115,500.
h. On or about April 6, 2022, the IRS received a 2021 Form 1099 issued by Company 2 to Sham Company B in the amount of $154,000.

Again, regulators would’ve caught this.

posted by Rich Miller
Wednesday, Feb 26, 25 @ 9:55 am

Comments

Any new rules from Chicago seems unlikely given that the sweepstakes boys have been lining Mayor Johnson’s pockets. Da mob went woke, lol: https://www.chicagobusiness.com/politics/brandon-johnson-gambling-contribution-may-violate-ethics-law

Comment by Three Dimensional Checkers Wednesday, Feb 26, 25 @ 10:22 am
The more you legalize things : the less opportunity for organized crime. Especially on something like this.

Comment by Steve Wednesday, Feb 26, 25 @ 10:22 am
Particularly fun timing on this post as Chicago City Council is currently debating the Mayor’s $830M bond deal with huge deferred payments and interest expenses - “Oh we must pass this, wherever else could we get new revenue for infrastructure?”

Comment by ChicagoBars Wednesday, Feb 26, 25 @ 11:00 am
===Enough already. These machines are operating out in the open and they need to go away.===

Brandon Johnson’s numbers are so bad if he stepped in to ban the sweepstakes machines and supported video gaming as a legal, regulated, and decent source of Revenue it could kill popular support for banning the sweepstakes machines.

Comment by Candy Dogood Wednesday, Feb 26, 25 @ 11:22 am
The city of Chicago only needs to look at how much video gaming is bringing in to Springfield, to see how much non tax revenue it is leaving on the table.

Comment by Give Us Barabbas Wednesday, Feb 26, 25 @ 11:25 am
Readily available video gambling (I refuse to call it videogaming, as no need to denigrate Nintendo with that degeneracy) should be banned and the gray/black market version of it should be smashed as well. All that does is suck money out of gullible saps and turn people into mindless zombies at otherwise social settings.

Comment by TJ Wednesday, Feb 26, 25 @ 11:32 am
Robert “Bobby” Dominic owns Richards Bar on Grand Avenue.

I stumbled in there by chance one evening years ago. I knew right away that I was in a mob bar. Maybe the feds will seize it if he gets convicted? More likely, he’ll sell to a friend of his before then.

The name of the owner may change, but I doubt much else will be different at that place.

Comment by 47th Ward Wednesday, Feb 26, 25 @ 11:51 am
ok sure legalization but I’m focused on how he decided to marry his girlfriend, a 70 year old man marrying an 80 year old woman. lol. congratulations.

Comment by Amalia Wednesday, Feb 26, 25 @ 11:55 am
“marrying his 80-year-old girlfriend to thwart her grand jury testimony”

And you thought romance was dead.

– MrJM

Comment by @misterjayem Wednesday, Feb 26, 25 @ 12:02 pm
Agreed with TJ on this one. Video slot machines are popping up at grocery stores for crying out loud. Couple that with the ever-expanding sports betting market and you’re sucking so much wealth from the poor and uneducated.

Comment by I-55 Fanatic Wednesday, Feb 26, 25 @ 12:14 pm
La Scarolla mentioned in the Trib story. Fantastic food. Great place. Can go next door to Richard’s and have a smoke if you want to.

Comment by Eire17 Wednesday, Feb 26, 25 @ 2:39 pm
Lou Lang’s legacy

Comment by Leslie K Wednesday, Feb 26, 25 @ 4:22 pm