Oregon state lotteries earned $968 million last year by feeding bills into slot-machine-like video lottery terminals found throughout Oregon taverns, strip clubs and bowling alleys. But unlike their Las Vegas counterparts, these terminals disburse cash prizes instead of following laws of probability; according to a class action lawsuit they appear rigged.
Portland attorney Justin Curzi filed this lawsuit on behalf of one of his clients against the Lottery alleging they misrepresent the odds of winning video poker hands and mislead players by suggesting strategies without disclosing that games pay out less than expected. It seeks class certification as well as damages of at least $134 Million due to negligence, fraud and unjust enrichment.
The Lottery declined to provide details on this specific case, though its spokesman Doug Baumann did indicate they generally don’t close down machines until there are clear indications there’s an issue. According to him, any concentration of lottery retailers in certain neighborhoods is due mainly to real estate costs rather than any malicious plan to prey upon low-income people. Lottery profits help fund public schools, outdoor school programs and other state projects; yet their reliance has drawn accusations that state has become addicted to gambling; reform measures such as moratorium on lottery bonds until proper investigations can occur before moving forward with closing down machines or closing off machines completely.