- Associated Press - Friday, January 20, 2017

LINCOLN, Neb. (AP) - A southeastern Nebraska keno operator is accused of concealing $1.28 million in illegal bets and committing more than 260 violations of state regulations.

The state Department of Revenue’s Division of Charitable Gaming wants to fine Zeilinger Keno $263,000 and revoke its lottery operator and worker licenses, The Lincoln Journal Star reported (https://bit.ly/2jfAeq5 ). Zeilinger Keno provides 30 area communities with keno.

Todd Zeilinger denied any wrongdoing and said he leaves day-to-day operations to bar operators where the games are played. He told the newspaper he’s going to work with regulators and “make sure it doesn’t happen again.”

Regulators say Zeilinger covered for people who placed illegal bets and say he made more than $179,000 in commissions off the wagers. They also said Zeilinger knowingly concealed money missing from the Sutton American Legion keno account and failed to report short and missing deposits to the city of Sutton and the Gaming Division as required by law.

A special prosecutor has been appointed to review the Sutton American Legion case.

Revenue department documents say the owner of the now-closed Rough Reins bar, Jadeen Strauss, was accused of placing $933, 500 in wagers on credit between Jan. 1 and June 4 last year. Placing bets on credit is illegal. Strauss pleaded no contest Tuesday to running a fraudulent lottery scheme, and is scheduled to be sentenced in March.

Zeilinger said that after he was informed of the illegal bets by officials, he shut down operations at the former Rough Reins bar in Utica and at the American Legion in Sutton until the management could be changed.

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Information from: Lincoln Journal Star, https://www.journalstar.com

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