- Associated Press - Thursday, August 27, 2015

SALEM, Ore. (AP) - A state audit says the Oregon Lottery is unable to detect businesses that may be using video poker machines to operate as illegal casinos.

The audit was released Thursday by the secretary of state’s office.

The Oregon constitution prohibits “casinos” but doesn’t define them.

Auditors say that lottery officials use subjective measures to enforce the rule, such as whether a business looks like a casino. Auditors found many retailers that derived more than half of their income from lottery machines.

Auditors recommend that lottery officials put more emphasis on evaluating a retailer’s sources of income and work with the Legislature to come up with a firm definition of “casino.”

Lottery director Jack Roberts says actions that might diminish lottery revenue would lower funding for schools, parks and economic development.

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