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Slots Sold In San Jose Not Legally Used

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The owner of a San Carlos party supply company gambled and lost when he illegally supplied antique slot machines for use at a charity fundraiser, law enforcement officials said. Stephen Squires, a resident of San Mateo, is under investigation for the illegal rental of the machines, which are permitted for possession if they are more than 25 years old. His case was forwarded this week to the San Mateo County District Attorney's Office for review.

The state Department of Justice received a tip in April that 4S Casino Party Suppliers, a business at 1449 Bayport Ave. in San Carlos, had agreed to provide a charity event in Piedmont with slot machines. Undercover agents with the Division of Gambling Control attended the event May 6 and witnessed 10 slot machines in use, said Martin J. Horan IV, special agent with the Department of Justice.

Agents served a search warrant June 27 on 4S Casino Party Supply and seized rental contracts in addition to 10 of the approximately 142 slot machines at the store. The antique machines are illegal to use for gambling purposes, Horan said.

Chief Deputy District Attorney Steve Wagstaffe said the district attorney's office has yet to determine whether a misdemeanor or felony charge is likely, but a stint in jail is possible with a conviction, he said.

"Incarceration is one of the permissible sanctions," said Wagstaffe.

Horan said Squires, 68, told investigators that he supplies equipment for about 500 events per year. Squires said about one of every five rentals involves the slot machines, which each cost

$3,000 and rent for $60 per night, Horan stated.

Squires said he is confident that he didn't break the law and suspects that a competitor is responsible for tipping off the Department of Justice.

"There's nothing that our attorneyscan see that prevents the renting of these slot machines, as long as they're not used for gambling," said Squires, who claimed that, so long as people are playing with free chips, playing a slot machine is not considered gambling.

But Horan said undercover agents were able to purchase extra tokens in addition to those that were handed out for free. The agents were also told that whoever had the most tokens at the end of the night would win a prize.

July 13, 2006
Posted By Tom Jones
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