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mines whether taxes are up to date,” Mr. Leonard said, noting that an unfavorable report and denial of a lottery license can be appealed within a 30-day time limit. “So far, we’ve denied 42 applications (on the basis of credit, criminal, and tax records) but a lot of them have been reversed,” he added.
In phase two of the licensing process, tax auditors and field officers of the Department of Taxation are doing on-site evaluations, visiting the prospective vendors to verify the information included on the application forms and checking security arrangements in particular. “They look to see that the business has a safe in Which to keep the tickets, that doors and windows have locks,” Mr. Leonard explained.
Although no county business has yet been given formal second phase approval, Paul Baldwin of Baldwin’s Grocery in Washington reported that an agent from the Department of Taxation inspected his store last week and concluded “everything looks hunky-dory.” And according to Mr. Leonard, with more than 1,000 locations passing the on-site evaluation so far, this second stage of the licensing process has a failure rate of zero.
For the third phase, applicants will have to meet bonding requirements, which Mr. Leonard said would probably be $5,000, and show they have an electronic transaction bank account to handle lottery fund transfers. “The vendors will have to deposit the money for the tickets in a special account, and once we’ve verified that the money has been transfered, then their tickets will be delivered,” he said.
95.5%