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March 25, 2013

Fla. Officials Eye Another Charity in Internet-Gaming Inquiry

Regulators in Florida are investigating a South Carolina cancer charity whose longtime lawyer is also connected with the nonprofit veterans' group suspected of running a $300-million illegal-gambling operation, the Associated Press reports.

The Children's Cancer Cooperative is listed as the sponsor of prizes offered at more than 200 Florida sweepstakes cafes, raising questions over whether proceeds from the slots-style games went to charity and to what extent they should be taxed, according to AP.

The cooperative is represented by Kelly Mathis, a Jacksonville lawyer whom investigators have labeled the architect of an alleged scheme to operate illegal casinos under the guise of Internet cafes operated by the nonprofit Allied Veterans of the World. In an Associated Press interview last week, Mr. Mathis denied direct involvement in the Allied Veterans cafes, saying he only provided research and advice to the charity on complying with gaming laws.