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 New Mexico Gaming Contractor Involved in Bribery
 Investigations in Texas and New Jersey

Gtech, the corporation that is running the New Mexico Powerball lottery, and is also pushing the lottery board to get them connected to proposed "Keno electronic gambling devices, as well as the possible connections between all the proposed video gambling machines in New Mexico and the proposed central computer, is involved in bribery and kick-back investigations in New Jersey and Texas.

According to an article in the Feb. 20, 1997 Houston Chronicle, Gtech national sales manager, J. David Smith, previously convicted for fraud and bribery involving lobbyists in New Jersey, reportedly boasted about bribing at least ten Texas Legislators to insure passage of the lottery bill and getting the contract for Gtech.

The Houston Chronicle article goes on to relate the following: "Russell F. Davidson, a former Kentucky lottery official, had told investigators in Kentucky in 1993 that Smith had made such a brag to him. He said the comments were made while he and Smith were sitting in a hotel bar while attending a 1990 Gtech users conference in Scottsdale, Ariz. Davidson told investigators that Smith named eight or 10 Texas lawmakers and said he had paid them up to $10,000 apiece for ‘favorable consideration’ of a lottery bill.

"According to Davidson, his conversation with Smith took place about six months after a major push in a special legislative session to adopt a Texas lottery. Texas voters approved a state lottery in 1991, and Gtech began running its online games in 1992.