VERMILION — Judy’s on the Lake, a gaming establishment, was one of eight businesses served with a search warrant for suspected violations of payout regulations, Vermilion Police Chief Bob Kish said Sunday.

Judy’s on the Lake, located in Crystal Plaza at 4652 Liberty Ave., had a “temporarily closed” sign in its window Sunday.

The Ohio Bureau of Criminal Identification and Investigation conducted the initial investigations into several establishments before passing along its findings to the local authorities, Kish said, adding that the Erie County Sheriff’s Office was the primary agency at several of the scenes.

Gaming businesses in Huron, Sandusky, Perkins and Vermilion were served with search warrants Friday evening and had evidence confiscated — eight in all, Kish said.

“(BCI&I) do the initial investigation and forward it to local investigators, and then they deal with it in their own community,” Kish said, adding that Judy’s on the Lake is the first such case Vermilion police have had.

More than 30 standalone gaming machines were taken from Judy’s on the Lake, along with cash, records, chairs and a TV, according to a press release. Kish said the business was paying winners with cash, which is not allowed.

“People deposit small amounts of money in the machines, and they’re supposed to win prizes and vouchers,” Kish said. “The vouchers are supposed to be gift cards for local businesses. That was the intent. It was supposed to be no cash payouts whatsoever, just these cards.”

The investigation began when the state started getting tips about Judy’s on the Lake.

“There were complaints because other places were complying with the law, and it was learned that these people were going beyond what the law allows them to do,” Kish said.

No charges have been filed against the employees or owners, Kish said, adding that the gaming establishment will remain closed for a while.

“We need to do more investigation into who owns these establishments,” Kish said. “It’ll be closed until it sorts itself out in court. This is the first time we’ve ever dealt with something like this, so it will take some time to sort it out.”

Contact Alicia Castelli at 329-7144 or acastelli@chroniclet.com.

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