Prosecutors, gaming machine company agree to $1.6 million settlement in racketeering lawsuit

Bibb County prosecutors and Sudama Resorts LLC have struck a $1.6 million agreement to settle a portion of a statewide racketeering lawsuit filed against the owner of coin operated machines, a number of convenience stores and other individuals in 2015.

The deal brings the total for agreements reached in the suit to about $3.2 million.

Special prosecutor Michael Lambros announced terms of the agreement with Sudama, Sandip Patel, Rohini Patel and Nishita Patel during a Wednesday hearing in Bibb County Superior Court.

In addition to forfeiting $1,650,000, the defendants must pay $350,000 in attorneys fees and the court-appointed receiver’s costs and fees.

Parties in the case had gathered for an emergency hearing requested by the receiver, Macon lawyer and state Sen. John F. Kennedy, who is tasked with managing Sudama’s assets during the course of the suit.

Forest Park-based Sudama owns about 425 gaming machines and a license issued by the Georgia Lottery that allows it to place the machines in partnering convenience stores where patrons pay to play games, according to a motion filed last week.

In order to be legal, the games must require an element of skill and cash payouts are prohibited. Winnings can be redeemed for store credit, gas, merchandise or lottery tickets.

Kennedy and his lawyer argued in the motion that the Georgia Lottery has said it won’t renew Sudama’s gaming license for 2018, meaning the business can’t be legally operated after June 30 and all the company’s gaming machines must be removed from stores across the state.

As a result, Sudama will lose all its customers, be in breach of contractual responsibilities and the company’s value with “immediately evaporate upon the loss” of its license July 1, according to the motion.

As part of the agreement announced Wednesday, Kennedy will be allowed to auction off Sudama’s gaming license, contracts with stores and gaming machines placed in those stores in an effort to raise the $1.6 million. If enough money isn’t raised, Sudama can either pay the remainder or allow Kennedy to auction off vehicles, other gaming machines or a warehouse.

An open house is set for Thursday in preparation for a May 11 live auction. The sale has been advertised in newspapers across the state and with members of the Georgia Amusement and Music Operators Association.

This story was originally published May 3, 2017 at 5:25 PM with the headline "Prosecutors, gaming machine company agree to $1.6 million settlement in racketeering lawsuit."