"We wanted to get away from knocking on your door, or calling you up, saying, it's Shop with a Cop time, can you help us?" he said.
While Lottery figures show that the FOP's share of gross profits from the video lottery location should have been $91,607 in 2013, the FOP officers said their group has lost money on the site for the past four months.
Grimm said Action Gaming and the FOP split gross profits 50-50, but the FOP pays all payroll and expenses for operating the Harrisville lodge.
As part of the agreement, Action Gaming loans the FOP money to cover months when they lose money on video lottery, Grimm said.
"We knew we were taking a chance with the lottery," he told commissioners. "We were told there are months when people hit big and you lose money."
Grimm said members of the public who want to gamble at the Harrisville lodge have to get associate memberships in the FOP.
Musgrave said three "show-cause" hearings still to come will involve similar scenarios. Commissioners will meet after the hearings to determine possible actions against the organizations.
Organizations that improperly obtained limited video lottery fraternal status could face fines of up to $10,000, reductions in the number of machines allowed and possible revocation of Lottery licenses.
Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.