Keeping gambling house charge dropped in one case; another one opened

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Daniel Scallorn

While a charge of keeping a gambling house in Mountain Home has just been filed, the same charge filed earlier against a Green Forest man has been settled and dismissed.

In late July, 33-year-old Daniel Scallorn was arrested and charged with operating gambling houses in Mountain Home and Harrison. Both businesses are shut down.

CHARGES DISMISSED

The charges against Scallorn in both cases were dismissed in “the interest of justice” during a hearing in Boone County Circuit Court on Dec. 13.

According to court documents, Scallorn agreed to forfeit $117,000 held in one bank account to the 14th Judicial District. He also forfeited his interest in all gaming machines seized. The parties agreed Scallorn did “not act purposefully in violation of the law,” but that he either knew — or should have known — that his activities were illegal.

Scallorn also agreed to cease and desist from engaging in any activity related to machine gaming or operating games of chance within the state.

The hearing into the two cases was held in Boone County Circuit Court at the request of Scallorn’s lawyer.

Scallorn has also been sued by a company in Little Rock that provided gaming machines for “internet lounges” in Berryville and Green Forest. The company — Dark Knight Vending — alleges that Scallorn violated the terms of a five-year-contract executed early last year by allowing the machines to be used for gambling purposes.

The Little Rock vending company did not supply machines used in the Mountain Home and Harrison operations.

Exhibits filed with the suit include a multi-page, small print “amusement machine placement agreement” requiring that monies “may never be paid or awarded to players.”

In the complaint, the company acknowledges that Scallorn arranged to have Dark Knight Vending pick up the machines from the Berryville and Green Forest operations.

But, the company contends that some of the machines were missing and a number of others had been badly damaged.

Dark Knight Vending is seeking $500,000 in damages. While the case — which was filed in the Sixth Division of Pulaski County Court — still shows to be open, but there has been no activity noted in electronic court records since it was filed on Sept. 12.

ALLEGED KIDNAPPING

Police began to focus on Scallorn’s Platinum internet Lounge in Mountain Home on July 4 after a woman alleged she was held against her will by Danny Baird, identified as an employee of the business.

The woman told Mountain Home police she had been at the internet lounge playing video games when Baird approached her and said he wanted to show her something. The victim said that Baird then locked the doors to the building, pushed her into the bathroom, hit her with his fists and a flashlight and demanded she make a video in which she would admit to stealing money from the business.

According to the probable cause affidavit, the victim reported Baird threatened her with a knife, saying he would kill her and her son if she told anyone about the encounter. Baird was alleged to have also given the victim a deadline to raise $5,000 and repeated the threat to kill the woman and her son if the timetable was not met.

Eventually, Baird was reported to have called a friend to pick the victim up and drop her off at a Mountain Home residence.

Baird is charged with kidnapping, aggravated assault, terroristic threatening and 2nd degree battery. His case remains active. He has been an inmate at the Baxter County Detention Center since July 4 with bond set at $250,000.

HARRISON LOCATION

Scallorn’s internet lounge in Harrison was the focus of an undercover operation by police in the Boone County city. Harrison undercover officers saw customers inserting money into what were described “gambling machines” in hopes of “winning payoffs.”

At the time, Harrison Police Chief Chris Gaddy said, “if people are putting money into a machine to gain profit, that would be gambling.”

While Scallorn was alleged to have operated “lounges” in Berryville and Green Forest, court records do not show that gambling-related charges were ever brought against Scallorn in Carroll County.

NEW GAMBLING HOUSE CHARGE

The new charge of keeping a gambling house was filed Dec. 21 against 39-year-old Muaad Al Malike of Mountain Home. In the probable cause affidavit, he is listed as the owner of a smoke shop located in the Eastside Centre Court, not far from where Scallorn’s Platinum Internet Lounge operated.

According to the probable cause affidavit, police were called to the business in late October to investigate an alarm that had gone off. As police looked into the incident, they discovered a safe had apparently been removed from the business. They also reported finding evidence that the smoke shop was “more of a front for a gambling house” than a legitimate operation.

Police said the back room of the store housed eleven casino-style table games. It was reported that evidence was obtained that the smoke shop paid winners in several ways, including cash and by utilizing services such as PayPal and Venmo.

In Arkansas, gambling is only legal at state-sanctioned casinos, the casino and horse track located at Oaklawn in Hot Springs, by participating in the state lottery or state-sponsored mobile apps.

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