Chainkeen Exchange-Minnesota woman made $117,000 running illegal Facebook lottery, police say

A Minnesota woman has allegedly made at least $117,Chainkeen Exchange000 by running an illegal lottery on Facebook resembling Powerball and tried to disguise her attempts to continue it after receiving a warning from the Hibbing Police Department.

Kathryn Jean Deblack, 39, of Hibbing, Minnesota, is facing multiple charges for running an illegal lottery and earning a $117,000 in just ten months.

Investigators said Deblack deceived over 200 people into thinking their entry fees were going to charity. Participants bought numbered spots to win brand-new items for less, with winners chosen by a random number generator.

Deblack strongly urged participants to avoid any language suggesting their activities were related to gambling.

The Lottery reported that Deblack was involved in illegal raffles on a Facebook page named "Iron Range Razzles," according to a criminal complaint. On April 13, 2021, Minnesota's Gambling Control Board alerted the state Alcohol and Gambling Enforcement Division after discovering her social media activity.

"VENMO PAYMENTS NEED TO HAVE AN EMOJI IN THE DESCRIPTION, not raffle please," Deblack wrote in a Facebook post, The Lottery said. "I was informed they may lock the account because they may worry about it being gambling."

After being informed by an investigator that her raffles were illegal, Deblack confidently defended herself by stating that the prizes were donated to "Operation 120", a reputable nonprofit organization.

The Hibbing police contacted Operation 120 to verify whether Deblack had made good on her promise. However, they discovered that she had only made one donation and had not followed up with the charity after expressing her intention to check the legal requirements.

Deblack received a disciplinary warning from the district attorney, who stated that the case would be closed and treated as a learning opportunity for Deblack.

ATV raffle emerges in 2021

On November 21, 2021, gambling enforcement investigators received another complaint, reopening the case. Deblack was accused of selling 100 tickets at $120 per ticket for a chance to win her 2018 Grizzly 700 Special Edition ATV. To participate, individuals could submit payments through PayPal or Venmo. A random drawing would determine the winner of the ATV, with the first name selected receiving the prize. A second name would be drawn for a runner-up prize of $500. Additionally, Deblack pledged to donate $1,000 to the Schnorr Mudfest event. All these details were outlined in a video she shared on her Facebook page, as reported by The Lottery Post

Deblack initially denied the raffle for the ATV but later admitted using proceeds to pay off the loan on the ATV and donating $1,000 to Fishing With Vets. A Fishing With Vets board member stated they never authorized the raffle, as the nonprofit organization "does things by the book."

Deblack wrote an email to the agent, saying: "I'm sorry, and I just thought if profit was given to [charity], it was considered charitable gambling. You clarified all that yesterday. What can I do to avoid being in trouble here? I feel sick about this."

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One final game with 'Razz Queen'

Less than four hours before she sent that email to the investigator, detectives said Deblack set up another private Facebook page called "IRR" to continue conducting illegal gambling activities.

She went by the name "Razz Queen" on her new page and bought new products to raffle them off and earn profits. For instance, once, she sold tickets at $20 each to 20 people for an item she had bought for $100.

During the investigation, police discovered that some records from Deblack's original Facebook page had been deleted. However, they determined that Deblack had organized at least 25 raffles between December 2021 and February 2022. The raffle group had 167 members, and most of the discussions revolved around how to join the lottery. Deblack herself expressed concerns about avoiding detection.

Deblack has been charged with conducting a lottery 12 times. She could face up to 12 years in prison and a $36,000 fine if convicted. She is scheduled to appear in court on October 9, 2023.