HIBBING, Minn. — A woman who called herself the “Razz Queen” has pleaded guilty to running an illegal lottery that reportedly brought in more than $117,000 in less than 10 months.

Kathryn Jean Deblack, 39, of Hibbing, was placed on one year of unsupervised probation and ordered to pay a $3,000 fine — the statutory maximum — after pleading guilty to a gross misdemeanor gambling charge last week in State District Court.

Deblack, according to court documents, defied warnings from state agents to cease the raffles she conducted through Facebook, instead moving to disguise the scheme that eventually included roughly 200 paying participants. She allegedly claimed to be donating proceeds to local charities, but investigators said a financial review and interviews turned up minimal evidence to back that claim.

The Minnesota Alcohol and Gambling Enforcement Division first began investigating in April 2021, when it was reported Deblack was operating a page called “Iron Range Razzles.”

The agency said she was advertising that people could purchase numbered spots for a chance to win “brand new items … for a fraction of the price,” with winners selected by a random number generator. She directed participants to pay through Venmo and use an emoji, to avoid having her account locked for gambling violations.

AGED closed the investigation as an “educational matter” after contacting Deblack, who said she was donating profits to a local organization that sends care packages to deployed military members. She was informed that only registered nonprofits can conduct raffles in Minnesota.

But court documents say the agency received another referral in November 2021 as it was discovered Deblack offered 100 raffle entries at $120 apiece for a chance to win her personal ATV or a $500 cash prize. She allegedly told an investigator she gave $1,000 to a veterans’ charity but admitted she used the remainder to pay off the ATV loan.

The complaint says Deblack apologized for again running afoul of the law — but, within four hours, went on to set up a new, private and hidden Facebook page called “IRR” to continue the illegal raffles.

A tipster indicated she was using the “Razz Queen” name to buy products and raffle them for her own profit — for instance, selling 20 entries at $20 apiece for a $100 item, resulting in a $300 profit. She would take payments through PayPal, Venmo and other digital services and then select winners with a spinning wheel on her phone.

Search warrants obtained for Facebook and the payment services reportedly uncovered some 200 individual participants who had sent payments totaling $117,723.57 between April 2021 and February 2022. They used emojis, prize names, raffle numbers and random words in the description, as Deblack indicated she was “attempting to avoid detection.”

An investigator also followed up with Operation 120, the organization that Deblack claimed to be helping. An official said the defendant had made a donation once and suggested she would look into the legal requirements to hold raffles but never again reached out.

Under a plea agreement, the St. Louis County Attorney’s Office dismissed 11 additional charges. Judge Rachel Sullivan stayed a 364-day jail sentence on the condition that Deblack remain law abiding and have no same or similar offenses for the next year.

Tom Olsen covers crime and courts and the 8th Congressional District for the Duluth News Tribune since 2013. He is a graduate of the University of Minnesota Duluth and a lifelong resident of the city. Readers can contact Olsen at 218-723-5333 or [email protected].