Woman Stole $60K from Fred Meyer to Fuel Gambling Habit

A former Fred Meyer employee from Oregon City has admitted to embezzling $60,000 over 2022 and 2023 from the company to support her gambling addiction.

Oregonian Woman Found Guilty of Stealing Money to Fuel Gambling Habit

Rainbow Melodi Stammet, 43, was found guilty on two counts of theft in Clackamas County on Tuesday. According to officials, additional charges were dropped as part of her plea deal. She has been making restitution payments to Fred Meyer and has no previous criminal record.

Fred Meyer representatives stated that while the exact total stolen couldn’t be confirmed, the amount is estimated to exceed $60,000. The company believes the thefts started in May 2022 and continued until Stammet was apprehended in March 2023.

The woman was reported to have been employed by the retailer for two years when, in March 2023, loss prevention officers observed her taking cash from a self-checkout station at the Oregon City location. However, she later quickly told officers that she had stolen the money to support her gambling habit. Stammet spent a portion of the cash at a local video poker outlet.

Video Poker and Video Lottery Terminals Are Quite Popular in Oregon

As Stammet mentioned, she had been using the stolen money playing video poker, which were quite popular in the state before the PASPA repeal led to the legalization of sports bets. Oregon launched video lottery terminals (VLTs) in 1992, and today, more than 10,000 machines are found in bars, restaurants, and liquor stores across the state. These machines are regulated by the Oregon Lottery, which oversees gaming operations in the Beaver State.

The Oregon Lottery regularly upgrades its terminals with popular slot-style games to keep the machines appealing and up to date. In 2024, the agency acquired over 1,200 new VLTs from Light & Wonder, featuring titles such as “Flush Frenzy” and “American Original.” VLTs generate significant tax revenue, with the Oregon Lottery bringing in almost $1 billion last year. Since legal online casinos are not available in the state, players often turn to these terminals or explore alternative options, such as VPN-accessible gambling sites.

Unfortunately, these outlets are sometimes used by the 88,000 Oregonians who meet the criteria for gambling addiction. Under the terms of legalized gambling in Oregon, the Oregon Lottery is required to allocate at least 1% of its revenue to problem gambling programs. In the past year, more than $7 million was directed toward public awareness efforts and related initiatives.