Veterans of Foreign Wars Post 2936 is under investigation by the states Racing and Wagering Board for allegedly failing to report its gambling proceeds.
The state is currently investigating and cannot comment any further, Racing and Wagering Board spokesman Lee Parks said Friday.
Until the amount owed to the state can be determined, the post will remain closed and the organizations bell jar license has been revoked.
The post, located at 525 Caroline St., has been closed since October after it failed to pay its electricity, heating and phone bills.
At a meeting held in November, at least 60 former members expressed interest in the posts reopening.
Post members are currently seeking donations to pay off its debts and reopen the post.
Frank A. Northrup, VFW District 4 commander in charge of the posts reopening, said he could not comment on the investigation until it is concluded.
Mr. Northrup in November could not say how much money the post owes because it was still being tallied, but had predicted that the post would be back on its feet within a month.
He had said no illegal activity took place at the post.
Attempts to reach Larry F. Latimer, former post commander, were unsuccessful this week.
Mr. Latimer resigned in November, shortly after the post closed.
He has estimated that the money the post owes for outstanding utility bills is a few thousand dollars.
Lester M. Duvall, who has assumed the role of unofficial post commander, did not return a call seeking comment. He has said a lapse in keeping financial paperwork is likely partially to blame for the posts closure.