William N. Suter, the board chairman and chief executive officer of Games Production Inc., the private firm that operates the D.C. Lottery's instant ticket lottery games, paid $1,000 in fines after he was arrested in 1970 and later convicted of two gambling charges, D.C. lottery board officials said yesterday.

Suter, who was convicted of operating an illegal lottery and also of maintaining a gambling operation, was placed on probation for three years, according to D.C. police records.

D.C. Lottery Board Chairman Brant Coopersmith and board member Jerry Cooper said that Suter was not part of Games Production when the lottery board selected it last year over two competing firms to run the instant ticket games that started in August.

Willie L. Leftwich, Suter's attorney, said he informed the lottery board last fall that Suter had joined Games Production and of Suter's gambling convictions.

Cooper said the board discussed the matter, but decided that board rules did not preclude Suter's involvement in Games Production. The board has said it will not hire any contractor who has had a conviction within the last five years.

"I don't have a problem with it," Cooper said. "It's not a crime of moral turpitude."

Suter could not be reached for comment.