Leon County deputies, state officials warn 6 Tallahassee operations of illegal gambling
Leon County sheriff's deputies and Florida Gaming Control Commission officers notified six gambling operations on Thursday that they are being watched and advised them to shut down or face tens of thousands of dollars in fines.
The staff of the MVM Arcade, across from the Koger Center on Apalachee Parkway, ran out of the back door when L. Carl Herold, the Gaming Commission Director of Law Enforcement, and Leon County Sheriff Deputy Michael Feldman knocked on the door.
A patron playing a video game that awards cash prizes answered the knocks, saw a contingent of six deputies, and commission law enforcement officers, and slipped away, leaving his money on the table.
“The fact that they left tells you they knew in their mind that this wasn’t all legal,” said Herold standing among 84 video gaming machines with names like "Money Ball," "Money Inferno," "Crimson Cash," and "Cha Ching Dynasty."
At the next stop, farther down the parkway and across from the National Cemetary, a knock on the door of a storefront without a name went unanswered.
A lighted red “open” sign hung above a window next to a paper note requiring a valid ID to enter at the door. There was a car in the parking lot when law enforcement arrived, but the officers did not gain entry.
Calls of “hello,” went unanswered.
“Seems like someone doesn’t want to talk to us,” said Feldman.
Herold slipped a notice to shut down or face consequences through double doors.
It's the first step to get operators to turn off their slot machines.
Some business owners don't know the gambling machines are illegal
Herold said there are small business owners with one or two slots machines and are unaware they are illegal.
The Seminole Nation and four South Florida pari-mutuels have exclusive rights to operate video gaming machines in Florida.
The letters are a quick law enforcement fix that alerts business owners their video gaming machines are illegal in a chance to comply with the law.
Eric Carr, the commission's director of external affairs, said in cases where the business know they are in violation but continue to operate it takes "a lot of casework to take one of these operations down."
When the commission distributed 22 letters to adult arcades operators in Charlotte County recently, 20 establishments removed their video machines.
Enforcement efforts against the remaining two are now being escalated, said Carr.
A new commission and focus
Until now, no state agency has been focused on the illegal operation of slot machines.
The Florida Gaming Control Commission was created in 2021 as part of a compact with the Seminole Nation that gives the tribe and four South Florida former pari-mutuels exclusive rights to operate video gaming machines in Florida.
The commission’s first funding appeared in the state budget last July and its relatively new website began to collect consumer complaints about adult arcades.
Herold said the commission intends to shut down establishments that know they are operating outside of the law because they can foster an environment for violent crime.
As an illegal business, gambling arcades typically keep a lot of cash on hand, have ties to organized crime, prostitution, illegal drugs, and are unlikely to call police when targeted by robbers.
In 2019, the Tallahassee Police Department raided and closed six arcades in the wake of two shootings involving patrons.
Raid part 3: TPD, LCSO raid Tallahassee arcades in illegal gambling probe
Raid part 2: Tallahassee Police arrest 10 people in ongoing gambling raids
New Sheriff in town: Florida Gov. DeSantis makes picks for new state gambling commission
Those establishments were on the city’s west and south sides. The six notices served Thursday are on the north and east sides.
No consumer protection
The Data Bridge Market Research company reports video gambling is surging in popularity. The company reports in the U.S. $36.7 billion was wagered in 2021 on video games and predicts the machines will collect $54 billion in 2029.
But the lack of regulations leaves customers vulnerable to fraud, addiction and financial ruin, according to the Gaming Control Commission.
“There are no rules. There is no consumer protection. They can refuse to pay your winnings, throw you out and there is nothing you can do,” said Herold, when asked about the complaints.
At the MVM Arcade cash window, a sign is posted stating the top cash payout is $2,500.
The establishment had 84 machines turned on when Herold visited.
The “88 Fortune” game flashed a video display of “Grand Prize $110,161.06" while Herold answered questions.
Herold left a letter that warned that the shop’s slot machines are illegal, subject to confiscation, and an administrative fine of up to $10,000 per machine.
“We’re just trying to let them know they are on notice and things will be escalated,” said Carr.
James Call is a member of the USA TODAY NETWORK-Florida Capital Bureau. He can be reached at jcall@tallahassee.com. Follow on him Twitter: @CallTallahasse
This article originally appeared on Tallahassee Democrat: Florida Gaming Control Commission notifies six Tallahassee arcades
