They light up U.S. 41 north of the airport with neon promises — flashing 7-7-7 and mounds of gold — on storefronts wrapped in dark tint.
Up and down 14th Street in Bradenton, along the Manatee Avenue corridor and tucked in southern stretches of Sarasota County, places like Diamond City and Spin Fun operate in plain sight.
They call themselves arcades, but there are no claw machines or prizes for kids inside. Instead, these adult playrooms boast illegal slot machines that have eluded law enforcement for years, closing down on one street only to reopen on another.
Despite more than a decade of legislative crackdowns on illegal gambling, a joint investigation between Suncoast Searchlight and the Bradenton Herald found unlicensed casinos operating out of strip malls and storefronts have continued to proliferate across the region, offering unregulated slots and cash payouts in open defiance of state laws.
For years, state and local authorities have struggled to police these operations, hampered by limited resources and weak criminal punishments that allow arcade owners to brush off law-enforcement interference, the news organizations found.
Because they are unregulated, there is no official record of where these casinos exist. So reporters turned to internet searches, customer review sites and state business filings to identify nearly 20 places offering illegal slot machines from Bradenton to Englewood.
Reporters crossed the region to visit these fly-by-night gambling parlors. They interviewed law enforcement officials about why the operations remain in business and analyzed police dispatch records and incident reports to trace patterns of violence tied to these establishments. They also attempted to speak with the workers and proprietors of these businesses but were repeatedly turned away — encounters that underscored the secrecy surrounding the underground gambling scene.
Among the findings:
- With unregulated betting odds stacked against the customer, storefront casinos target both fixed-income seniors who spend their days glued to the bright screens and the late-night crowds who want a place to party long after last call at the bars. But unlike sanctioned gambling, there are no consumer protections. Even after winning big, customers have walked away empty-handed when strip mall game rooms refused to pay.
- Authorities point to the lengthy legal hassle of dismantling these operations — and low payout at the end. First, it can take an undercover officer to confirm illegal activity. Then, a judge must approve a warrant. Even after a sting, law enforcement must rent storage lockers for court to preserve bulky slot machines as evidence. After all that, many get off with a civil fine or misdemeanor.
- Many of the arcades have become breeding grounds for drugs and violent crime. During the past five years alone, local law enforcement responded to these businesses for hundreds of calls ranging from burglaries and fights to stolen cars and threats of suicide. Dozens of patrons have overdosed right from their gambling stools.
At least three area game rooms with some of the worst patterns of violence — Betsey's, Dragon Arcade and Cosmo Joe’s — were investigated by authorities for allegations of gambling within the past few years. Authorities have not announced charges against the owners or operators of those arcades. Each remains open in the same locations.
“The reality is that if you don’t hassle your neighbors, chances are very good that cops are not going to come after you,” said Bob Jarvis, a professor at Nova Southeastern University who specializes in gambling law. “They expect to get raided. The adult arcades see that as just the cost of doing business. They’ll shut down for a few days, then just re-open.”
In March, the Sarasota County Sheriff’s Office arrested five people, including 45-year-old Illinois resident Ilir Iskali, who was charged with racketeering and gambling in alleged connection with operating the Palms Social Club. This month, the agency sent 13 cease-and-desist letters warning these businesses to comply with the laws.
In an interview, Sarasota Sheriff Kurt Hoffman said he testified on the issue at the Florida Legislature nearly two decades ago — and acknowledged that, despite enhanced pressure from his agency, some of these illegal casinos continue to persist.
“We are not trying to ruin people’s fun; there’s still bingo,” Hoffman said. “These are criminal enterprises, and for me, it’s a quality of life issue … they can pay, not pay. Where the money is going, nobody knows. I’m getting more complaints from citizens than ever in my 20 years doing this.”
Reporters reached out to each local law enforcement agency in whose jurisdictions they identified such casinos. Manatee County Sheriff’s Office spokesperson Randy Warren wrote in an email that “detectives continue to gather intelligence and monitor arcade-style businesses” and “are on the lookout for new ones that may be opening.”
“Businesses that are breaking state law have been warned,” Warren said in the email. “And they know that if they don’t cease illegal operations on their own, then detectives could show up at any time and shut them down.”
In Bradenton, authorities insist they take a “proactive approach” to illegal gambling, citing two active investigations into convenience stores with slots, but also pointed to the long game of whack-a-mole it takes.
“It’s absolutely illegal,” Bradenton Police Capt. Brian Thiers said. “We go out and inspect machines — this is definitely something we look for. We proactively go after that. But these cases are time-consuming. It’s not easy.
“The goal at the end of the day is to not have gambling machines in the city.”
Reforms tried to stop the gambling. Florida game rooms survived.
In Florida, slot machines are banned outside of about 15 approved casinos, which are either tribal-owned or grandfathered in near South Florida.
That hasn’t stopped the bets in a state with a long history of scandals related to gambling — and failed attempts to shut it down.
Former Lt. Gov. Jennifer Carroll resigned in 2013 amid scrutiny over her ties to a nonprofit accused of operating a $290 million gambling ring through “internet cafes” across 50 locations statewide.
These cafes advertised themselves as sweepstakes parlors, offering casino-style games of chance they claimed were no different than the McDonald's Monopoly promotions. In response, then Gov. Rick Scott signed a sweeping new law that year aimed to close the loophole, with games like the Florida lottery and McDonald's promotions excluded.
Nearly a decade later, a 2021 Florida law took it a step further and banned slot machines altogether outside of the exempted casinos. Lawmakers then created a Gaming Control Commission as part of an agreement with the Seminole Tribe to further crack down. The new agency staffed 18 law enforcement officers tasked with curbing the spread of illegal gaming across all 67 counties.
The agency has touted busts, including two last year in the north Florida town of White Springs, along the Suwanee River, where authorities seized nearly 180 slot machines, computers, ATMs and cash, while arresting five casino operators.
Then, earlier this year, agents from the U.S. Department of Homeland Security arrested Osceola County Sheriff Marcos Lopez on charges of racketeering over his alleged involvement in a $20 million illegal gambling scheme. In another case, authorities shut down an off-the-books casino near Orlando disguised as a garage door repair shop.
In Florida, violators found guilty of illegal gambling can face up to five years in prison and fines of $10,000 per machine. But most times, experts said, those behind these busted game rooms get off with a misdemeanor, especially if it’s a first offense.
How to Report Illegal Gambling
If you suspect illegal gambling activity, contact local law enforcement and file a report to the Florida Gaming Control Commission at (850) 880-3433 or online. A map of all permitted gaming establishments can also be found on the agency’s website.
Red flags of illegal gambling:
- Devices that appear to be slot machines at any facility outside of Miami-Dade or Broward counties or outside of facilities operated by certain Indian tribes on tribal land
- Devices missing a visible FGCC license or registration information
- Devices awarding cash prizes
- Devices that do not appear to have any oversight or regulation
- A facility offering sports betting
Source: Florida Gaming Control Commission
“Illegal gambling houses and illicit gaming machines provide zero consumer protections, no guarantee of fair play … and offer no recourse if an operator disappears with their money,” the Gaming Control Commission said in a press release following a 2024 bust.
But along busy corridors across the Suncoast, similar game rooms continue to do business in plain sight.
The commission’s public relations staff, along with board member Charles Drago, did not respond to at least three calls and as many emails for this story.
“These businesses tend to pop up in distressed shopping centers,” Manatee County Commissioner Tal Siddique said. “They’re able to make a lot of money with low costs, and people like to gamble. I don’t know that we have a good solution yet.”
Inside an arcade: No protections or guarantees for gamblers
At the far end of a sleepy plaza on Swift Road in Sarasota, blackout tint covers every window and door. There’s no business name, no posted hours — just a small neon “open” light glowing against the stucco facade.
During a muggy Tuesday afternoon in early July, nearly a dozen blue-collar residents hoping to walk away a few bucks richer spent their lunch break playing the slots.
Inside Magic Arcade, 6-foot-tall machines line the walls of the dimly lit room, flashing games like “Lightning Cash” and “Ultimate Fire Link” that offer jackpots north of $10,000. The games – with digital screens, spinning numbers and symbols and buttons to stop the wheel – are no different than the Vegas-style slot machines banned under Florida law.
When approached by a reporter, two workers inside refused to identify themselves. They would not comment on the business or provide contact information for a manager or owner. Within minutes, they demanded the journalist leave and insisted no photos of the games be shared. No security staff were present.
At Betsey’s Arcade in West Bradenton, visitors must ring a doorbell and wait to be buzzed in through a locked front entrance, where metal bars shield the door and windows. Just inside, a narrow hallway leads to a front desk staffed by an employee and a security guard wearing a vest.
Just a few miles away at Cosmo Joe’s Arcade, the atmosphere was more relaxed. There was no visible security, and the door was open. Inside, dozens of slot-style gaming machines lined the walls. Only one employee was present, seated behind a desk at the rear of the arcade, along with a lone customer playing slots. The employee declined to comment.
One customer in the parking lot, who declined to be identified, said he’s been visiting arcades like these for about six or seven years. He described them as a way to unwind and “have a little bit of fun.” He said he’s played in Florida, Kentucky and other states, and while he’s “never really won anything,” he said he still enjoys going.
Because these game rooms are not licensed to operate slot machines, they avoid the hefty state gambling taxes that regulated casinos like Hard Rock have to pay — shortchanging government coffers.
The games themselves also are unregulated. Experts say that means even worse odds — and no payout protections — for those placing bets.
Florida statutes require authorized slot machines to maintain a payout percentage of no less than 85%. The storefront game rooms sprouting across Florida evade audits and other regulatory safeguards, including the payout percentage minimum, according to the Gaming Control Commission.
At Magic City in Bradenton, one customer got into a fist fight with the security guard after the arcade refused to pay him his $102 earnings, claiming there was a problem with the machine, according to an October 2022 Manatee County Sheriff's Office incident report.
In Sarasota, Hoffman told reporters an illicit casino in his jurisdiction also refused to pay a woman who reportedly won a $4,000 jackpot.
“Everything about these is illegal,” said Kevin Jursinski, a Florida attorney with decades of experience in gaming law, including representing casino operators before the sweepstakes loophole closed.
“But people are spending $50 to $100 a day,” he said of the regular arcade customer. “It's not like Vegas, where you can blow $5,000 in a night at the craps table.”
Despite law enforcement interference, storefront casinos remain open
Pictures plastered on Google and social media of a Bradenton storefront called Betsey's highlight the Vegas-style machines.
In May 2023, Manatee County sheriff’s deputies were dispatched to investigate allegations of illicit gaming activity at the business.
The redacted call report offers no details of the police work that ensued. Betsey’s remains open.
Just months later, tips about underground gambling led authorities to Cosmo Joe’s Arcade in Bradenton. That casino, too, remains open.
That same year, deputies showed up at Dragon Arcade, also in Bradenton, to check out suspicions of illegal gambling. Yet the cherries on its slot machines are still spinning.
Across the region, game rooms investigated by law enforcement authorities remain open in defiance of warnings and criminal complaints. Some casinos temporarily close, then reopen a few doors down, registering the new business to a different associate. Many times, they never shut down at all.
Following a month-long investigation, Bradenton police in April 2024 obtained a search warrant and seized four arcade-style slot machines from downtown’s Pour Decisions Saloon. The machines were confiscated, but none of the customers or employees were arrested. The business remains open.
When asked where the case stands, Bradenton Police Department spokesperson Meredith Censullo said the money inside the machines was seized as state forfeiture but that she was unable to provide any further updates.
Despite major stings in 2023 from local authorities that shut down multiple game rooms and seized more than 100 machines and tens of thousands of dollars in alleged illegal proceeds, there’s been no indication of similar raids since then. Warren, the Manatee sheriff’s office spokesperson, did not respond to a follow-up question asking whether more recent operations have taken place.
New legislation introduced earlier this year in Florida proposed stiffer penalties to shut down prohibited gambling operations for good. But despite no clear political opposition, the 93-page measure died at the 11th hour.
State Sen. Corey Simon, R-Tallahassee, who sponsored the bill, did not return several calls and messages to his office phone, personal phone or his legislative assistant.
Hoffman cited his agency’s progress in shutting down these arcades to county commissioners during a July 2 public budget meeting.
At its peak earlier this year, Hoffman said there were more than 50 of these businesses operating in Sarasota County. He said most operators are from out-of-state and that once they feel pressure in one jurisdiction, they just move to another, bouncing back and forth between Sarasota, Manatee and Charlotte counties.
Hoffman said he believes there are now just eight of these casinos still open in Sarasota County.
“They know it’s illegal – they just try to make as much money as they can, then get out of dodge,” Hoffman told reporters for this story. “We’ll be playing whack-a-mole for a long time.”
In Bradenton, police officials also pointed to the time and resources it takes to dismantle these operations, storing heavy equipment as evidence for months on end. Bradenton police similarly start by sending cease-and-desist letters to operators and landlords, then follow up after 10 days with possible busts if they don’t comply.
“There’s a lot going on that needs to be addressed by law enforcement, and you have limited resources,” said Bob Dekle, a retired state prosecutor who also taught at the University of Florida. “The effort just might be spent on prosecuting something more important … but it’s a slippery slope. These casinos tend to breed more serious crime.”
Dekle said enhanced public pressure can prompt law enforcement and state attorneys to get more aggressive, like they have in many of the more rural Florida counties. But that could also trigger backlash from retirees who frequent these game rooms and see the nickel slots as a victimless crime.
Breeding grounds for drugs and violent crime
What may seem like harmless fun for a mostly retired crowd masks a darker reality.
Arcade parlors have become hotbeds for drugs, fights and theft. Over the years, law enforcement officers have responded to dozens of calls to these casinos for crimes more violent than off-the-books gambling.
To track the spillover crime tied to these arcades, reporters examined law-enforcement activity at more than 20 game rooms during the past five years. Many incidents were minor — reports of suspicious people or trespassing. But in some cases, customers collapsed from overdose after taking drugs they said they bought at the arcades.
In April 2024, authorities responded to the parking lot at Magic City, where a woman was reportedly overdosing. Passed out but not unresponsive, the 38-year-old told police she bought crack from a man who hangs out around the arcade at night. At least five others have overdosed at the same establishment, according to police reports. One elderly woman’s purse was stolen from her car in broad daylight there while she was gambling inside.
Up the road in Bradenton, in the parking lot of Cosmo Joe's, a suspected fentanyl dealer punched a customer in the face twice and stole her iPhone, claiming her ex-boyfriend owed him $100, a police report showed. In a different incident in 2022, the arcade manager reported to police that $1,800 had been taken out of one of his machines. Authorities have recovered stolen vehicles from the casino, and responded to overdoses there too.
Last month, deputies arrested a 29-year-old woman at Trapper’s Arcade on Cortez Road accused of smoking meth and fentanyl in the bathroom. At the same game room, medics responding to an overdose found another woman slumped over in her chair at the slots.
A company managed by Gary Kompothecras – the founder of the 1-800-Ask-Gary lawyer referral service, a prominent real estate developer and the creator behind the MTV reality show Siesta Key – owns a commercial building in Bradenton leased by Spin Fun Arcade. Law enforcement has responded numerous times to the address, mostly for drug-related incidents, overdoses, or suspicious vehicles or people.
When reached by reporters, Kompothecras insisted he had no knowledge of illegal gambling and was “not at liberty” to discuss further details.
“I don’t know what they’re doing in there,” Kompothecras said of Spin Fun, where the wrap on the windows clearly advertises slots and jackpots. “They pay the rent. I don’t go in there … Are they bothering anyone?”
Reporters found no evidence that law enforcement has accused Kompothecras of any alleged criminal conduct related to the arcade. When reporters visited Spin Fun during an afternoon this week, there was a chain padlock on the door, but indications were that it is not abandoned. The most recent customer review online was posted two weeks ago.
Retired law enforcement officials said that because of the amount of untaxed cash on hand at these types of storefront casinos, money laundering is commonplace, and they can become targets for dangerous armed robberies. Two men were arrested last year for holding up the Jacks Are Wild arcade in Sarasota at gunpoint. The arcade now appears to be closed.
“It’s along the same lines as the massage parlors,” said Walter Zalisko, a private investigator and former police chief of Oak Hill, a small town near Daytona. Before that, he spent decades as a detective in New Jersey.
“There’s just not enough time in the day and not enough officers to enforce these (gambling) laws,” Zalisko said. “You see shootings, stabbings, drug dealing, everything else. It’s a very secretive type of business – and there’s a reason for that. They’re a nuisance to any community.”
This project is a collaboration between the Bradenton Herald and Suncoast Searchlight, a nonprofit newsroom of the Community News Collaborative serving Sarasota, Manatee, and DeSoto counties. Learn more at suncoastsearchlight.org.
