Texas Gambling Dens Allegedly Paid Winners in Pokémon Cards

A suspected illegal gambling network in San Antonio, Texas, allegedly paid winners in Pokémon and sports trading cards. These could be exchanged for cash at a neighboring business, according to Bexar County Sheriff Javier Salazar.

Deputies raided seven game rooms before dawn Wednesday (Nov.), detaining 23 people and seizing an estimated 500 to 600 gambling machines.

The venues allegedly operated under a common umbrella known as “777.” Of those detained, 13 were expected to be jailed on charges or outstanding warrants involving illegal gambling, organized criminal activity, or drug offenses.

Fuzzie Animals

At one location, a trading-card buyer operated immediately next door, allowing customers to convert their prizes into money, potentially receiving hundreds of dollars.

“We know what they’re doing. They’re trying to skirt the law,” Salazar told reporters.

Texas law contains a narrow exception for amusement machines awarding noncash merchandise, commonly known as the “fuzzy animal exception.”

To qualify, the wholesale value of prizes available from a single play cannot exceed the lesser of $5 or ten times the price of playing.

The alleged trading-card arrangement was an attempt to circumvent those restrictions, according to the sheriff.

Old Trick, New Twist

The use of merchandise and vouchers to disguise gambling payouts is hardly new in Texas, where courts have spent decades grappling with operators attempting to exploit the fuzzy-animal exception.

In 2003, the Texas Supreme Court ruled in Hardy v. State that machines awarding tickets redeemable for retail gift certificates did not qualify for the exemption because the certificates functioned as cash equivalents.

Unlike gift certificates, collectible trading cards are physical merchandise with an independent resale market, although their use as gambling prizes would still be subject to legal restrictions.

Salazar said investigators had previously encountered game rooms using silver pellets as prizes, which customers could exchange for money.

Cash, Drugs, and Dangerous Wiring

The sheriff said deputies discovered substantial amounts of cash at one location suspected of serving as a distribution hub for the other businesses.

At another venue, two women allegedly possessed felony quantities of drugs, including methamphetamine and heroin.

Salazar described illegal game rooms as predatory, particularly toward older customers living on fixed incomes. He also warned that such establishments can attract robberies, violence, and claimed some of them burn down because of dangerous electrical installations.

Authorities had not disclosed the total amount of money recovered as of Wednesday’s briefing.