Florida Cracks Down on Unlawful Slot Machines
Florida Gaming Control Commission Cracks Down on Illegal Arcades
The Florida Gaming Control Commission (FGCC) has intensified its efforts to shut down unauthorized gambling facilities, particularly adult arcades, in Florida. These establishments have been operating illegal slot machines, exploiting regulatory loopholes or lack of enforcement.
The surge in new adult arcades since the pandemic appears linked to a gap in availability and demand for gambling options outside the limited legal venues in Florida. The FGCC, often collaborating with local police, has recently shut down multiple illegal operations and seized hundreds of slot machines and cash.
The FGCC, created in 2021 as a condition of a compact with the Seminoles, began receiving funding from the state budget last July. The commission's head, Trombetta, is currently recruiting 15 law enforcement officers to focus on shutting down illegal machines.
One such establishment visited by FGCC officials and a Leon County deputy sheriff was the MVM Arcade on Apalachee Parkway. During the visit, an oblivious gambler opened the door, realized what was happening, and quickly left, leaving his credits in the machine. Staff at the MVM Arcade escaped via a back exit when the authorities arrived.
The FGCC has written cease-and-desist letters to at least six arcades in Tallahassee. The commission's website has started collecting consumer complaints about the operations. Trombetta noted that illegal arcades lack consumer protections, including rules about mandatory payout percentages.
Prosecutors claimed that very little of the $300 million in revenues from these businesses went to veterans. Trombetta warned that illegal arcades may not pay state taxes and could be contributing to organized crime.
This operation is not the first of its kind. The last major crackdown on illegal gambling machines was in 2013, when a $300 million racketeering, illegal gambling, and money laundering operation was uncovered. This operation was linked to Allied Veterans of the World Inc., which ran sweepstakes cafes throughout Florida.
Florida restricts lawful slot machines to tribal casinos and eight pari-mutuel facilities, heavily regulating the market to prevent commercial expansion. The Florida market’s legal complexity and limitations on commercial slot licenses incentivize illegal operations in non-tribal settings, including adult arcades, that have proliferated post-pandemic due to the lucrative opportunities.
Despite legislative attempts to impose tougher penalties, laws remain limited at present, so dynamics around enforcement may shift based on future legal changes. The FGCC is closing arcades in coordination with local law enforcement agencies. As the FGCC continues its crackdown, it aims to restore legal order and protect consumers from the risks associated with illegal gambling operations.
Florida Gaming Control Commission (FGCC) is also investigating and seizing casino-and-gambling related equipment, specifically illegal slots, from unauthorized adult arcades in Florida. The persistence of illegal slots in these establishments indicates a need for stricter regulations to prevent further exploitation of regulatory gaps and lack of enforcement.
