Credit: Cape Coral Police Department
Florida’s wave of illegal gambling crackdowns rolled on this week as Cape Coral police seized 139 slot-style machines and nearly $176,000 in cash from two arcades, just weeks after similar raids in the city and neighboring Fort Myers. These add to recent statewide prosecutions, including a $24 million racketeering case and the suspension of a county sheriff.
The Cape Coral Police Department (CCPD), in collaboration with the Florida Gaming Control Commission (FGCC), executed warrants at Pirate Treasure Arcade, located on Del Prado Boulevard North, and at another location on SE 47th Street. Investigators said undercover operations confirmed both were operating as illegal casinos.
The CCPD emphasized in a press release announcing the raids that “owning and operating these casinos is illegal.”
“The City of Cape Coral has a zero-tolerance policy for these illegal casinos; if they continue to operate, they will be subject to imminent criminal investigation and prosecution.”
Cape Coral’s Summer Busts Set the Stage
The latest operation follows on from one of the region’s largest seizures in August. Then, CCPD and FGCC confiscated 428 gambling machines and over $540,000 in cash from six “arcades” and one residence in Cape Coral.
CCPD said the illegal operations preyed on elderly residents, particularly on those with gambling addictions. Authorities also said that the machines were rigged, with some calibrated to have a return-to-player percentage as low as 18%. For context, Florida law required the minimum payout to be 85%.
At the time, police identified “persons of interest” but made few arrests, underscoring the challenges of translating large-scale raids into lasting deterrence.
Raids in Neighboring Fort Myers Expand the Scope
The illegal arcade problem spreads beyond Cape Coral. At the end of September, FGCC and the Lee County Sheriff’s Office raided two arcades in Fort Myers. They seized 109 slot machines and nearly $95,000 in cash.
Unlike the Cape Coral busts, authorities issued Notices to Appear to Stamenia Gacevic and Kelsey Jean Russell.
FGCC Director Carl Herold warned that unregulated gambling creates risks for consumers, who have “no guarantee of fair payouts, oversight, or protections” compared to regulated casinos.
Statewide Pattern: From RICO to Corruption
The Cape Coral and Fort Myers raids are part of a broader battle in Florida against illegal gambling operations. They include a few multi-million-dollar high-profile cases.
The $24 Million RICO Case
In September, Florida State Attorney Bill Gladson filed racketeering charges against an illegal business in Sumter County. He alleged that a ring laundered over $24 million through the IL Villagio Senior Entertainment Center in Lady Lake.
Authorities seized 190 machines and $348,000 in cash from the location, disguised as a senior entertainment center.
An unusual turn of events in the case is that one defendant, Rima Ray, the alleged CEO of the business, is challenging the seizure of nearly $341,000 in cash and a gold bar. She argues that authorities have failed to follow the law.
Sheriff Lopez Scandal
Meanwhile, suspended Osceola County Sheriff Marcos Lopez faces racketeering charges tied to an alleged gambling operation that prosecutors say generated $21.6 million. Lopez allegedly used his position to protect the business. He also provided insider information, secured leases, collected cash, and channeled funds into his political campaign.
A co-defendant recently pleaded guilty and agreed to testify against him, raising the stakes in the case.
Manatee County Eyes New Ordinances
Some Florida jurisdictions are considering updates to their laws in response to the surge in cases. In Manatee County, deputies seized 55 machines, 27 computers, and over $160,000 from a Cortez Road arcade.
County officials are now drafting an ordinance to regulate or shut down so-called adult arcades. They argue that operators simply reopen in new storefronts after raids. If passed, the ordinance may mark a turning point in empowering local governments to become active regulators rather than perpetual chasers of shifting arcade fronts.
A Whac-a-Mole Challenge
Despite the increased raids, illegal gambling arcades continue to reappear quickly after shutdowns. That’s due to factors such as low penalties and high tolerance, which allow these operations to remain profitable.
Enforcement agencies warn the cycle will continue unless Florida strengthens penalties and closes legal loopholes. For now, Cape Coral’s latest bust contributes to a statewide picture of illegal arcades, multimillion-dollar racketeering cases, and even law enforcement officials facing prosecution.