Authorities in Texas detained 23 people during a pre-dawn raid targeting seven businesses allegedly operating as part of an organized illegal gambling operation. However, investigators uncovered an unusual payout system involving Pokémon and sports trading cards that’s said to have allowed the businesses to get around gambling laws, as reported by KSAT News.
Bexar County Sheriff Javier Salazar described the operation as a major sting targeting businesses operating under the same umbrella, known as “777.” Deputies reportedly seized between 500 and 600 gambling machines during the raids.
Of the 23 people detained, 13 are expected to be jailed on various charges. According to Salazar, the allegations include felony drug offenses, outstanding warrants, keeping a gambling place, and engaging in organized criminal activity.
Winners didn’t receive cash
Salazar explained that the businesses had allegedly developed a system designed to avoid legal restrictions on gambling payouts. Rather than paying winners large amounts of cash directly, operators reportedly limited payouts to no more than 10 times the amount a player initially wagered.
Instead, successful players received Pokémon or sports trading cards. A separate business next door would then allegedly purchase the cards from winners, sometimes paying them a couple hundred dollars. This arrangement allowed customers to effectively receive cash after winning, despite the businesses’ apparent restrictions on direct payouts.
Although the setup might appear harmless to some customers, Salazar argued that the operations were illegal and presented risks beyond financial losses. He also raised concerns about potential gang violence, saying that “We’ve seen instances where one organization will come and rob the other organization,” further adding that “Some of these will actually burn down because they’ve got illegal power hookups.”
The sheriff further described the businesses as predatory, particularly because some of their customers were elderly residents living on fixed incomes. According to his remarks, these individuals could be especially vulnerable to gambling operations that encourage them to spend money they cannot afford to lose.
Texas Penal Code defines a gambling device as a machine that allows players to obtain something of value through a game determined wholly or partly by chance. The law does not limit the definition to machines that pay out cash. It also defines a “thing of value” broadly enough to include benefits other than money.
Texas law specifically makes it an offense to play and bet for money or another thing of value using cards, dice, or gambling devices. The law also covers businesses that facilitate gambling, according to the Texas Constitution and Statutes. Anyone who knowingly operates or participates in the earnings of a gambling establishment can face a Class A misdemeanor. Meanwhile, knowingly maintaining a property used for gambling can also fall under a Class A misdemeanor.
Published: Nov 10, 2026 09:15 am