A new report shows that Florida companies that allegedly ran illegal gambling operations received federal COVID relief funds to help pay employees and stay afloat.
The Sun-Sentinel notes that the state’s underground slot operators received over $500,000 in U.S. taxpayer-backed loans via the Small Business Administration (SBA). The newspaper reported that virtually all of the loans have since been forgiven.
“Most Florida slot-machine arcades that obtained these loans never got raided,” the Sun-Sentinel reported. “Some have closed, others remain open.”
Allegations Of Falsifying Documents
One of those was called 25Midway, which received a $75,000 Paycheck Protection Program loan in 2020. The company had a slot gaming room raided last year in Fort Pierce. Three other gambling venues that received federal assistance were also raided including Delray Beach, Jensen Beach, and Fort Myers.
To obtain the loans, the companies allegedly listed their business as operating as “performing arts companies,” “amusement arcades” or “personal services.” For example, the Pair-a-Dice Arcade in Cape Coral received $46,970 in funds, according to the newspaper, after using the business code for “fine arts schools” in paperwork for the loan.
SBA representatives said mislabeled business codes were obtained by lenders before funds were forwarded to the businesses. The administration didn’t comment on the funds being used by illegal gambling operations, but did note that those who falsified information in applying for federal financial assistance have broken the law.
“Providing false information to SBA on applications is a serious offense that can lead to civil and criminal penalties,” the SBA said. “The specific penalties depend on the false nature of the information and the program involved.”
The proliferation of underground gambling houses has become a bigger concern for law enforcement around the country. Along with Florida, raids have been carried out in Texas, California, Ohio, Michigan, and other states. California officials have said many times the businesses are operated by larger criminal gangs and organized crime.
“It’s hidden in plain sight,” Los Angeles County sheriff’s detective Richard Velasquez told the Los Angeles Times. “You don’t know that it’s there until you know that it’s there.”