Texas police raided 7 gambling businesses and detained 23 people, then they allegedly discovered an illegal payout scheme involving Pokémon cards
Pokémon cards were allegedly being used as alternatives to cash payouts.
An illegal gambling ring operating inside several businesses in Texas was reportedly busted by police on Wednesday, Nov. 4. But instead of the typical cash payouts, winners were allegedly rewarded with Pokémon cards to skirt around state gambling laws.
According to Sheriff Javier Salazar, the Bexar County Sheriff’s Office raided seven stores on the north and west sides of San Antonio, including locations on Broadway, Callaghan Road, Clower, Culebra Road, Dollarhide, West Avenue, and Wurzbach Road, per the San Antonio Express-News. As a result, police seized more than 500 gambling machines and an unspecified amount of money from businesses registered under the name “777.”
Salazar alleged that when players won money on the gambling machines, they were given high-value Pokémon cards instead, an item some people would break the law for. Players could then sell these cards for cash at a neighboring business that appeared to be aware of the illegal operations. According to the sheriff, this is so that individuals could circumvent the payout limit set by the state.
The cost of Pokémon cards can reach up to a million
“At one of the other [raid] locations, there’s actually two doors side-by-side, and you can go into one that’s supposedly a separate business and sell your sports cards,” Salazar said. “We know what they’re doing. They’re trying to skirt the law. It doesn’t make it any less illegal.
Under Texas law, gambling is generally prohibited, except for games held in private spaces where individuals receive no economic benefit beyond their personal winnings. Another exception allows for play involving non-cash prizes and amusement purposes, such as toys and novelties, as long as the wholesale value of the prize does not exceed 10 times the amount charged to play the game.
Pokémon cards, on the other hand, are technically collectible and playable cards, typically intended for enjoyment. However, like many collectibles, they have become highly sought after, with some enthusiasts lining up early in the morning to obtain specific cards. Depending on rarity and demand, prices can range from as little as $1 to as much as $16,492,000, according to The Japan Times.
Police reportedly took into custody 23 people during the gambling ring crackdown. 13 of those detained are facing charges related to the promotion of gambling and drug possession, Salazar said.
Gambling is classified as a Class C misdemeanor in Texas, with offenders facing a maximum fine of $500. On the other hand, gambling promotion is a Class A misdemeanor, which may result in up to $4,000 in fines and a maximum of one year in jail.
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