Florida Gaming Commission Closes 11 Illegal Casinos

In cooperation with the Volusia Sheriff Office, the Florida Gaming Commission helped shut down 11 illegal casinos just before the start of August.

This news comes on the heels of a two-year investigation focused specifically on Volusia County. It also follows a trend of The Sunshine State attempting to crack down on illegal gambling operations.

The Volusia Sheriff’s Office announced the closures and details of their investigation. According to them, they “seized and disabled about 400 slot machines and about $403,000 in cash.”

“Throughout Volusia County, we have these illegal gambling houses that are popping up all over,” Volusia Sheriff Mike Chitwood said in a video announcing the operation, per the Daytona Beach News-Journal’s Brenno Carillo. “It’s sort of like playing whack-a-mole: We’ll go in with a cease-and-desist order, they’ll temporarily shut down and then change locations and operate in a different venue.”

As the Florida Gaming Commission will surely note, The Sunshine State has become a hotbed for these types of operations. These establishments tend to target senior citizens, and Florida remains a popular locale for retirement-age residents. On top of that, it is harder for patrons to decipher between legal and illegal operations. The Sunshine State has expanded its gaming laws over the past few years. Plenty of casinos are peppered throughout the region, and legal sports betting in Florida relaunched at the end of 2023.

This is all to say: While officials count this operation as a victory, it still seems like there is a lot of work to be done.

Illegal Casinos in Florida Responsible for Tens of Millions of Dollars in Revenue

The latest operation isn’t the first of its kind for Volusion County. The Sheriff’s department and Florida Gaming Commission collaborated on a similar investigation this past November. Combined with the latest operation, the county has now seized and disabled more than 600 slot machines as well as $1.3 million in cash.

That’s quite a lot of money. But it’s nothing compared to the level of business illegal Florida casinos are churning out. Consider this excerpt from Carillo’s dispatch on the operation:’

“One of the 11 illegal casinos in the investigation ‘conducted $37 million in slot machine gambling in 2023, resulting in a $5 million profit,’ according to the news release. This money, the agency added, only benefits the venue's owners, while ‘taxable revenue from legal slot machines is directed to the Florida Education Enhancement Trust Fund, which supports students through the Bright Futures Program.’”

In his video address, Sheriff Chitwood profusely thanked the Florida Gaming Commission personnel for their assistance. But he also called for The Sunshine State to take a meaningful stance on casino gaming. “The Legislature needs to make a decision: Either make it legal, and regulate it, or shut it down,” he said.

Will the Florida Gaming Commission Push for Legislation in the Aftermath of Illegal Casino Closures?

Sheriff Chitwood’s sentiments carry plenty of weight. And they are shared by many. But the Florida Gaming Commission may be limited in its options to do something.

Legalizing these gambling houses would, in theory, drum up state revenue. But they would also eat into profits for tribal casinos. Just as the Seminole Tribe will be reluctant to let online sportsbooks in the United States infringe upon their sports wagering monopoly, the state’s legal casinos will likely be hesitant to co-sign any legislation that permits additional gaming operations.

Of course, there might be a scenario that garners tribal support. Regulation could be good for everyone. After all, legal casinos are ostensibly already losing money to these illegal gambling houses. However, giving these establishments a chance to secure casino-type licenses from the Florida Gaming Commission may just invite more open competition for tribes.

Beyond that, allowing for the opening and operation of these locations may not actually fix the problem. Sure, some places would apply and pay for licenses and shell out the necessary taxes. But illegal Florida gambling houses will still exist. It is far more lucrative to operate off the books rather than bankroll all the associated fees.

Expect Florida to Continue Cracking Down on Illegal Gambling Houses

While we can’t predict the future, we don’t expect Florida to expand their casino offerings to include these gambling houses. More than anything else, the approval and regulation of them seems untenable. It may be easier, albeit not ideal, to investigate and shut them down as they pop up.

Until or unless Florida gambling laws change, we certainly expect these operations to continue. Gambling regulation has become a focus ever since sports betting relaunched in The Sunshine State. Most recently, Florida pushed certain daily fantasy sites out of the market after deeming their pick ‘em games a form of unlicensed sports betting.

Make no mistake, this isn’t a perfect approach. But there probably isn’t a perfect approach. Even if the Florida Gaming Commission and law enforcement entities are granted endless resources, there will always be illegal gambling operations. State officials and investigators can only help to limit the issues and enforce laws in a way that discourages future transgressions.

Concrete legislation that’s more punitive than the current laws may help, too. But that’s something that’ll need to be addressed at the next round of legislative meetings. And that’s assuming it’s considered a priority at all.

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