HARRIS COUNTY, TX – On a February afternoon, 2 Investigates showed up to a North Harris County strip mall.
Minutes earlier, deputies raided what law enforcement described as an illegal gaming room operating in plain sight. The operation to shut down the room ended quickly, as one person was arrested and more than 80 gaming machines were seized. The scene was littered with evidence, including cash and a firearm.
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However, what 2 Investigates uncovered was a bigger component after the raid: this was not a new location.
“We’ve been here a couple of times,” said Lt. Jeffrey Lee with Harris County Constable Precinct 4, referring to the same location being raided in September of last year.
Law enforcement officials, from investigators to prosecutor, we spoke with over the course of our investigation say these operations have become increasingly common across the Houston area and Texas.
“It’s extremely common. We run these operations numerous times,” Lee said.
Why authorities say these operations matter
Every member of law enforcement, from the courts to the streets, we spoke with during our months-long investigation made it clear that illegal gaming rooms create more than just gambling concerns.
“At its base, these gaming operations prey on the vulnerable members of our community-those on a fixed income, older people-promising these huge payouts that never materialize,” said Lee, who went on to add, “At its wider angle, these are funding operations for much more serious criminal enterprises like human trafficking, drug trafficking, and things like that.”
Criminal defense attorney Rick Detoto, who has experience with these cases, said the locations for these rooms can also become magnets for violent crime
“They are targets.” Detoto went on to add, “There is a lot of cash there, their security is minimal at best, and they go in there and they rob them and people get shot and there are capital murders and aggravated robberies and all kinds of stuff that come out of those game rooms.”
RELATED: Houston police raid Lucky J Social Club in Midwest Houston, arrest several in illegal gambling bust
In February, an illegal game room in Southwest Houston was the site of the shooting death of a security guard during a robbery.
The “8-Liner” loophole
At the center of the gaming controversy are machines commonly known as “8-liners.” These are not unfamiliar machines for Texans, as many can be found inside gas stations, convenience stores, or small strip mall businesses. Under Texas law, certain gaming devices may legally operate if they are considered entertainment-only machines and do not provide illegal cash payouts. In some cases, stores may offer small prizes or store credits instead.
However, critics and elected leaders have asked for clarification from the state, saying some operators exploit a gray area in the law centered around whether a machine is considered a “game of skill” or a “game of chance.”
What is the difference between a game of skill and a game of chance?
As Detoto explained, “A game of chance [is] you press a button and there is a computer program that randomly picks the numbers or the fruit or whatever and you win, compared to a game of skill where it’s based on memory or perception or your timing, where you are kind of playing a game and you have to remember things. That’s the loophole that these people are exploiting, and it’s allowing some of these games to be legally put into these stores.”
Investigators say some operators allegedly go beyond the legal boundaries by offering cash payouts either privately or openly. 2 Investigates found one machine advertising as much in Fort Bend County.
Detoto said the machines are becoming more common throughout everyday neighborhoods, including his. “I’ve started to notice them every time I get gas,” he said. “I go in to get a Coke or something to drink, water-there are three 8-liners there that weren’t there before.”
Raids, auctions, and recycled machines
Authorities say shutting down illegal game rooms can become expensive for taxpayers due to investigations, raids, manpower, and evidence storage. However, another issue emerged during our investigation: many confiscated machines are not destroyed after they are seized. Instead, there are law enforcement jurisdictions that auction them off.
Investigators confirmed to us that some of those machines seized by other agencies eventually make their way back into circulation because they’ve been made available again, “We do see reintroduction of machines and the equipment that come from these game rooms back in again,” Lee said.
How did Detoto describe the system? “It’s a revolving door of law enforcement seizing the machines, waiting until a case gets resolved, selling them, making a profit for the asset funds, and doing it over again.”
Multiple sources interviewed for this story questioned whether current enforcement efforts are actually deterring illegal operations.
Detoto said criminal prosecutions tied to 8-liners are relatively rare.
“I’ve never seen, in my experience, anyone go to jail for these 8-liners.” The Houston-based defense attorney added, “The prosecutors don’t have the time to deal with these cases. They are not the most important case on their docket.”
Lee agreed that stronger oversight and penalties may be needed: “There is room for improvement with regards to the oversight, the laws, and the stuff that concerns these gaming rooms-that we could actually enact some stiffer penalties to discourage this behavior.”
When 2 Investigates asked whether Texas lawmakers need to do more, Lee responded: “We would like to see some improvements, yes.”
Calls for legislative change
Texas State Senator Bob Hall, who represents Senate District 2, said the current system leaves too much room for abuse. “We need to do more to make sure that we can shut down and stop the operation of the illegal game rooms,” said Hall, who added, “There is no question about that.”
During an interview at his Dallas-area office, Hall acknowledged that changing the law could prove to be difficult. “It will be a challenge because it will depend on our local law enforcement doing its job the way it should be done,” Hall said.
Bottom line for Hall regarding a problem hiding in plain sight? “There is no reason for a gambling machine to exist in Texas.”