Illegal casino network busted in $14M California case 1o322f
2 Min Read Three California-based gaming company owners it to operating an illegal gambling business that brought in more than $14 million from a series of unlicensed gaming terminals installed in internet cafes in California and Arizona. 142a1p
The plea agreements from the U.S. Attorney’s Offices for the Eastern Districts of California and Arizona marked the end of many years of investigation into SweepsCoach, an operator based in El Dorado Hills.
Prosecutors stated that the illegal establishment began in 2012 and continued until 2017. During this period, the company installed video slot-style gaming machines, allowing individuals to purchase credits and subsequently cash out their winnings.
How SweepsCoach operated the illegal network 5qq6z
SweepsCoach used gaming terminals that simulated the appearance and operation of legal slot machines, but they lacked the necessary oversight and proper licensing.
The three individuals responsible for this – James Mecham, Kurt Stocks, and Heidi Edwards – set it up and ran the scheme for five years, generating a huge profit of $14 million.
An investigation with three major agencies brings the case to an end 5q4t5g
The IRS, FBI, California Franchise Tax Board, and the California Department of Justice’s Bureau of Gambling Control all investigated this case, and it was their t efforts that resulted in a plea deal. It ultimately led to the arrests and the end of this fraudulent SweepsCoach operation.
The defendants are scheduled to be sentenced in October, and each could face up to five years in prison and a fine of up to $250,000.
A warning to gray-market operators 1q3q63
This case serves as a warning to others in the industry about working in legal gray areas.
Because SweepsCoach exploited unregulated digital platforms and physical points of access by modelling their establishment under a false ‘sweepstakes cafes’ model, they needed to face the consequences.
Prosecutors reiterated that companies offering gambling-like experiences must adhere to regulations established for safety, including licensing, transparency, and consumer protection laws. A spokesperson for the U.S. Attorney’s Office has stated:
“This prosecution is yet another example of our commitment to bringing to justice those who profit from illegal gambling operations, whether the bets are placed online or in brick-and-mortar casinos.”
Looking ahead 4f65s
The sentencing in October will be the final chapter in a case that highlights the importance of maintaining strict legal boundaries in this industry and demonstrates that regulators will continue to clamp down on those who fail to implement the necessary measures.
For gaming operators, the message is clear: innovation and profit cannot come at the expense of compliance and player protection.
