Gambling in the USA

Botched Illegal Gambling Case Prompts Lawsuit Against Prosecutors

Published

7 years ago

January 29, 2018

Botched Illegal Gambling Case Prompts Lawsuit Against Prosecutors

Reading Time: 4 minutes

Eight people who were the subject of one of the largest illegal gambling stings in Hawaii history are suing Honolulu Prosecuting Attorney Keith Kaneshiro and one of his top deputies, Katherine Kealoha, saying they committed retaliatory and malicious prosecution after one of the plaintiffs compared Kaneshiro to the mobster John Gotti on TV news in 2013.

Also named as defendants in the case are Vernon Branco, who was a lead investigator for the prosecuting attorney’s office in the gambling case, and the City and County of Honolulu.

Yoshimura is the lead plaintiff in the lawsuit, which was filed in U.S. District Court of Hawaii on Friday. He is the owner of PJY Enterprises, a company that used to distribute Product Direct Sweepstakes machines to arcades around Oahu.

Yoshimura had been named along with some of his co-plaintiffs in a 414-count criminal indictment in 2014 that was tied to the use of the sweepstakes machines as alleged gambling devices.

All the charges were eventually dismissed, however, after a series of missteps by the Honolulu Prosecuting Attorney’s Office, and in particular Kealoha, who was the head of the agency’s Career Criminal Division at the time, and Branco, who was the lead investigator on the case.

The allegations in the recently filed lawsuit stem from a series of police seizures of Yoshimura’s sweepstakes machines that began in September 2012.

According to the lawsuit, Kaneshiro, in cooperation with the Honolulu Police Department, seized 190 sweepstakes machines from a number of arcades throughout Oahu, from Ward Avenue in Honolulu to Waipio.

Yoshimura filed a lawsuit against Kaneshiro, HPD and its police chief, Louis Kealoha, over the seizures. The case eventually made it to federal court.

Yoshimura also took to TV to challenge Kaneshiro directly, saying among other things, that he believed he was on firm legal footing, and that he welcomed criminal charges.

“I’d like to publicly challenge Keith, to charge us or leave us alone and release the equipment he is holding,” Yoshimura told Hawaii News Now.

“I compare him to John Gotti wherein John didn’t like somebody he would go in and shoot up the place and destroy everything in the business and walk away hoping that’s the end of you. In this case, Keith comes in, takes our equipment and claims he’s doing it in conjunction with an ongoing investigation.”

Shortly after a federal judge ruled that the way the machines were being used constituted gambling, Kaneshiro’s office filed the indictment against Yoshimura and others charging them with gambling promotion, racketeering, possession of gambling devices and money laundering.

“I compare him to John Gotti wherein John didn’t like somebody he would go in and shoot up the place and destroy everything in the business and walk away hoping that’s the end of you.” — Plaintiff Tracy Yoshimura

But according to the lawsuit that indictment as well as subsequent attempts to convict Yoshimura and the other defendants were fraught with problems.

According to the lawsuit, Kealoha, through the testimony of Branco, presented knowingly false information to the grand jury to help secure the gambling indictments. Specifically, the lawsuit says they told grand jurors that Yoshimura owned game room and arcades that he, in fact, did not own.

The lawsuit also took issue with the fact that although numerous game rooms and arcades were raided by the police only a handful of the owners and cashiers were prosecuted.

In addition to allegations of selective treatment and retaliatory and malicious prosecution, the lawsuit targets Kaneshiro for negligent hiring, retention and supervision.

Kaneshiro had “a duty to the public to hire competent staff,” the lawsuit says. He failed in that responsibility, the lawsuit says, when he hired Kealoha and Branco.

The lawsuit says Kealoha was “ill-equipped” to handle the gambling case because of her inexperience taking on white collar crime and her lack of research beforehand. It makes a vague reference to “her health issues and other personal issues.”

Yoshimura’s attorney, Keith Kiuchi, said the case has cost Yoshimura and the other defendants hundreds of thousands of dollars over the years. Kiuchi said the fact that only people who challenged Kaneshiro in court after the machines were seized were the only individuals to get prosecuted by his office speaks volumes.

“The only businesses that had the nerve to challenge Kaneshiro in federal court are the ones that are being singled out,” Kiuchi said. “Those are the only businesses that were indicted.”

Representatives from the Honolulu Prosecuting Attorney’s Office were also unavailable.

Katherine Kealoha’s criminal defense attorney Cynthia Kagiwada could not be reached.

The lawsuit comes amid a growing U.S. Justice Department investigation into corruption and abuse of power within HPD and the prosecuting attorney’s office.

Yoshimura has been a witness for prosecutors in the case, saying that among other things Katherine Kealoha had provided the name of a confidential informant in the gambling case to his former defense attorney, Myles Breiner, as a way to curry favor.

Kealoha has since been indicted by a federal grand jury along with her husband, the former HPD chief.

Kaneshiro’s office has also been a target of the Justice Department’s corruption probe, which included the FBI executing a search warrant at the prosecutor’s office.

Kaneshiro, who was re-elected to another four-year term in 2016, says he’s testified before the federal grand jury that’s been investigating widespread corruption in Hawaii law enforcement, although he has refused to discuss his involvement.

Other high-ranking officials in his office, including First Deputy Prosecutor Chasid Sapolu, have also been seen at the grand jury, as has one of Kaneshiro’s closet advisors, executive assistant Carol Nakamura.

In 2017, a Civil Beat investigation found that at least one line of inquiry from the grand jury has to do with the purchase of the Honolulu Prosecutor’s Safe House, which is supposed to be a refuge for victims of domestic violence, sex assault and sex trafficking.

According to property records and other documents obtained by Civil Beat, the city purchased the property from one of Kaneshiro’s top campaign donors, real estate investor Donna Walden, for $5.5 million not long after she herself had purchased the property for $4.5 million.

Based on at least one grand jury witness account the deal was already in the works before Walden officially owned the building.

Source: CivilBeat.com

Gambling in the USA

Gaming Americas Weekly Roundup – November 11-17

Published

5 days ago

November 18, 2024

Niji Narayan

Reading Time: 2 minutes

Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

Golden Entertainment Inc. reported financial results for the third quarter ended September 30. The Company reported third quarter revenue of $161.2 million, net income of $5.2 million and Adjusted EBITDA of $34.0 million. In addition, on November 5, the Company’s Board of Directors authorised the Company’s recurring quarterly cash dividend of $0.25 per share of the Company’s outstanding common stock payable on January 7, 2025 to shareholders of record as of December 20, 2024.

Snoqualmie Casino has announced its rebranding to Snoqualmie Casino & Hotel, reflecting an exciting new chapter in the venue’s history as it embarks on a much-anticipated expansion. Set for completion in mid-2025, this project promises to elevate the guest experience, making Snoqualmie Casino & Hotel a premier destination for entertainment, relaxation and culinary excellence. The cornerstone of the expansion is the construction of a luxurious hotel, which will offer guests unparalleled comfort and stunning views of the Snoqualmie Valley and Mount Si.

Galaxy Gaming Inc., the world’s largest independent developer and distributor of casino table games and technology announced, at a special meeting of its stockholders held on November 12, 2024 (the Special Meeting), Galaxy Gaming stockholders voted to approve the Company’s acquisition by Evolution Malta Holding Limited (Evolution), Evolution AB (publ)’s wholly owned subsidiary. Galaxy Gaming will file a Form 8-K with the U.S. Securities and Exchange Commission reporting the final voting results of the Special Meeting.

Caesars Virginia has announced that its highly anticipated opening date will be Thursday, Dec. 12, 2024. The resort will welcome its first guests beginning at noon. Additional details on the opening festivities will be announced at a later date. Caesars Virginia is a 587,000 square foot casino resort with more than 90,000 square feet of gaming space.

Partnerships

NGX has entered into a strategic partnership with Sportradar, a global leader in sports integrity solutions, which collaborates with more than 180 sports federations and leagues. The agreement aims to support the Brazilian football federations of Rio Grande do Sul, Paraná and Pará, providing detailed reports to ensure the integrity of sporting events and combat fraud.

EvenBet Gaming has announced the launch of its advanced poker solutions in partnership with JugaMax, one of the largest and most respected casino operators in Paraguay. This strategic collaboration marks EvenBet’s debut in the Paraguayan iGaming market, solidifying the company’s expansion within Latin America. The newly established partnership enables the integration of EvenBet Gaming’s poker offering on the JugaMax platform.

Jackpocket, the leading lottery app in the US, and Barstool Sports announced a new collaboration naming Jackpocket as the “Exclusive & Official Digital Lottery Partner of Barstool Sports”. The deal with Barstool follows Jackpocket’s parent company, DraftKings, announcing a similar agreement with the media company in February 2024. This collaboration centers around the integration of Jackpocket in Barstool’s content. Fans can participate in the lottery alongside some of Barstool’s biggest names such as Dave Portnoy, Big Cat & PFT from Pardon My Take – the leading sports podcast in America, Wallo & Gillie from Million Dollaz Worth of Game and more.

Gambling in the USA

Gaming Americas Weekly Roundup – November 4-10

Published

2 weeks ago

November 12, 2024

Niji Narayan

Reading Time: 2 minutes

Latest News

PENN Entertainment and ESPN announced that account linking between ESPN BET and ESPN is now available for customers, creating an even more deeply integrated media and betting experience. By linking accounts, fans now have the ability to seamlessly track upcoming, live and settled bets within the ESPN app and on ESPN.com. With this product enhancement, ESPN BET will soon bring fans more personalised bets and timely promotions based on their favourite sports, teams, players and fantasy rosters.

Accel Entertainment Inc. has announced that it has completed the acquisition of 85% of the ownership interests of Toucan Gaming LLC and LSM Gaming LLC, two Louisiana-based route operators and owners of multiple licensed video poker establishments (collectively, “Toucan”), for approximately $40 million. The combined business will operate as Toucan Gaming throughout Louisiana and will be led by Stan Guidroz, an industry-leading gaming executive and current CEO of Toucan Gaming. Mr. Guidroz owns the remaining 15% of Toucan’s ownership interests and will lead the Accel team supporting Toucan’s continued growth.

INTRALOT S.A. has announced the undertaking of a new project between the British Columbia Lottery Corporation (BCLC), the sole lottery operator for the Government of British Columbia in Canada, and INTRALOT, its US subsidiary, for the provision of an online lottery platform. The project also includes the digitalisation of the existing land-based network. The solution will be based on the Player X platform, part of the Lotos X ecosystem, and adds to the company’s overall partnership with BCLC, which has been extended until 2028.

BetMGM Poker has become the third US operator to offer multi-state online poker. The company has merged its player pools in Michigan and New Jersey. Both states are a part of the Multi-State Internet Gaming Agreement, which allows online poker networks to share liquidity and players in participating markets. The two-state network went live Wednesday afternoon after morning maintenance.

Betsson Group has celebrated its success at the SBC Awards Latinoamérica 2024, winning two prestigious awards: Sportsbook Operator of the Year and Leader of the Year, which was awarded to Kevin Saliba, Commercial Director (Business Development) for Latin America. This marks the second consecutive year Betsson has earned the Leader of the Year accolade, following Andrea Rossi’s win in 2023 – an achievement that underscores Betsson’s consistent leadership in the region.

Partnerships

Play’n GO has announced a new operator partnership with renowned gaming brand Hard Rock Digital for their top-rated Hard Rock Bet online casino platform in New Jersey. The Hard Rock brand is synonymous with entertainment worldwide, and this partnership will see Hard Rock Bet players in New Jersey gain access to hit Play’n GO titles such as Piggy Blitz, Book of Dead and Rise of Olympus 100.

SCCG Management, a global leader in gaming innovation and advisory, has announced a strategic partnership with Chata.AI, a technology provider specialising in self-service, proactive analytics that enables businesses to access real-time insights without requiring extensive technical expertise. This partnership introduces Chata.AI’s technology to the gaming industry, providing operators with powerful tools to streamline decision-making and increase operational efficiency.

Gambling in the USA

Gaming Americas Weekly Roundup – October 28-November 3

Published

3 weeks ago

November 4, 2024

Niji Narayan

Reading Time: 2 minutes

Latest News

Elray Resources Inc. has announced a significant milestone in the company’s growth strategy. The company has completed the sale of proprietary technology to 180 Life Sciences Corp. (NASDAQ:ATNF), a NASDAQ-listed company in exchange for preferred stock convertible into a 40% stake in ATNF and warrants to purchase 3 million shares of ATNF common stock, the conversion/exercise of which is subject to stockholder approval. The technology stack contained within Elray’s technology package will assist ATNF in launching an iGaming Blockchain casino.

PrizePicks, the largest daily fantasy sports operator in North America, has announced that it has been awarded Daily Fantasy Sports Operator Licenses in Delaware and Missouri. The company will launch Arena, its innovative peer-to-peer fantasy sports contest, in both states. With these new state launches, Arena will now be available in 15 states across the US.

The Pennsylvania Gaming Control Board (Board) unanimously voted to renew the Category 2 stand-alone casino license of Wind Creek Bethlehem LLC, operator of Wind Creek Bethlehem casino in Northampton County. In making the decision, the Board determined that Wind Creek Bethlehem LLC had fulfilled the obligations under its previously approved casino operator’s license and therefore qualified to have its license renewed for an additional five-year period.

Aristocrat announced that the company was the first international slot and online technology company to be granted a Gaming-Related Vendor license by The General Commercial Gaming Regulatory Authority (GCGRA), the federal entity overseeing commercial gaming activities in the United Arab Emirates (UAE). This announcement grants Aristocrat the ability to provide the company’s land-based electronic gaming machines (EGMs) and online games and technology solutions to commercial gaming operators licensed by the GCGRA.

Partnerships

SCCG Management, a leading global advisory and consulting firm in the gambling industry, has entered into a strategic partnership with Slot Machines Unlimited, a premier provider of refurbished slot machines and gaming equipment. The partnership between SCCG Management and Slot Machines Unlimited leverages both companies’ strengths: Slot Machines Unlimited’s expertise in refurbished gaming equipment and SCCG’s deep industry insight, global network and strategic growth capabilities. The collaboration will enhance Slot Machines Unlimited’s international sales and service operations, ensuring gaming establishments worldwide have access to high-quality slot machines and support.

Galaxy Gaming Inc. has announced that the Galaxy Operating System (GOS) is now live on over 50 ships worldwide with Carnival Corporation & PLC, the world’s largest leisure travel company. Since the installation, tables powered by GOS have awarded over $5 million in jackpot payouts to players. GOS is the jackpot progressive system for all Carnival Corporation ships, including Carnival Cruise Line, Holland America Line and Princess Cruises. Launched in 2024, GOS is the next-generation game management system developed by the industry’s leading table game experts.

The hottest new game from Aristocrat Gaming, Phoenix Link, is now live on casino floors, with Yaamava’ Resort & Casino being the first in North America to offer the highly-anticipated game. As the next evolution of the international hit game, Dragon Link, Phoenix Link features player-favourite mechanics from top games with all-new themes, features and bonuses.

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