Gambling in the USA
Botched Illegal Gambling Case Prompts Lawsuit Against Prosecutors
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
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
Caesars Entertainment announced that the Caesars Sportsbook Mississippi app is accepting mobile sports bets at Harrah’s Gulf Coast in Biloxi, Mississippi. Sports fans 21 and older who are interested in wagering on sports via mobile devices can download the Caesars Sportsbook Mississippi app to register and deposit statewide but must be physically present on-property at Harrah’s Gulf Coast to wager.
The Office of Lottery and Gaming (OLG) has announced that FanDuel’s sports betting app and website has officially launched. This development will introduce FanDuel’s sports wagering platform to District residents and visitors, completely replacing the current GambetDC sports betting app and website.
eCOGRA has been officially authorised by the Secretaria De Prêmios e Apostas (SPA) to operate as a certifying entity for betting systems, live gaming studios and online games in Brazil. This announcement marks a significant milestone as eCOGRA continues to extend its international offering of iGaming testing, inspection and certification (TIC) services in regulated markets across the globe.
Jennifer Shatley, a recognised expert in the field and a highly sought speaker and advisor, has joined the Responsible Online Gaming Association (ROGA) as Executive Director. Shatley has had 25+ years worth of experience, working closely with the treatment community, academics, researchers, government bodies, state councils and gaming industry representatives to promote responsible gaming.
Odditt, a leading provider of innovative sports betting data, tools and analytics, has appointed Elaine Milardo as its new Chief Technology Officer (CTO). With over 25 years of experience in the data industry and key roles at DraftKings and Vistaprint, Elaine brings a wealth of expertise to Odditt’s growing team.
Partnerships
Trustly, the global leader in Open Banking Payments, and Light & Wonder, the leading cross-platform global games company, are bringing cashless, in-person deposits to casino floors with Light & Wonder’s cashless solution, RAPIDPLAY. Building on Trustly’s success with guaranteed payments in online sports betting and iGaming, Trustly will deliver the same seamless, quick and secure online payment experience to the physical casino floor.
Fintech company Sightline has entered into an exclusive partnership with compliance and anti-fraud technology solutions leader GeoComply to bolster the security and efficiency of digital transactions within the regulated gaming industry. Sightline will integrate GeoComply’s cutting-edge IDComply identity verification solution as well as GeoComply’s compliance-grade geolocation tools across its comprehensive suite of digital payment solutions for land-based casinos and online gaming operators.
BetMGM has announced a partnership with GameCode, a distinguished iGaming company focused on the North American market. The partnership includes the launch of Boom Boom Boom, HammerCash, Gold Gold Gold and Super3 series which are now live at BetMGM in Michigan and New Jersey through direct integration. BetMGM plans to offer GameCode’s full portfolio of games in all jurisdictions where the operator’s iGaming platform is live pending regulatory approvals.
SCCG Management has announced a joint venture investment with Numb3rs, an innovative all-in-one payment solution provider built for gaming operators. The partnership aims to transform the gaming sector by integrating Numb3rs’ proprietary tech stack, ECRYPT, into the marketplace, thereby offering a comprehensive suite of payment processing solutions.
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
FanDuel Group, the premier online gaming company in North America and an Official Partner of Churchill Downs Inc., announced five time Entertainer of the Year Luke Bryan and Grammy award-winning R&B singer Ne-Yo as the headlining performers at FanDuel’s inaugural Kentucky Derby Party. The exclusive, invite-only event will take place on Friday, May 3 at Paristown Arts and Entertainment District in Louisville, Kentucky from 7:00 PM to 12:00 AM.
TPI, a leading provider of innovative player communication solutions for the casino industry, has appointed Joe Tingson as its new Vice President of Customer Success. With his unparalleled dedication to his customers, Joe will play a pivotal role as a leader for our digital Customer Success and Product teams.
PrizePicks, the largest daily fantasy sports operator in North America, has announced plans for its new 33,000 square foot Atlanta Headquarters, which will be located in the Star Metals Building in Midtown Atlanta. The company plans to grow its workforce by 1000 new jobs over the next seven years, the economic impact of which will be $25M to the state of Georgia.
Century Casinos Inc. has announced that it opened its hotel in Cape Girardeau, Missouri, The Riverview. The Riverview is a 69 room, six-story building with 68,000 square feet that is adjacent to and connected with Century Casino Cape Girardeau. The project cost $30.5 million and was financed with cash on hand.
Churchill Downs Incorporated (CDI) has announced the opening of Terre Haute Casino Resort in Terre Haute, Indiana. The $290 million investment includes a casino floor with 1000 slot machines, 36 table games, and a state-of-the-art sportsbook. The 400,000-square-foot entertainment venue also features regionally inspired bars and restaurants including: Four Cornered Steakhouse, Rockwood Bar & Grill, The Soda Shoppe, Crossroads Center Bar and High Limit Bar.
Bragg Gaming Group Inc., a global B2B gaming technology and content provider, announced that Chief Financial Officer (CFO), Ronen Kannor, has notified Bragg’s board of directors (Board) that he will resign from his position to pursue other career opportunities, effective June 3, 2024. The Company confirms that the search for a replacement CFO has commenced.
Partnerships
EQL Games has partnered with global aggregation leader and NeoGames company, Pariplay, to provide the Virginia Lottery, through an agreement with NeoPollard Interactive, with a series of eInstant iLottery games for their industry-leading digital platform.
JACK Entertainment LLC announced the selection of Konami Gaming Inc.’s SYNKROS to power industry-leading systems technology across its 1.5 million square feet of casino entertainment space. The Ohio-based gaming operator’s portfolio includes a combined 2600+ gaming machines and 85 table games at JACK Cleveland Casino in downtown Cleveland, and at JACK Thistledown Racino, located approximately 10 miles to the southeast.
PrizePicks, the largest daily fantasy sports operator in North America, announced that the company has reunited with the Atlanta Braves as the club’s Official Daily Fantasy Sports Partner for the 2024 season. The partnership extends a longstanding relationship that dates back to 2020, with the two Atlanta-based companies continuing to work together on unique opportunities for their dedicated fans.
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
International Game Technology PLC (IGT) announced that it will showcase its performance-focused portfolio of games and solutions for tribal casinos at the Indian Gaming Tradeshow & Convention (IGA) 2024, April 9-11 in Anaheim, Calif. Under the theme “We’ve Got Game,” IGT’s booth #536 will feature a compelling array of gaming solutions designed to engage players and drive growth.
Caesars Sportsbook announced its receipt of the prestigious RG Check accreditation from the Responsible Gambling Council (RGC). The certification includes an assessment of Caesars Sportsbook’s commitment to Responsible Gaming, including areas such as player and Team Member education, public awareness advertisements and funding for organisations dedicated to Responsible Gaming research, awareness and education.
Veriff, a global identity verification (IDV) provider, announced the appointment of Jeffrey Guy as President and COO. Jeffrey brings a wealth of leadership experience at technology companies in driving profitable growth and expanding product portfolio. Before Veriff, he was Chief Operating Officer at DigitalOcean, a publicly traded cloud computing platform provider.
GAN Limited announced that Mr. Brian Chang has recently been named the Company’s Chief Financial Officer. Mr. Chang had previously been serving in an interim capacity. Mr. Chang will be focused on guiding the Company towards a timely closing with Sega Sammy Creation Inc. (Sega Sammy).
Partnerships
The Commerce Casino & Hotel, home to the largest poker room in the world, has announced an exciting partnership with the richest, most prestigious and longest-running poker series – the World Series of Poker (WSOP). This collaboration signifies a pivotal moment for the poker community, bringing together two powerhouses to elevate the poker experience for players and fans worldwide.
BetRivers, powered by Rush Street Interactive, a leading US-based online betting and gaming company, has announced its partnership as the title sponsor for the upcoming NASCAR Xfinity Series Dash 4 Cash race at Dover Motor Speedway. The BetRivers 200, set for Saturday, April 27, is being undertaken with the Delaware Lottery and marks the beginning of a thrilling new chapter in NASCAR history, as RSI commits to the long-term support of this top tier sporting event.
Elys BMG Group Inc., an interactive gaming and sports betting technology company, announced the completion of its sportsbook installation at The Ugly Mug restaurant and bar situated at 723 8th St SE, in Washington, DC. This collaboration underscores Elys’ commitment to providing unparalleled sports wagering experiences for small and local businesses across America.
SCCG Management has announced a strategic partnership with mkodo, a leading technology provider in the iGaming space. This collaboration is set to distribute mkodo’s innovative geolocation product, GeoLocs and other leading solutions across the US and key global markets, including Brazil, leveraging SCCG’s robust market presence and industry expertise.
Prove Identity Inc. announced a strategic partnership with BetMGM, a sports betting and iGaming leader, to enhance the security and user experience for BetMGM customers through the cutting-edge Prove Pre-Fill identity solution. Prove Pre-Fill accelerates digital consumer onboarding by up to 79% and is used by more than 1000 businesses globally across diversified industries, including 9 of the top 10 banks.
Speechless Announces Hybrid License, Giving Actors Greater Control Over Their AI-Generated Voices
Oddin.gg has entered into an exclusive multi-year data partnership with premier esports tournament organizer, PGL
DATA.BET offers streaming videos collaborating with Bayes Esports
ACR POKER’S NEXT HIGH STAKES ADVENTURE COMES TO STUNNING MONTENEGRO WITH LIFE-CHANGING PAYOUTS
Barcelona will take ‘extraordinary ICE to another level’ – predicts safer gambling expert
Endorphina releases its newest title – Jolly Queen!
Kambi Group’s AI-powered trading division Tzeract enters into Bet Builder partnership with European operator kwiff
Crypto Casinos Review – Exploring the Crypto World
1Stop Translations Partners with Suss Ads
IGT Announces Executive and Board Leadership Changes
The Nomination Committee’s Proposal of Catena Media’s Board of Directors at the Annual General Meeting 2024
Nolimit City Celebrates South Africa Debut
Gaming Americas Weekly Roundup – March 18-24
EveryMatrix accelerates LatAm growth with Peru market accreditation
VGCCC Fines Bookmaker MintBet $100,000 for Repeat Breaches of its Responsible Gambling Code of Conduct
SOFTSWISS Obtains Firstly Issued B2B Tobique Gaming Licence
-
Industry News7 days ago -
Industry News6 days ago
Leading online slot developer announces launch of Snoop’s High Rollers which will go live exclusively with popular crypto sportsbook and casino
-
Australia6 days ago
VGCCC Fines BlueBet AU$50,000 for Gambling Advertising Breaches
-
Latest News6 days ago
Booming Games Establishes Strategic Partnership with Danske Spil
-
Industry News6 days ago
IDnow Bridges the AI-human Divide with New Expert-led Video Verification Solution
-
Latest News4 days ago
Evoplay strikes distribution agreement with Light & Wonder
-
Compliance Updates6 days ago
MGA: Updated Non-Profit Tombola and Lottery Application Requirements
-
Industry News6 days ago
Europe Sports Betting Market Size, Share & Trends Analysis Report 2024-2030 Featuring Bet365, William Hill, Betfair, Paddy Power, 888sport, Bwin, Unibet, Ladbrokes, MGM, and Betsson
