Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioAn investigation into a complaint about illegal lithium-ion battery charging by the Fire Department of the City of New York (FDNY) has led to the discovery of a hidden underground operation that includes an illegal gambling den, counterfeit luxury goods, and makeshift sleeping quarters.
The “potential death trap” was located beneath a massage parlor on Elizabeth Street in Manhattan.
Hazardous Conditions & Gambling Den Discovered
The FDNY stated that the surprise discovery occurred at 118 and 120 Elizabeth Street while its Bureau of Fire Prevention investigated reports of charging uncertified batteries on site.
While inspectors found the lithium-ion batteries, they also discovered unauthorized sleeping areas in the front and rear cellars of both buildings. The hallways, which were partitioned into single-room occupancy, were filled with mattresses, clutter, hot plates, and space heaters.
In one area, investigators found an illegal gambling den. There, inspectors discovered 17 illegal slot machines and a storage space filled with counterfeit designer bags and accessories.
None of the sleeping spaces had secondary exits. According to the FDNY, the maze-like layout combined with heavy clutter resulted in “severe life risks.” Additionally, the numerous lithium-ion batteries being charged in the cellar areas were considered a fire danger.
These types of batteries have caused numerous fires across New York City, some of which have been fatal.
Multi-Agency Enforcement Response
The discovery prompted the FDNY to request a multi-agency response. The New York City Police Department (NYPD) Vice Squad confiscated the slot machines and counterfeit goods. At the same time, the New York City Department of Buildings (DOB) issued a partial vacate order for the cellar spaces of both buildings.
The FDNY’s Fire Prevention Bureau issued two FDNY summonses. It also issued two criminal summonses to the owners or responsible parties of the properties.
FDNY Commissioner Robert Tucker described the scene as “a disaster waiting to happen.”
He added: “Illegal living conditions and unsafe battery charging can create deadly conditions for residents and for firefighters responding to emergencies… Every complaint we investigate has the potential to save lives, and this inspection was one of them.”
Legal Casinos Could Soon Arrive in New York
As illegal gambling dens like the one on Elizabeth Street continue to surface, New York City is moving closer to having legal full-scale casinos.
The state is currently in the process of awarding up to three downstate casino licenses. The licensing process is in the Community Advisory Committee (CAC) stage. A CAC for each of the eight applicants weighs in on public opinion to determine whether to advance them to the state’s Gaming Facility Location Board.
The public hearings round recently concluded. The CACs already rejected two applications, Caesars Palace Times Square and The Avenir, both located in Manhattan.
Expectations are that the state will announce the winning proposals by the end of the year. Most bids expect to take a few years to open. Still, one candidate, Resorts World New York City in Yonkers, promises a mid-2026 opening if selected.
