Rahulkumar D. Patel, an Indian citizen residing in Washington state, has pleaded guilty to running an illegal gambling business in Missouri that generated over $7 million.
Along with eight other Indian nationals, Patel was indicted in Springfield, Missouri, last year. He admitted that he and his co-conspirators ran illegal gambling businesses under the guise of internet amusement arcade games, skill game arcades, and adult arcades.
He pleaded guilty to one count each of conspiracy to commit wire fraud, conspiracy to operate an illegal gambling business, and conspiracy to commit money laundering. The charges carry maximum prison sentences of 20, five, and 20 years, respectively.
Big Wins at Illegal Arcades
The group operated six arcades across Missouri:
- Big Win Arcade #1 at 1928 S. Glenstone Ave., Springfield
- Big Win Arcade #2 at 1135 E. Commercial St., Springfield
- Spin Hitters at 838-840 S. Glenstone Ave., Springfield
- Vegas Arcade at 615 S. Scenic, Springfield
- Spin Zone at 2331 E. 7th St., Joplin
- Vegas City Arcade at 16585 Missouri Highway 13, Branson West.
Prosecutors say the illegal business generated $7,696,085 in gross proceeds and then conducted various financial transactions to launder those proceeds.
The U.S. Attorney’s Office for the Western District of Missouri announced Patel’s plea in a press release on Wednesday.
Crackdown Cleans Up Neighborhoods
Missouri has been tackling illegal gambling in the state. In February, a federal judge ruled that the “no-chance” slot machines found in gas stations, bars, and restaurants are illegal gambling devices under state law.
While games of skill are legal in the state, games of chance are prohibited. The shutdown of the six locations operated by Patel’s group has improved the quality of life for local residents, said Greene County Prosecutor Dan Patterson.
“These were businesses that were basically operating as casinos, and they were affecting the quality of life of their neighbors in those areas of our community,” Patterson stated. “I believe we have seen a change since this investigation took place.”
Missouri Lawmakers Regret Legalizing Gambling
In addition to games of skill, Missouri legalized sports betting at the end of last year. However, initial results have not generated the expected revenue.
In the first two months since legalization in December, operators’ expenses exceeded revenue. In total, the state has collected just $3.8 million in sports betting tax revenue this year, well short of the target of over $4 million per month.
“It doesn’t necessarily match the commercials that got this passed, does it?” said Sen. Rusty Black in response to the disappointing figures.
