Florida regulators warn illegal casinos are widespread, call for tougher penalties and resources

Ross Marchman, executive director of the Florida Gaming Control Commission, told the Regulated Industries Committee on Oct. 12 that illegal casinos and imported, tampered slot-style machines are operating across Florida and causing a range of harms from consumer loss to violent crime.

Marchman said the commission has received 6,860 complaints through its public portal since February 2022 and responded to about 2,000 complaints in the most recent fiscal year. "These illegal casinos present a target rich environment," he said, adding that his agency has run 88 operations and seized thousands of machines and millions in currency since it began enforcement work.

The commission’s presentation included photos of storefront operations and a Miami-area warehouse that Marchman said contained roughly 1,000 machines, was used to program and distribute equipment statewide, and required repeated semi-trailer loads to clear. Marchman described machines called "fish tables" and other devices that he said operate unlike lawful machines, with rapid automated wagering and little or no payout. "When we crack these things open, they're not awarding money," Marchman said.

Why it matters: Marchman and testifying attorney Daniel McGinn told the committee that the current statutory penalties for illegal gaming are insufficient to deter operators. Under the statutes the commission cited, many gaming offenses are second-degree misdemeanors; possession of a slot machine and hosting an illegal gaming establishment carry misdemeanor penalties that, the commission says, do not match the scale of associated criminal activity.

Marchman gave the committee specific figures: the commission’s regulated side processes 14,802 licenses, the agency’s fiscal-year budget is $33,900,000, and the commission currently maintains 46,892 square feet of climate-controlled storage for seized machines at a reported cost of $805,739 for the year (about $19–$20 per square foot). He said the commission is seeking another roughly 40,000 square feet of storage and has 15 sworn agents in the field.

Operation details and harms: Marchman described Operation Fool's Treasure, a multi-county probe that led to seizures and arrests. For that operation he reported 46 slot machines seized, nearly $1 million in currency, and six arrests. He also said, across the commission’s enforcement work, there have been about 4,500 illegal machines seized, almost $10 million in currency seized, $1.75 million in vehicles, $500,000 in jewelry, 90 arrests, 63 firearms, and other contraband; he added that investigators encountered drug trafficking and what he described as human trafficking in some locations and that five security guards have been murdered in connection with illegal operations since the commission began enforcement.

Legal distinction and confusion: The presentation stressed the statutory distinction between lawful "amusement" machines and unlawful slot machines. Marchman summarized the test as whether the player has "complete control of the outcome" (amusement machine) versus wagering with elements outside the player's control (slot machine). He said the law includes a rebuttable presumption that a device that "looks like" or "plays like" a slot machine is a slot machine, and noted existing statutory references discussed in testimony.

Enforcement limits and recommendations: Multiple senators, including Vice Chair Pizzo, asked about online/offshore wagering and statutory tools. Marchman said the commission had issued cease-and-desist letters to online operators and flagged overseas offshore sites as a distinct enforcement challenge. He told the committee the governor’s budget proposed $3 million for the commission, including $748,000 for technology, $225,000 for staff and about $2.1 million for additional warehouse space. Vice Chair Pizzo said he would prefer more funding for cyber and investigative talent rather than warehouse space and urged changing statutes to elevate penalties so prosecutions could reach felony-level financial charges.

Attorney Daniel McGinn, speaking for himself, urged legislative action to close enforcement gaps. He cited the Gator Point case that reached the District Court of Appeal as clarifying the legal definition of slot machines and warned that the current enforcement regime allows operators to be arrested, post bail and resume activity. "The lack of enforcement because of the statutory scheme leads to the same actors constantly doing this," McGinn said.

Commission and community resources: Marchman said the commission maintains a public complaint portal and will accept anonymous tips. He said the agency has worked with local sheriffs' offices and federal partners on multiagency investigations and that because criminal prosecutions and appeals remain pending, prosecutors advised the commission to retain seized machines and parts as evidence rather than destroy samples.

What’s next: Committee members pressed for clarification on municipal code enforcement and landlord liabilities, and discussed whether manufacturers could be restricted from shipping machines to locations that are not among the 14 licensed slot sites Marchman identified (8 state-licensed and 6 Seminole-operated). Marchman said his agency can provide guidance and a petition for declaratory statement is available for businesses seeking formal, binding Commission guidance, but he said distributors and sellers commonly know they are operating illegally and have not sought that process.

Marchman closed by asking legislators to consider statutory changes and additional resources to elevate penalties and expand investigative capacity. "Without changes in the law, without raising these to felonies, this is going to continue," he said.