Illegal gambling ring busted after using Pokemon cards as payouts

EntertainmentPokemonbyNathan WarbyPublished: Nov 05, 2026, 11:51Screenshot via YouTube: KSAT NewsAdd as a preferred source on GoogleFollow on Google News

Police in Texas have busted an alleged illegal gambling operation that was using Pokemon and sports trading cards to pay out winnings instead of cash.

Pokemon cards have become increasingly valuable in recent years, with rare collectibles selling for thousands or even millions of dollars. However, authorities in San Antonio believe one group of businesses was taking advantage of their value for an entirely different reason.

According to police, customers who won money on gambling machines were instead handed valuable trading cards, which they could then exchange for cash at a nearby business.

The unusual arrangement came to light after officers raided seven locations on November 4, detaining 23 people and seizing hundreds of gambling machines.

Police uncover Pokemon card gambling scheme

Bexar County Sheriff Javier Salazar explained that the businesses, which operated under the name “777,” were allegedly attempting to get around Texas gambling laws.

Under state rules, certain gaming establishments are restricted in the value of prizes they can award. Rather than paying customers large sums directly, the businesses allegedly used Pokemon and sports cards as an alternative.

Winners could then take their cards to a neighboring store, which would purchase them for cash.

Speaking to the San Antonio Express-News, Salazar explained how customers could receive a card and sell it to collect their winnings.

“So here’s your sports cards that you won for gambling with us, you can go next door and sell this to them, and they’ll give you a couple of hundred dollars for it,” Salazar said. “We know what they’re doing, they’re trying to skirt the law, it doesn’t make it any less illegal.”