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How feds took down an illegal Indiana online gambling ring that included bookies and enforcers
Over 150 law enforcement officers recently busted an illegal online gambling ring in northern Indiana. See the details on the ring, which included old-school bookies, offshore websites, and violent enforcers.
Authorities recently busted an online gambling ring in northern Indiana that resulted in the arrests of 22 individuals. While the ring included offshore websites, it was mostly an old-school operation that relied on bookies, credit lines, and enforcers. Those who couldn't pay their lines of credits were subject to harassment and threats.
Inside "Operation Porterhouse Parlay"
Over 150 authorities across the FBI, Indiana Gaming Commission, and IRS worked together to take down the illegal gambling ring. They dubbed their efforts Operation Porterhouse Parlay because a steakhouse was a main front for the criminals.
Law enforcement officers learned that the ring consisted of a complex network of bookmakers, enforcers, online websites, and local businesses. Their investigation uncovered that the operation spanned multiple states outside Indiana, with defendants also being arrested in California, Florida, Illinois, New York, and Puerto Rico.
A federal indictment out of the US District Court of Northern Indiana names Dean "Gem" Gialamas and James "Jimmy the Greek" Gerodemos as the operation's leaders. Gerodemos has a prior record, serving six months in jail for dealing with explosive materials without proper licensing.
Details on how the illegal gambling ring worked
At the heart of the unlawful Indiana gambling ring were the websites GardenCityBets.com and ABCWagering.ag. Unlike licensed and safe online casinos, for example, these offshore gambling sites operated without state regulations or protections.
Bookmakers convinced bettors to sign up through the sites by offering large lines of credit. In some cases, the lines could reach upwards of $50,000.
Bookies received 25% commissions from losing wagers. This is quite a bit higher than the standard 10–15% vigorish taken at regulated betting apps.
The 25% vig would work out to around a 6% casino house edge, making those bets much worse propositions than casino games online like blackjack (0.5–1% house edge), baccarat (1.06%), and European roulette (2.7%).
Enforcers were hired to intimidate and harass individuals who didn't pay their debts. In one instance, an enforcer threatened to visit and potentially harm a gambler's daughter while she was attending Valparaiso University.
The network used legitimate Indiana-based businesses like Gino's Steakhouse in Merrillville and Hobart in Paragon to launder gambling earnings, pay members, and move funds.
The investigation isn't over yet
The multi-agency investigation spanned from 2021 to 2026 before the arrests happened. According to US Attorney Adam Mildred, investigations are still being conducted.
"The law enforcement team will investigate any additional crimes revealed by the evidence and any additional subjects who might have participated," says Mildred.
The 22 defendants involved so far face one or more charges relating to the following:
- Money laundering conspiracy – up to 20 years in prison
- Extortionate debt collection – up to 20 years
- Hobbs Act extortion – up to 20 years
- Operating an illegal gambling business – up to 5 years
- Transmission of wagering information – up to 2 years
Plenty of safe gambling options available to avoid underground rings
The growing number of regulated online gambling markets in the US is helping cut down on operations like the one recently busted in Indiana.
For example, states like Michigan, New Jersey, West Virginia, and Pennsylvania offer legal and licensed online casinos. Maine online casinos will also be coming later this year.
If you're looking for a legit gambling site, you might try BetMGM Casino, which is currently available in MI, PA, NJ, and WV. If you sign up at BetMGM with the SPORTSLINE2500 promo code, you'll qualify for a 100% deposit match up to $2,500 in casino credits plus 100 bonus spins.
