Feds Charge 16 Texans in Massive Houston Gambling and Money Laundering Bust

HOUSTON, Texas (KPEL News) — Federal prosecutors have brought the hammer down on what they say was one of the largest illegal gambling and money laundering operations ever uncovered in Texas.

A total of 16 Texans now face federal charges after authorities seized millions in cash, luxury assets, and thousands of gambling machines in a sweeping takedown of a Houston-based criminal network.

Dubbed “Operation Double Down,” the bust centers on Nizar Ali of Richmond, who is accused of masterminding a massive underground gambling ring across the Houston area. Prosecutors say his operation funneled more than $22 million through illegal game rooms that operated under the radar—sometimes literally in buildings nicknamed “El Portal” and “Yellow Building.”

But the case goes far beyond illegal slot machines.

According to the U.S. Attorney’s Office for the Southern District of Texas, Ali allegedly tried to bribe an undercover police officer to the tune of more than $500,000 in an effort to shield the operation from law enforcement scrutiny. He now faces 32 separate federal bribery charges, each carrying up to 10 years in federal prison, along with conspiracy and money laundering charges.

Rolexes, Luxury Cars, and Firearms Seized

During the raid, authorities seized a staggering collection of assets, including more than 2,000 slot machines, 100 Rolex watches, luxury vehicles, eight firearms, and over $16 million in cash and assets tied to the criminal enterprise. Prosecutors say the game rooms operated day and night across Houston, generating enormous profits while dodging state and federal gambling regulations.

A total of 11 defendants have been taken into custody so far, while the remaining five are expected to surrender in the coming days.

A Message to the Underground Gambling Scene

The scale of this operation and the scope of the charges send a clear message: federal law enforcement is not looking the other way on illegal gambling in Texas. These kinds of backdoor operations not only undermine legitimate businesses, but they’re often used to hide deeper criminal activity—from tax evasion to drug trafficking and organized crime.

With more than 700 officers from 18 agencies involved in the investigation, the Justice Department has made it clear that it’s willing to deploy serious manpower to dismantle these operations—and anyone else running a similar scheme should take notice.

U.S. Attorney Alamdar Hamdani summed it up plainly: “This case shines a light on the clandestine world of illegal gambling in Houston.” And now, that world just got a whole lot smaller.