After an 18-month investigation, state police on Friday arrested two men and six women bartenders for their alleged involvement in running a video gambling ring in the New Kensington area.
Police tied Gary Golden, 57, and Duane Guida, 52, both of Arnold, to the 156 video gambling machines that police seized in a July 2000 raid at 37 Valley bars and other establishments.
Information gathered at the 2000 raid led police to solidify their case against Golden and Guida, who allegedly placed the video gambling machines in the establishments and made weekly pickups of the money generated by people playing the machines.
During the investigation, police went undercover and even rooted through garbage to determine who owned the video gambling machines and whether those machines were illegal.
Video poker machines are illegal only if a player receives money for winning. Sometimes the machine has a "knock-off" switch that records points or wins.
Police said Guida worked closely with Golden in his operation. The six women who are charged were bartenders at Bailey's Tavern along Main Street in New Kensington, said investigating officer Trooper Paul King. That makes them part of a corrupt organization, King said.
Police said Golden and Guida owned Bailey's Tavern. Their company once was known as High Fives Inc. and also BALD Inc.
Police have said illegal video gambling machines can be very profitable. If a business owns three machines and agrees to split 50/50 with the vendor, they can make as much as $45,000 per year of untaxed money, state police have said.
Money laundering also is an issue, police said.
According to court papers, Golden and Guida made large purchases at Sonny's Sales and Services in Sharpsburg, which sells vending machines and video slot machines.
In 1998, Guida and Golden paid Sonny's $50,000. In 1999, they paid Sonny's about $61,000. In 2000, they paid Sonny's about $34,000.
In this particular gambling ring, police said that at least part of these annual totals were "dirty" money from the gambling operation that were being laundered by buying machines or machine parts at Sonny's Sales and Service.
Golden's arrest for allegedly being involved with a large criminal operation is not his first.
In 1982, Golden and three others were arrested after they had bought $46,000 worth of cocaine from an undercover FBI agent, according to the state Crime Commission.
Golden ran a marijuana and cocaine cartel in the early '80s, according to Crime Commission documents.
A federal judge sentenced Golden to 29 years in prison after Golden was caught in 1982.
He was released in April 1994 and is on parole until 2009.
How gambling probe started
The investigation into Golden's and Guida's alleged video gambling ring began in December 1999, when police served a search warrant at Twins Market along Fifth Avenue in Arnold.
Police said they learned that learned Golden owned an illegal electronic gambling machine there and that he made the weekly money collections from the machines, according to court records.
From there, police went undercover. They began to associate with Golden, first at the El Paso bar and shortly after at Bailey's Tavern, both in New Kensington.
Police said Golden and Duane Guida were owners of Bailey's Tavern, which had illegal gambling devices, police said.
Police said they observed payoffs from the illegal gambling machines 48 times, made, they said, by Golden, Guida and bartenders. Police also said they saw Golden empty the cash from the machines.
Through further investigation - including interviews, search warrants and rooting through garbage outside Guida's Leishman Avenue residence - police determined that Golden, Guida and their companies High Fives and BALD bought the video gambling machines and placed them.
Police said they anticipate another 10 to 12 arrests soon.
Charges against Golden and Guida include corrupt organizations, dealing in proceeds of unlawful activities, criminal conspiracy to deal in the proceeds of unlawful activities, gambling devices and conspiracy/gambling devices.
Golden was also charged with controlled substance violations, because police said they found
9.6 grams of marijuana when they searched Golden's Wildlife Lodge Road residence in July 2000.
The six bartenders were charged with corrupt organizations, gambling devices and criminal conspiracy/gambling devices.
At 11:30 a.m. Dec. 13, Gary Golden and others are scheduled have their preliminary hearings before District Justice Frank J. Pallone Jr.
| The accused |
The following people were arrested Friday for involvement in an illegal video poker machine and money laundering ring.
