Kent man charged with over 100 counts in Florida illegal gambling case
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A 57-year-old Kent businessman pleaded not guilty to over 100 charges accusing him of running three illegal gambling operations in Florida, according to Palm Beach Circuit Courts.
Timothy Surgen is accused of using his Kent-based company, Surgen Enterprises LLC, to operate Las Vegas-style video slot machines at Treasure Island Arcade, Black Beards Super Game Room and Games N More in Florida, according to a probable cause affidavit filed in the courts.
Slot machines that pay out cash are prohibited by Florida statutes.
He pleaded not guilty to money laundering an amount of over $100,000, 120 counts of unlawful possession of a slot machine and two counts of keeping a gambling house.
What is Surgen Enterprises?
Surgen created Surgen Enterprises LLC in 2012, according to the Ohio Secretary of State's website. That same year, he opened a tanning salon in Akron.
He took Surgen Enterprises to Florida in 2018, when he filed it as a foreign limited liability company based of out Ohio, according to the Florida Division of Corporations website.
One year later in 2019, Surgen applied for a new business application under the Kent-based LLC to establish Treasure Island Arcade, according to the affidavit.
The application listed him as the president while the arcade had three employees and 50 machines in one room.
Games N More was established in 2022 by a former employee of Surgen, the affidavit explains. The arcade was listed as having 20 machines in one room with four employees.
Black Beards Super Game Room was also established in 2022 by the same former employee. It was listed as having four employees and 25 machines. This arcade closed in early 2023.
Palm Beach County Sheriff's Office launches undercover investigations
Palm Beach County Sheriff's Office conducted a months-long investigation that included undercover operations after they received a complaint about alleged illegal gambling in September 2022.
Eight undercover investigations involving multiple investigators took place from November 2022 to September 2023 across the three stores, according to the affidavit.
At each adult arcade, police observed armed guards and roughly 60 slot machines at Games N More and Treasure Island Arcade.
The affidavit explains how investigators used $580 of money allocated from the sheriff's office to use the video slot machines at each location to determine if the machines were illegal.
Agents were able to exchange slot cashout tickets for money and gift cards, which goes against Florida law, according to the affidavit.
Investigators accused Surgen of illegally generating roughly $304,000 of illegal money. About $140,000 was pocketed as laundered money while another $164,000 went toward funding the racket, according to the affidavit.
The State of Florida is expected to file additional charges against Surgen on Nov. 9, according to court documents.
