PALESTINE — Representatives of the Anderson County District Attorney’s office participated in a joint operation Friday, resulting in the arrests of multiple persons in the Dallas-Fort Worth Metroplex and the seizure of more than two dozen gambling machines locally.

Friday’s raid centered around Haltom City-based HEST Technologies Inc. which operates what company representatives refer to as “sweepstakes promotional systems.”

According to the felony charges filed against multiple HEST executives Friday, however, the company’s so-called “sweepstakes” systems constitute illegal gambling devices.

Anderson County District Attorney Doug Lowe told the Herald-Press that his agency seized 27 machines from six locations throughout Anderson County Friday.

The machines were manufactured and are managed by HEST Technologies.

“We’ve been doing this investigation for about 2 1/2 years,” Lowe said.

The multiple-year investigation was headed by the Texas Attorney General’s Office, with the Anderson County District Attorney’s Office and Tarrant County District Attorney’s Office also playing prominent roles. Other agencies participating in the investigation included the Tarrant County Sheriff’s Office, the Dallas Police Department, the U.S. Secret Service, the FBI’s Dallas and Tyler offices and the Dallas office of the Internal Revenue Service.

Assistance was also provided by the California Department of Justice, the Massachusetts’ Attorney General’s Office, the Massachusetts State Police and the Virginia Commonwealth Attorney’s Office in Virginia Beach, Va.

A press release issued by the Texas Attorney General’s Office indicated that federal and local law enforcement agencies executed search warrants at HEST’s headquarters and the residences of five of the company’s executives. The residence of the operator of an alleged charitable organization was also searched, according to the release.

The defendants face felony gambling, money laundering and organized criminal activity charges.

The Attorney General’s Office is expected to prosecute the cases in conjunction with the Anderson and Tarrant counties’ district attorney’s offices.

David Glickler, an assistant attorney general for the state, will serve as lead prosecutor.

Glickler said video sweepstakes promoters often attempt to circumvent anti-gambling laws by claiming to sell a lawful service — such as time at an internet care — that is used to induce gamblers to participate in an illegal electronic sweepstakes.

Lowe said the machines, which can be readily found in convenience stores and other locations throughout East Texas, are referred to by game promoters as “Donate Zones,” operating under the premise that proceeds will be donated to a charity.

In the case of HEST Technologies, the benefiting charity is considered to be Cedar Hill-based Skyeward Bound Ranch, according to authorities.

Authorities, however, have doubts about how large a chunk of the lucrative machines’ proceeds actually go to the ranch. Some have also cast doubts as to who and how many people are served by the organization.

“We understand it’s a very small percentage of what they take in that goes to the charity,” Lowe said.

Lowe said it is also unclear the business relationship between HEST and the owners of convenience stores and other businesses housing the machines.

Before taking a seat at one of the “Donate Zones,” Lowe said players receive a PIN number and buy tokens equaling their desired monetary amount. They then play the machines which include Keno, five-card poker, slot machines and other similar games.

“There are multiple games on each machine,” Lowe said.

Players can quit playing the machine at some point and return to the cashier and collect their balance, according to authorities.

Chris Dobbs, investigator with the Anderson County District Attorney’s Office, played the machines in the Dallas-Fort Worth Metroplex as part of the lengthy investigation. He said he heard one story of a man losing $800 “in an hour.”

Although critics might see the games as entertainment and a victimless crime, Lowe said his office will continue to prosecute similar cases.

“The state of Texas has said this is not a legal way to make money in Texas,” Lowe said. “Until it’s legal, they will have to comply with the law.”



Paul Stone may be contacted via e-mail at pstone@palestineherald.com