TYLER, Texas — The State of Texas released affidavits detailing the recent investigation and raid at Lucky Tunes #3 in Tyler.
The raid occurred on Thursday, Feb. 21, as a part of Smith County's effort to cut down on illegal gambling.
The affidavit alleges an undercover officer had been investigating Lucky Tunes #3 between Dec. 2018 and Feb. 2019.
During one of the the officer's visits, the officer withdrew $33 from his account to play, which the establishment reportedly allowed. State law requires no more than $20 can be used at a time.
According to the affidavit, the cashier gave the officer a receipt saying the officer had purchased $20 of music downloads.
The officer allegedly used the "music downloads" to purchase credits for each dollar spent. These credits were to be used for one of the machines that had games on it, according to the affidavit.
The affidavit states the officer won $8.20 on a single machine, more than the $5 maximum prize.
During the officer's investigation, the officer collected video and audio evidence.
Based on the investigation, the state determined Lucky Tunes #3 violated three state laws:
- Keeping a Gambling Place
- Gambling Promotion
- Possession of Gambling Device, Equipment or Paraphernalia
As a result, a Smith County judge ordered a search warrant on the property.
Officers seized a number of items from Lucky Tunes including:
- 102 computer towers
- 91 computer monitors
- 9 televisions
- Miscellaneous television accessories
- 2 laptops
- Box of security cameras
- Security screen
- ATM
- Box of miscellaneous computer accessories
- Time cards/schedule
- 9 cell phones
- 8 routers and switches
- 3 cash drawers
- 2 receipt printer
- 3 counterfeit readers
- Box of power strips
- White board
- Box of signage
- Blackboard with writing
- Box of table tents
- Dell power edge server
- US Pro 500
- 3 bill counters
- SCW DVR
- 2 charging stations
- 4 boxes of office documents
- Box of power cords and Internet wire
- Building plans
- Binder with documents
- Keys
- Brown bag containing currency bags collected from Lucky Tunes
Eleven people were arrested in the sting operation. Among those, authorities raided the homes of two of those: Kendron Johnson and James Gregory Smith.
Authorities determined Smith was the owner and Johnson was a manager at the establishment.
From Smith's home, authorities seized:
- iPad
- Grey notebook
- KOHL's box with assorted paperwork
- White notepad
- Clear tub containing various folders
- Paperwork from living room table
- Receipts from the kitchen
- White iPhone
- 3 thumb drives from living room
- Grey/black laptop and power cord
- Paperwork/receipts in trashcan
- Brown notebook/folders in a living room drawer
- 17 computer towers
- 22 computer monitors
- Cardboard box with computer accessories
- iPhone with teal cover
- Box with Lucky Tunes pictures
From Johnson's home, authorities seized:
- HTC cell phone
- 4G thumb drive
- Paper documents
- DVR from bedroom
Lucky Tunes remains under investigation.
