The Federal Bureau of Investigation (FBI) of the US has shut down 40 illegal game rooms across Houston in what officials are calling one of the largest takedowns in Texas history.
Dubbed “Operation Double Down”, the crackdown exposed a $22 million illegal gambling and money laundering scheme that had been running unchecked for over 15 years.
The large-scale operation involved over 700 law enforcement personnel, executing 85 warrants across 45 locations, resulting in 45 arrests and the seizure of millions in illicit assets, firearms, and illegal slot machines.
Alleged mastermind: Pakistani-origin Nazir Ali
At the centre of the operation is Nazir Ali, a 61-year-old Pakistani citizen from Richmond, Texas. Federal prosecutors allege that Ali used a network of family members, associates, and corrupt officials to operate dozens of game rooms and launder criminal proceeds through real estate, luxury vehicles, and businesses.
US Attorney Nicholas J. Ganjei called it “a sophisticated scheme that funnelled millions through hidden channels” and said the takedown marks a major step in eradicating organized crime from the Houston area.
“We’ve dismantled one of the largest illegal gaming and money laundering operations in Texas history,” Ganjei said at a press briefing.
Key arrests and charges
Sixteen key individuals, including Naeem Ali, Amer Khan, Ishan Dhuka, and Sahil Karovalia, were arrested on charges of operating illegal gambling businesses, money laundering, bribery, and interstate racketeering. Two individuals, Syed Ali and Stephanie Huerta, remain fugitives with warrants issued for their arrests.
Authorities say those arrested face prison sentences ranging from five to twenty years, along with substantial fines—up to $500,000 for money laundering and $250,000 for other charges.
Nazir Ali alone faces 32 counts of federal program bribery for allegedly paying over $500,000 to an undercover federal officer posing as a corrupt cop to protect his game rooms from raids. If convicted, each bribery charge could add up to 10 years in prison.
Raids reveal a hidden criminal empire
During the raids, authorities seized:
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2,000+ illegal gaming machines
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Eight firearms
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10 residential properties
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Luxury vehicles and 100 Rolex watches
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$4.5 million in cash and $6.5 million in bank accounts
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Additional financial assets, bringing the total seizure to over $22 million
Investigators also discovered that more than 30 undocumented immigrants were employed as armed guards, and social media platforms such as Facebook groups like “Cici Baytown” and “Cici Chinatown” were used to promote the illegal businesses.
Corruption and bribery within law enforcement
One of the most alarming revelations from the operation is the involvement of corrupt police officers, who allegedly accepted bribes to protect illegal game rooms and pressure rival operations to shut down. According to sources, some officers received payments as high as $40,000 per meeting.
“These were not just game rooms -- they were hubs of criminal activity, protected by layers of corruption,” said an FBI spokesperson.
Impact on Houston’s organised crime
Federal authorities emphasized that the operation targeted the criminal network, not individual gamblers. The arrests are expected to deal a major blow to organized crime in the Houston region.
“These game rooms weren’t just illegal -- they were dangerous. They affected the communities they were in,” said US Attorney Ganjei. “The Houston community will be better off because of this.”
Assistant US Attorneys S Mark McIntyre, John Marck, and Carolyn Ferko are prosecuting the case, while Brandon Fyffe and Tyler Foster are handling the asset forfeitures. Officials confirmed the investigation remains ongoing, and more arrests could follow.
