Undercover gambling sting leads to arrest

July 31, Kishore Penneru, 30, was arrested and booked for gambling promotion as the result of an undercover illegal gambling operation, according to the Port Arthur Police Department (PAPD). 

At 5:40 p.m., officers conducted an undercover illegal gambling operation at the Three Diamonds Game Room, 5250 Gulfway Dr. An undercover detective entered the game room and inserted a $20 to play an 8-liner, casino-style machine. Penneru, serving as a gaming attendant, added additional credits – which is illegal, according to police. While playing, the undercover detective’s machine flashed “WINNER” and Penneru reportedly paid the player in cash – which is also illegal, according to police. 

Penneru was allegedly observed paying cash to another patron, as well, PAPD reported. According to current Texas law, as presented by PAPD, no cash can be given to players utilizing what are supposed to be “for entertainment only” games identical to gambling machines legally played in casinos. Additionally, prizes can be given as “winnings” to players on “for entertainment only” games, but those prizes cannot exceed a value greater than $5. Further, as PAPD asserted in arresting the local gaming purveyor, it is illegal to operate and participate in the earnings of a gambling place. 

Penneru was transported to the Jefferson County Correctional Facility and the game room was immediately and indefinitely closed for business. 

In October 2020, Penneru was arrested and charged with prostitution, a Class A misdemeanor, during a Southeast Texas anti-human trafficking operation led to 21 arrests. He was later released on a $3,000 bond. Penneru, as far as the Jefferson County records represent, was still on bond at the time of his gambling promotion arrest. As of press time, Penneru had again been released from the custody of the jail.