San Francisco City Attorney sues to shut down alleged gambling dens in Tenderloin

San Francisco City Attorney David Chiu announced Thursday that he is suing to shut down two convenience stores on the same block in the Tenderloin, accusing them of being fronts for illegal gambling.

Chiu said lawsuits have been filed against the owners and managers of the SF Discount Market at 238 Leavenworth Street and the Tenderloin Market and Deli at 200 Leavenworth Street.

“For law abiding residents, there is nothing convenient about these stores,” Chiu said in a statement. “They have been a blight on the neighborhood for too long and are fronts for gambling dens and fencing operations. These two stores are endangering the safety, health, and welfare of their Tenderloin neighbors.”

Mayor London Breed said, “By rooting this illegal behavior out of the Tenderloin, we are making the entire neighborhood safer for residents, small businesses, and workers.”

According to the legal complaint filed against SF Discount Market, an undercover SFPD officer saw at least five electronic gambling operations in the back of the store back in May. In a separate incident, the owner of a hookah lounge called police after someone at the store tried to sell him hookah pipes engraved with the name of his business.

Last month, police executed a warrant search at the SF Discount Market, saying they seized nine slot machines, along with a high-capacity magazine for a Glock handgun, ammunition, 83 grams of cannabis, plastic bags used for selling cannabis, a digital scale and more than $10,000 in cash.

Officials said the search also yielded contraband and stolen property for sale, including cigarettes from other states, 17 iPhones and merchandise with original price stickers from other stores, including Walgreens and Sephora.

“San Francisco will not tolerate this kind of illegal activity in the Tenderloin or any other neighborhood in the city,” said Police Chief Bill Scott.     

According to the legal complaint against Tenderloin Market and Deli, an officer entered the store in April and saw three people playing electronic gambling machines. Three months later, SFPD officers pursuing a fugitive into the market saw patrons playing slot machines and a multiplayer table game in a back room.

During a warrant search last month, police said they found seven slot machines, a loaded firearm, more than $6,000 in cash and a money counting machine.  

Both stores are also accused of selling drug paraphernalia used for smoking methamphetamine and crack cocaine in plain view.

Chiu’s office said they are seeking to shut down both businesses for one year, along with civil penalties and legal fees.