Authorities raided a small casino in eastern San Diego Wednesday morning following a two-year investigation that has led to charges against more than a dozen men in an illegal online gambling ring.

More than 100 FBI agents and San Diego police detectives arrested nine of the 14 defendants through coordinated efforts in California, Nevada and Kentucky, the U.S. Attorney’s Office in San Diego said.

In three federal grand jury indictments unsealed Wednesday afternoon, authorities allege the Lucky Lady Casino and Card Room in El Cerrito was used as a legitimate front for the illicit bookmaking operation, which generated nearly $1 million.

Segal’s Lucky Lady Sports Book connected bookmakers and bettors with sports gambling websites outside of the U.S., some of which were owned or controlled by members of the gambling ring, authorities said. Sanders Segal led the gambling ring, alongside his son Sydney Bruce Segal and Lucky Lady casino owner Stanley Samuel Penn, according to the indictments.


Other defendants include suspected bookmakers and international business men accused of financing Segal’s Lucky Lady Sports Book. Five outstanding men remain at large in Canada and Thailand, authorities said.

In their joint investigation, which began in 2014, the FBI and San Diego police previously employed wiretaps and undercover agents to uncover the alleged crimes, authorities said.

On Wednesday, about a dozen investigators served a search warrant at the Lucky Lady Casino, on El Cajon Boulevard at 55th Street, about 8 a.m. They could be seen combing the small card room and examining documents.

They were expected to be be there for about two hours to collect evidence.


The raid also included a sweep of the adjacent restaurant, The River sports bar. Additional searches were being carried out at homes around the county, FBI spokesman Darrell Foxworth said.

Outside the card room Wednesday morning, David Nguyen, 36, said he has been a poker dealer at the casino for about a year and a half. He said he liked working at the location, with its friendly atmosphere.

“There are a lot of good customers and a lot of good employees – everything was straight,” he said. “Everything seemed smooth, by the book. I had a good boss. Nothing seemed out of the ordinary at all.”

Last year FBI and state agents raided the Palomar Card Club, which was on El Cajon Boulevard in North Park, about four miles west of the Lucky Lady, and the Seven Mile Casino in Chula Vista in what was described as a two-year-long investigation into an illegal gambling ring. Foxworth would not say if Wednesday’s raid was related, but noted information gathered in one investigation can lead to another.


Nguyen said when he heard about the Palomar raid, he never thought something similar could happen at his casino.

“Everyday the boss came in an made sure everything was correct and made sure everyone was doing their job right. He was on top of everything.”