San Francisco City Attorney David Chiu announced Thursday that he is filing charges to close two convenience stores on the same block in the Tenderloin District, accusing them of being a front 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, providing a front for gambling dens and fencing operations. These two stores are endangering the safety, health and well-being of their neighbors.”
Mayor London Breed said, “By eradicating this illegal behavior from the Tenderloin, we will make the entire neighborhood safer for residents, small businesses and employees.”
According to the legal complaint filed against SF Discount Market, an undercover SFPD officer spotted at least five electronic gambling operations in the back of the store 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 his company’s name.
Last month, police executed a search warrant at the SF Discount Market, saying they seized nine slot machines, along with a high-capacity magazine for a Glock pistol, ammunition, 83 grams of cannabis, plastic bags that were used to sell cannabis, a digital scale and more than $10,000 in cash.
Officials said the search also turned up 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 type 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 slot machines. Three months later, SFPD officers chasing a fugitive to the market saw customers in a back room playing slot machines and a multiplayer table game.
The San Francisco District Attorney’s Office
During a 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 in plain sight drug paraphernalia used to smoke methamphetamine and crack cocaine.
Chiu’s office said it wants to close both companies for a year, including civil penalties and legal fees.
