Washington man charged in alleged decade-long illegal video gambling operation
Charges have been filed against a Washington County man accused of allegedly providing over 100 illegal gambling machines to bars, clubs and restaurants in four counties.
On Thursday, Attorney General Josh Shapiro announced the shut-down of an illegal video gambling operation in 33 bars and clubs throughout Fayette, Washington, Westmoreland and Allegheny counties.
The Pennsylvania State Police Bureau of Liquor Control Enforcement filed charges against Anthony John Zenner, 58, of Washington including corrupt organizations, dealing in proceeds of unlawful activities and gambling devices before Magisterial District Judge Robert Redlinger Thursday morning.
Zenner is the owner and operator of Zenner Vending, which allegedly provided at least 142 illegal gambling machines to establishments in Southwest Pennsylvania between 2006 and 2017, generating more than $7 million in profits.
“Today we’ve ended Tony Zenner’s video gambling operation,” Shapiro said. “This defendant raked in millions of dollars in illegal proceeds, draining money from Pennsylvanians — and from the Commonwealth of Pennsylvania — over the last decade.”
The investigation began in January 2016 following a review of gambling device questionnaires, which are completed by the owners of bars and clubs where illegal machines were discovered and used to determine which vendor provided the unlawful machines.
Undercover surveillance were conducted on bars and clubs equipped with the gambling machines from Zenner Vending.
As part of Zenner’s video poker machine operation, participating bars and clubs made cash payouts to players who “won” credits on his machines.
Because of the cash payouts on machines that are games of chance along with an added “knock off” device that kept track of each player’s credits earned and winnings, the machines were considered illegal under Pennsylvania law.
Investigators allege that Zenner was splitting the profits of his poker machines with venue owners, usually 50/50 and netting approximately $14,470 per week.
Last April, agents with the Office of Attorney General and the State Police seized 142 video poker machines, as well as $83,000 in cash from Zenner’s video poker machine warehouse in Washington County and his car.
Investigators also froze over $63,000 in five separate First Niagara/Key Bank accounts controlled by Zenner.
“Thanks to strong law enforcement collaboration with our partners in the Pennsylvania State Police and the effective use of a Statewide Investigating Grand Jury, this illegal gambling enterprise is over,” Shapiro said. “We’ll hold the defendant accountable for his crimes — and we will seek restitution as well.”
Zenner is free on $30,000 unsecured bond and is scheduled for a preliminary hearing before Redlinger at 1 p.m. Aug. 29.