San Francisco officials have uncovered a network of secret casinos and drug dens hidden within nine convenience stores in the notorious Tenderloin neighborhood. This area, known for its drug and homelessness crises, has become a hub of illegal activity, attracting “drug-driven lawlessness” and fencing operations where stolen goods are sold to shady customers, according to City Attorney David Chiu.
The crackdown on these illicit businesses has been ongoing for the past year and a half, with some stores being shut down or facing lawsuits. One such store, the US Smoke Shop, was found to have five gambling machines, $17,269 in cash, two pistol magazines, and cannabis products in addition to tobacco products.
During a raid at Family Corner Discounts store in 2025, authorities discovered nearly 51 grams of methamphetamine hidden under a display shelf, hundreds of glass pipes, six electronic gambling machines, $4,456 in cash, and stolen goods from CVS.
This enforcement effort was made possible by a nighttime safety ordinance passed in July 2024, which restricts certain retail stores in high-crime areas from operating between midnight and 5 a.m. Violating this curfew can result in fines up to $1,000 or lawsuits. Officials are now looking to extend the ordinance by 18 months and expand the curfew zone to other crime-ridden areas of the city.
Matt Dorsey, a member of the city’s board of supervisors advocating for the expansion of the ordinance, believes that it provides residents with a “cooling-off period” that discourages illegal activity on the streets.
Police Chief Derrick Lew commended the crackdown, stating that law enforcement will continue to be “relentless” in pursuing illegal drug markets wherever they emerge. Additionally, several other stores have been evicted after property owners were informed of the illegal activities by city attorneys.
The efforts to root out these criminal enterprises in the Tenderloin neighborhood are ongoing, with city officials determined to make the area safer for residents and visitors alike.
