San Fran’s Tenderloin District Stores Double As “Secret Casinos” And “Sleazy Drug Dens”

San Francisco officials say they have shut down or taken legal action against nine convenience stores in the Tenderloin after uncovering illegal gambling rooms, drug operations, and fencing schemes, according to the NY Post. City Attorney David Chiu said the shops had become centers of “drug-driven lawlessness” and helped sell stolen goods to shady customers.

“These convenience stores were magnets for drug activity, and, in some cases, the stores were selling illegal drugs themselves,” Chiu said, adding that his office has targeted the businesses over the past 18 months. In one case, police searching a smoke shop found five gambling machines, more than $17,000 in cash, gun magazines, and cannabis products.

The Post writes that another raid in 2025 revealed nearly 51 grams of meth hidden under a shelf, hundreds of glass pipes, electronic gambling machines, thousands of dollars in cash, and stolen merchandise. Officials say such discoveries highlight how some neighborhood shops had turned into underground casinos and drug hubs.

The crackdown is linked to a nighttime safety ordinance passed in July 2024. The pilot program restricts certain stores in high-crime areas from operating between midnight and 5 a.m. Businesses that break the rule can be fined up to $1,000 or face lawsuits. City leaders now want to extend the program and expand it to other troubled neighborhoods.

Supervisor Matt Dorsey said the policy gives residents a “cooling-off period” that discourages illegal behavior. Police Chief Derrick Lew also welcomed the effort, saying officers will remain “relentless” in targeting illegal drug markets.

Several other stores were forced out after landlords were alerted to unlawful activity, according to the city attorney’s office. Officials argue that closing these problem locations is a key step toward improving safety in one of San Francisco’s most troubled districts.