Feds Detail Northern Indiana Illegal Gambling Ring Using Credit Betting, Extortion

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Federal authorities have revealed new details about an alleged Northern Indiana gambling ring, including the use of credit betting, local businesses, and intimidation tactics.

More details are emerging about an alleged Northern Indiana illegal gambling operation, involving offshore betting sites, credit lines, and the use of legitimate businesses as fronts, after federal prosecutors indicted 22 defendants.

Speaking at a press conference, U.S. Attorney Adam Mildred said a federal grand jury charged the defendants with operating an illegal gambling conspiracy that used “extortionate means to collect gambling debts and laundered the money.”

Federal authorities said the case spanned from 2021 through April 2026, describing the operation as a coordinated network of bookmakers, enforcers, and financial intermediaries operating both online and through local businesses.

“Not Harmless Gambling”

Federal officials used the press conference to emphasize the scope of the alleged illegal operation. FBI Special Agent in Charge Timothy O’Malley stated:

This was not a case of harmless or casual gambling. It was part of a broader pattern of criminal behavior that included coercion, intimidation, and financial exploitation.”

Officials also linked the operation to broader criminal activity and financial harm.

O’Malley added that such operations “create fear in the community” and “impact the entire community, not just those who are directly involved.”

The press conference also outlined enforcement actions tied to the case, including arrests across multiple states, including California, Florida, Illinois, New York, and Puerto Rico.

Authorities executed seven search warrants across Northern Indiana as part of an operation dubbed “Operation Porterhouse Parlay”. Over 150 law enforcement officers were involved in the operation.

Officials described the case as the result of a multi-year, multi-agency investigation involving the FBI, IRS, Indiana Gaming Commission, and other federal and state partners.

Mildred added that the investigation is ongoing:

The investigation is ongoing. The law enforcement team will investigate any additional crimes revealed by the evidence and any additional subjects who might have participated.”

Authorities also called for victims and witnesses to come forward.

What the Indictment Shows

The indictment outlines the mechanics of the alleged operation, led by James Gerodemos (“Jimmy the Greek”) and Dean Gialamas (“Dean Gem”).

Gerodemos served six months in 2015 for dealing with explosive materials without a license.

Operating Illegal Betting Sites With Lines of Credit

The crime group operated offshore betting sites, including abcwagering.ag and gardencitybets.com.

Accounts were created and managed through bookies rather than direct user sign-ups, with bettors receiving lines of credit that allowed wagering without upfront deposits.

The indictment also outlines a high-stakes Super Bowl “line pool.” Entries ranged from $500 to $25,000, with gross proceeds estimated at $700,000 to $900,000 per game.

Federal authorities have not disclosed total revenues tied to the broader operation.

Network of Bookies Who Collected Losses and Paid Winnings

Bookies collected losses and paid winnings in cash, checks, wires, and apps like Zelle. They used coded messages (e.g., “M” for money owed, “P” for payouts) to track weekly settlements.

Bookies received 25% commission on all their bettors’ losing bets. Gerodemos also allegedly promised monetary compensation of 50% of the debts collected to certain individuals if they were successful in collecting back due gambling debt.

To avoid detection, payments were routed through intermediaries and disguised as loans, business expenses, and other legitimate transactions.

The group used multiple accounts, aliases, and entities to conceal the activity.

Legitimate Businesses Used

Restaurants, including Gino’s Steakhouse in Merrillville and Paragon in Hobart, were allegedly used to collect gambling proceeds, pay bettors, and move funds.

The Gerodemos family owned both restaurants.

Restaurant employees are alleged to have participated in the collection of gambling revenue, with payments ranging from hundreds of dollars to as much as $50,000.

In 2023, Gerodemos received approval from the city of Hobart to open a fireworks facility, but it’s unknown whether that is connected to the case.

The indictment also names Filippo Rovito, owner of the Italian restaurant Capri in Burr Ridge, though it is unclear whether the business was used in connection with the alleged operation.

The Organization Allegedly Used Extortion and Intimidation

One of the most serious and detailed elements of the indictment includes the alleged use of threats to collect debts.

The indictment details:

Persistent harassment of a victim over gambling debts
Threats involving sending individuals to collect payments
Contacting and intimidating family members, including a victim’s daughter
Messages escalating to explicit threats of violence

In one example, photos show a pizza box and roses allegedly delivered to a victim’s home in Texas. A note said:

Do the right thing or I’m heading to Valparaiso University.”

The victim’s daughter, described in one text message as “nice-looking,” attended that university.

One victim told Gerodemos he would file a police report.

You guys keep t[h]reating me, Again and again, I’m paying what I have to pay, To james, I file a police report on all the [threats] that you guys making, To me no problem, When you involve families is another situation, You guys didn’t give me any other option, To file a police report.”

Gerodemos responded: