In 1987, Sam Gilbert was the subject of a federal investigation into money laundering and racketeering charges. According to the investigation, a scheme to launder the money received from smuggling marijuana was put together to finance the construction of the Bicycle Casino in Bell Gardens, California. According to one criminal complaint, Gilbert was indicted in Miami 4 days after his death. His son Michael also was indicted. The U.S. Government seized the casino in April, 1990, after a jury found that $12 million of the $22 million used in its construction came from Florida drug smugglers. The club's profits were frozen and placed in a special U.S. marshal account until the court held civil hearing to determine which partners knew that the club was built with drug money. George Hardie and The Park Place Associates ownership were exonerated in 1990, and they regained their 35% stake. In July 1991 a Florida federal judge ruled that at least one of the partners, former Los Angeles Westside banker M. Dale Lyon, knew about the club's financing. Eight other partners in the LCP Associates, the partnership named for Lyon, Coyne and Pierson, agreed to forfeit portions of their interest in the club before the civil hearing began. LCP partners Julianne Coyne and former California Assemblyman David C. Pierson settled before the civil hearing. In 1991, they agreed to give up about half of their interest in LCP, which had a 65% stake in the casino. By the time it sold its share of the casino in 1996, the US government had made tens of millions of dollars in profit from its share of the casino. As a partner in the club, the government also contributed to political campaigns to defeat the proposal to build a rival card club in Orange County.
2017 raid
The casino was again raided by federal authorities citing money laundering as a part of an ongoing investigation into some players using the casino to exchange “dirty money” for chips, then turn cashing those in for “clean money.”
Live at the Bike
The Bicycle Hotel & Casino was the first brick and mortar casino to broadcast a live poker cash game overthe Internet in a program known as Live at the Bike. It runs five nights a week, and features poker pros, celebrities and regular cash grinders. The show has always had card graphics and professional commentary making it one of the longest running poker shows ever.
Expansion
The Bicycle Hotel & Casino underwent a major hotel expansion in the Fall of 2015. The new seven-story, 117,907 square-foot complex now includes live entertainment, gaming, cocktail lounge, brewery, fitness center, sundeck with an outdoor bar, and a number of places to dine.
The Bicycle Casino was featured in an episode of the TV seriesNumb3rs dealing with the murder of a successful card-counter, who coincidentally was also heavily into bicycle home repair.
