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SALT LAKE CITY — The owner and the manager of a Salt Lake business are facing criminal charges accusing them of offering gambling machines for customers.
On Wednesday, Nikalaos Stanworth, 46, of Salt Lake City, was charged in 3rd District Court with money laundering, a third-degree felony; and six counts of having a fringe gaming device, six counts of possessing a gambling device and a prior record, and gambling promotion, all class A misdemeanors.
Mousam Khatiwada, 38, of Salt Lake City, was charged Friday in 3rd District Court with money laundering, a third-degree felony, and six counts of possessing a gambling device or record and gambling promotion, class A misdemeanors.
On Nov. 9, 2022, Salt Lake police conducted an undercover investigation at 1435 S. State. An undercover detective "went into the business and observed six gaming machines with multiple cash ports on each machine. There were numerous individuals in the business playing on these machines," according to charging documents.
Several people in the business would say "redeem" and later were observed exiting the business counting cash, the charges state. The detective observed similar activities after entering the business the next day.
On Nov. 16, 2022, police returned with a search warrant and found six gambling machines, money ledgers, nearly $17,000 in cash and a small amount of crack cocaine, according to the charges.
"Khatiwada stated that he is the manager of the business, but Stanworth is the owner. Khatiwada stated he keeps 60% of the cash from the business, and the other 40% goes to Stanworth. Khatiwada stated that Stanworth owns all the machines in the business, and the business license is in Stanworth's name. Khatiwada said he uses the money from the business to pay the rent and buy prizes for people to win from the machines. Khatiwada stated people put cash in the machines and if they win, he would attempt to give them a prize but would give them cash if they did not want a prize. Stanworth would come by the business once a week to collect his portion of the earnings," the charges allege.
A third man is listed as a codefendant in the case, but no formal charges have been filed against him.
Stanworth has been the subject of gambling investigations in the past. In 2011, he was charged in 3rd District Court with engaging in a pattern of unlawful activity, three counts of money laundering and four counts of gambling promotion. He later pleaded guilty to two counts of gambling promotion, a class B misdemeanor. He was arrested and charged a few months later in a second gambling investigation, but those charges were later dismissed.
