Chile delivered one of its strongest actions against illegal gambling in recent years by dismantling a network of underground casinos linked to the Chinese criminal organization Hongmen, in an operation that strengthens the protection of the regulated gaming market and the fight against money laundering. Operation Eastern Wall II, carried out on June 26, 2026, was led by the Supraterritorial Prosecutor's Office and the Chilean Investigative Police (PDI), marking a new phase in the country's offensive against organized crime's financial structures.
The operation mobilized more than 400 detectives and included raids on 29 illegal casinos (26 principal venues according to prosecutors) as well as more than 85 properties across the Metropolitan Region and Valparaíso, including Barrio Meiggs, Estación Central, La Florida, Pedro Aguirre Cerda, San Miguel, Colina, and Pudahuel. The investigation is led by Chief Prosecutor Miguel Ángel Orellana, while the police operation was coordinated by Chief Inspector Erick Menay, Head of the PDI's National Organized Crime Division. Orellana stated that "this operation is the beginning of a process rather than the end of an investigation", emphasizing that authorities are targeting the financial infrastructure supporting the Hongmen criminal organization.
The second phase of Operation Eastern Wall resulted in the arrest of 35 individuals, the identification of 116 people found inside the gambling venues, and the seizure of approximately CLP 700 million, US$30,000, 1,062 slot machine motherboards, numerous gaming machines, more than 550 rounds of 9 mm ammunition, three firearms, and cryptocurrency cold-storage devices. Authorities estimated that the illegal casinos generated approximately CLP 80 million in revenue per day. Suspects face charges including criminal association, money laundering, operating illegal casinos, bribery, and violations of Chile's Firearms Control Law.
The investigation originated from the first phase of Operation Eastern Wall in December 2025, when members of the Hongmen organization were arrested for kidnapping, extortion, drug trafficking, and money laundering. Subsequent financial analysis and digital evidence revealed that the organization continued financing its operations through a sophisticated network of illegal casinos.
Chilean authorities say the latest operation is designed to protect the integrity of the regulated gaming industry, prevent criminal organizations from exploiting illegal gambling venues for financial crimes, and reinforce public confidence in a sector operating under strict government oversight.
