A San Francisco Superior Court judge has ruled in favor of the city in a lawsuit against the owner of a Tenderloin convenience store who was operating an illegal gambling den.
Mohsen Mused, the owner of Tenderloin Market and Deli, will have to pay $151,000 in penalties to the city, according to a news release from City Attorney David Chiu’s office issued Monday.
“This store was not a humble market and deli — it was a magnet for illegal activity,” Chiu said in the news release. “This unlawful behavior will not be tolerated in our city, and we will continue our efforts against stores engaging in illegal gambling, selling contraband, and fueling neighborhood crime.”
The store was operational from 2013 until 2026 in the 200 block of Leavenworth Street, and since 2020, police started receiving several reports of drug use, violence, robberies, stolen vehicles, and other illegal activity in or near the store.
In 2024, SFPD executed a search warrant after observing customers playing slot machines in the store, seizing seven slot machines and more than $6,000 in cash. The store also allegedly sold drug paraphernalia to minors, Chiu’s office said.
That same year, the City Attorney’s Office filed a lawsuit alleging that the store owner was violating the California Gambling Control Act, the state’s Red Light Abatement Act, and multiple other state and local laws.
In 2025, the City Attorney’s Office struck a $10,000 settlement with the property owner, who evicted the owner of the store this past August. The owner also runs two other retail stores, located at 701 Geary St. and 456 Ellis St., according to Chiu’s office.
On Friday, a judge ruled in favor of the city in its lawsuit, ordering penalties and banning Mused from owning gambling machines or drug paraphernalia at any of his businesses.
In the Tenderloin neighborhood alone, the City Attorney’s Office has either sued or shut down 13 stores engaged in illegal activity and is welcoming tips from residents about any unlawful activities taking place in other stores.