U.S. Feds Sanction Mexican Cartel Casino-Linked Racetrack

The U.S. Treasury Department sanctioned a Mexican racetrack allegedly under the control of a drug cartel that offered horse race betting with a nearby casino.

Club La Molienda, a horse racetrack, bar, and restaurant in Nuevo Laredo, Tamaulipas, Mexico — just over 10 miles from the Mexican-American border — was part of the Treasury Department’s self-proclaimed largest financial crackdown on Cartel del Noreste (CDN). 

This cartel effectively replaced Los Zetas, a feared cartel that had been designated as a terrorist organization. The organization fragmented after its leadership was neutralized.

Racetrack tied to casino sanctioned

The racetrack was one of 11 entities and four individuals who were sanctioned on Tuesday, according to officials.

The Treasury Department claimed that Club La Molienda operated a betting ring in collaboration with Casino Centenario, a casino in Nuevo Laredo that offered far more than slot machines and table games.

The Treasury Department in April accused the casino of being culpable in a variety of crimes, including: 

• Housing fentanyl pills and cocaine
• Laundering illegal money
• Allowing torture of cartel enemies in backrooms

Mexican and American authorities collaborated to shut down the casino’s operations in April. An unrelated Diamante Casino in Tampico and its online platform were also disciplined because of its links to the same operating company.

Despite that, the Treasury Department claims the nearby racetrack is still under the authority of Miguel Ángel “Z-40” Treviño Morales, a CDN founder who was arrested in 2013 and extradited to the U.S. in Feb. 2025. He is facing federal charges for conspiracy and drug offenses. His trial is ongoing.

Officials believe Club La Molienda generated revenue for the cartel by charging owners of competing horses and spectators attending the races. Some of these horses are cartel-owned and purchased from the U.S. 

More individuals & entities involved

The CDN has a history of extreme violence. After forming as a direct splinter of Los Zetas in 2015, it adopted many of its founding group’s ultra-violent and brutal tactics including public executions.

The cartel has been connected to horse racing for nearly two decades. According to the authorities, Treviño Morales and his brother, Oscar Omar “Z-42,” used illicit drug money to acquire and train American racehorses as early as 2008. 455 horses were seized from an Oklahoma farm and racing and training facilities in 2012.

Records indicate that shell companies and cartel affiliates put $16 million into supporting operations in Texas, Oklahoma, New Mexico and California, where they laundered at least $22 million. 

Mexican businessman Gamaliel Garza García, who races horses at tracks in California and New Mexico and at La Molienda was also looped into the federal sanctions. His company, CEGESA, used corruption to acquire government contracts and used funds to support campaigns for politicians backed by CDN. 

All sanctions result in frozen accounts and assets held in the U.S. and typically prevent Americans from engaging in business with individuals and entities who are involved.