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And it has injected an illicit attraction into small towns that now hum at all hours with a scaled-down Las Vegas Strip experience of chiming slot machines, free all-you-can-eat buffets and uniformed security guards. The gambling room on Highway 83 at the renovated gravel warehouse featured at least machines; a giant, sparkling chandelier; pictures of Marilyn Monroe on the red walls; and free hot dogs. Home Page World U.{/INSERTKEYS}{/PARAGRAPH} Gamblers like Mrs. Saenz said environmental regulations prohibited him from destroying confiscated eight-liners. They had their strobe lights, and their blinking lights, and their signs. Among the cattle ranches and wind-battered palm trees on U. {PARAGRAPH}{INSERTKEYS}But on a drizzly Tuesday afternoon in February, you could not tell it by the scene inside a former tire shop near this Rio Grande Valley border town: a few dozen men and women gambling on 75 slot machines in windowless rooms. Saenz said. But operators of illegal gambling rooms began exploiting the law. The bill, signed into law by Gov. And some communities have had even less incentive to investigate gambling rooms since officials began requiring casinos to pay for costly permits, bringing in revenue to needy cities and counties. The slot machines — known as eight-liners, for the variety of lines that need to match up for a player to win — are often hidden in abandoned or fake businesses, and have turned up in spaces that from the outside appeared to be karate schools, car dealerships, lawn mower repair shops and, in the South Texas town of Alton last year, a molecular lab. You see postings on Facebook of people winning. It was intended to ensure that amusement games, such as those played by children at Chuck E. Benson, assistant special agent in charge of Homeland Security Investigations in the Brownsville area. Esperanza Salinas, 70, a retired middle-school teacher, went there with her year-old husband, Jorge Salinas, and her brother-in-law, Armando Salinas Jr. About 40 raids have been conducted since April as part of Mr. Workers at two gambling rooms on Highway 83 in Starr County — one in the former tire shop and the other in a renovated gravel warehouse, both of which openly paid players in cash during a visit in February — claimed to have county permits but declined to comment further. The industry has grown so large, particularly near the border, that it has attracted the attention of the federal Department of Homeland Security. Salinas said, she gambles on eight-liners about twice a month. Salinas have an unlikely group to thank for the slot-machine boom: the Texas Legislature. But lax oversight by the state and local authorities helps explain how casino gambling has become so common even in a state like Texas, which publicly and officially is keeping casinos out while quietly and unofficially allowing them to proliferate. Despite laws saying otherwise, casinos thrive throughout the state, an underground billion-dollar industry that operates in a murky realm and engages in a perpetual cat-and-mouse game with the authorities. Dance music blared. When she is not busy deer hunting or volunteering at her church, Mrs. In in Brownsville in South Texas, the federal Homeland Security Investigations began looking into money-laundering activity associated with eight-liner establishments. Yet many local officials lack the resources and the will to prove whether cash is being exchanged. One gambler wore medical scrubs. That February afternoon, the three of them spent a few hours gambling at the renovated tire shop and gravel warehouse. Ann W. But state officials have no idea which slot machine operators are making illegal cash payouts, saying it is up to local authorities to enforce gambling laws. The legal gray area has grown even grayer as the state and several cities and counties have required gambling room operators to pay taxes and fees. It is unlawful for slot-machine casinos to pay cash to gamblers, but it is legal to own, operate and play the machines in Texas, as long as the prizes are cheap noncash items such as coffee pots. About slot machines seized in the raids sit in a brick warehouse.