A police-run casino with undercover agents posing as gamblers was employed as part of an elaborate sting operation which brought about the arrest of Haim and Shimon Gigi of Hatzor Hagliglit for alleged money laundering and gambling charges, it was revealed on Tuesday.

The faux casino was opened by a police agent in partnership with the brothers, who furnisehd it with slot machines manufactured in their factory in return for 50 percent of the profits.

Information gathered by the agent lead to the police raid on 25 December in which some 21 suspects were arrested and 21 others were held for questioning. In addition, some 800 slot machines were confiscated and the brothers' houses were foreclosed.

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"The police operated an undercover agent over the last few months in order to collect evidence against the suspects so that eventually they would be tried," A police official said.

"The Gigi brothers are well known as illegal gamblers but prior [to the operation] there was no evidence against them."

According to police, the Gigi brothers were heavily involved in illegal gambling operations throughout the Galilee region.