The Hidalgo County Sheriff's Department raided a strip club outside Donna Wednesday night.
Investigators seized gaming machines from Hollywood Nites after Sheriff Lupe Trevino said the department got multiple tips.
A week long undercover investigation led to the raid.
The sheriff said his men went into the strip club, gambled and received cash rewards.
An owner and employee were reportedly arrested.
The sheriff's department expects to put out more arrest warrants tomorrow.
The sheriff said he also plans to present the evidence seized to the District Attorney in hopes of getting the strip club shut down.