In the 1930s gambling interests anchored ships in the ocean just beyond three miles from Santa Monica. Gaming was illegal in the state of California but wasn’t prohibited in federal waters. The Rex, beginning in 1938, became successful by catering to regular folks instead of big spenders but the operation became too big for the state to ignore. Threats of legal action cleared out the competing ships but the owner of the Rex held on until Johnny Law surrounded it to lay seige in 1939. In about a week it was over and later the gambling interests lost in court.
The story is more complicated than this and is a fascinating short read: https://www.laalmanac.com/history/hi06ee.php .