Two former NYPD cops were busted yesterday as authorities broke up a $30 million Internet gambling operation run out of a Queens strip club with mob ties, prosecutors said.

John Kinahan, a disgraced former officer who manages the City Scapes topless joint in Long Island City, was the ring's kingpin, while Philip Buckles, a former detective in the Organized Crime Investigation Division, was a runner for the operation, prosecutors said.

The group, which also worked out of the back of a Jackson Heights restaurant, booked bets for sports ranging from horse racing to football and used a gambling wireroom in Costa Rica accessed through a toll-free phone number and a Web site.

"When it comes to Internet sports gambling rings operating in Queens County, all bets are off," said Queens District Attorney Richard Brown. "My office has zero tolerance for such illegal activity."

Kinahan, 56, of Dix Hills, L.I., was one of five officers busted in a 1981 sting for hiring themselves out to protect a man they thought was a drug dealer who had served time in jail.

City Scapes, in Queens Plaza, has connections to the Gambino crime family, a law enforcement source said. Kinahan's wife, Virginia, 56, who is listed as the club's owner, was charged as the "bookkeeper" in the 16-count enterprise corruption indictment unsealed in Queens Supreme Court.

Fifteen others, including a city sanitation worker and a U.S. postal worker, were also arrested as part of the operation.

One suspect, alleged runner Timothy O'Connell, 42, of Carle Place, L.I., is an ex-Merrill Lynch stockbroker who is currently on trial in Brooklyn Federal Court for alleged securities fraud.

All the suspects were charged with one count of enterprise corruption and various counts of promoting gambling and conspiracy. They face as much as 25 years in prison.

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