Belmont police said they have shut down a bookmaking operation disguised as a candy warehouse where up to $250 million in bets were handled annually. Three people were arrested and police confiscated $20,000 in cash and an unspecified amount of cocaine. "It was set up to look like a candy store," said San Francisco vice Inspector Vincent Repetto. "But they had double locks on all the doors and iron grates on the windows. We were lucky to get in." Investigators said five telephones in the warehouse were linked to tape recorders to record bets coming in over a toll-free number. The suspects are Stanley Pandolfi, 51, of Hillsborough; Harvey Ubhoff, 46, of Pacifica, and Linda Colla, 36, of Daly City, police said.