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The Desert Prison is a prison where Mario, Luigi, Bob and Fishy Boopkins are locked in in the blooper SMG4: Mario's Prison Escape It's located somewhere in the desert. The prison makes a second appearence in SMG4: Mario Commits Tax Fraud, a year after the first one, when Mario and Yoshi are seen inside a prison cell.
https://steamcommunity.com/sharedfiles/filedetails/?id=500968461 (Gmod is required)
Mario has been sent here twice, once for hitting and running and once for committing tax fraud.