1. LOTTERIES AND OTB

2. THIS SEMINAR WILL EXAMINE WHAT ORGANIZED CRIME HAS DONE TO DEAL WITH THEIR LOSS OF PROFITS TO STATE RUN LOTTERIES AND OFF TRACK BETTING PARLORS. HOW ORGANIZED CRIME HAS ADAPTED TO FILL THIS VOID

3. FIRST A FEW THINGS TO CONSIDER  ( TASK FORCE ON OC-1967 ) THE CORE OF ORGANIZED CRIME ACTIVITY IS THE SUPPLYING OF ILLEGAL GOODS AND SERVICES- GAMBLING, LOANSHARKING, NARCOTICS, AND OTHER FORMS OF VICE-TO COUNTLESS NUMBERS OF CITIZEN CUSTOMERS.

4. AND AS DONNIE BRASCO SAID  OF ALL THE VARIOUS SCAMS AND OPERATIONS ORCHESTRATED BY WISE GUYS, NONE IS AS PROFITABLE AND AS DEPENDABLE AS ILLEGAL GAMBLING, IT IS A 365 DAY A YEAR PROPOSITION

5. REMEMBER DUTCH SCHULTZ?  WITH PROHIBITION ON THE WAY OUT SCHULTZ LOOKED FOR OTHER SOURCES OF REVENUE  HE TOOK OVER HARLEM NUMBERS RACKET, AN EARLY EXAMPLE OF OC AND GAMBLING

6. AND IN CHICAGO  A 1990 FEDERAL INDICTMENT REVEALED THE OUTFITS RESPONSE WHEN THEIR HEGEMONY OVER GAMBLING WAS CHALLENGED.  OPERATORS OF HIGH STAKES CARD GAMES FORCED TO GIVE 50% OF PROFITS TO BOSS SAM CARLISI

7. THE NEW CHALLENGE FOR OC  Legalized gambling has exploded into a national force. Revenues doubled the past five years ('91-'96). In 1996 gambling waging totaled over $500 billion. In 1997, 38 states including the District of Columbia have lotteries; 23 states have casinos. Two decades ago, two states had legal gambling; today 48 states have sanctioned it. (Frontline, PBS)

8. ABADINSKY POINTS OUT  GAMBLING IS OFTEN OPERATED BY NATIVE AMERICANS ON INDIAN LAND. STATE,COUNTY, AND MUNICIPAL GOVERNMENTS EARN A GREAT DEAL OF MONEY FROM THESE AUTHORIZED GAMBLING ACTIVITIES.  EXAMPLES IN CHICAGO AREA AURORA AND ELGIN, IL.

9. BUT THE REVENUES COME AT A PRICE  MORE THAN THREE DECADES AGO A FEDERAL COMMISSION WARNED, “THE AVAILABILITY OF LEGAL GAMBLING CREATES NEW GAMBLERS”.  LEGALIZATION MAY LEAD TO UNEXPECTED AND UNGOVERNABLE INCREASES IN THE SIZE OF THE GAMBLING CLIENTELE.

10. OC HAD THE CREWS TO HANDLE THE NEW CLIENTELE!

11. LOTTERIES EVERYWHERE!!  TODAY IN THE U.S. THERE ARE 42 STATES THAT HAVE A LEGAL LOTTERY.  IN THESE STATES ILLEGAL LOTTERIES WILL OFTEN USE THE SAME WINNING NUMBERS AS THEIR STATE LOTTERY!

12. THE DIFFERENCE??  ODDS IN THE ILLEGAL LOTTERY MAY BE HIGHER THAN THOSE OFFERED BY THE STATE.  IN THE CHICAGOLAND AREA THE LEGAL LOTTERY PAYS $500 FOR EACH DOLLAR WAGERED ON A THREE DOLLAR BET, BUT THE ILLEGAL LOTTERY PAYS $600 FOR A FOUR NUMBER BET. WINNERS ARE PAID CASH AND NO TAXES ARE WITHHELD.

13. ILLEGAL LOTTERIES PROVIDE  MANY JOBS FOR UNSKILLED INDIVIDUALS, BECAUSE OF THE LABOR INTENSIVE NATURE OF THIS OPERATION.  AN IMPORTANT SOURCE OF EMPLOYMENT IN POOR COMMUNITIES  THOSE WHO ACCEPT WAGES(RUNNERS) ARE PAID A PERCENTAGE OF THE WAGERS THEY WRITE

14. VIDEO POKER MACHINES

15. JUST LIKE A SLOT MACHINE!  BUT THEY ARE LEGAL BECAUSE THEY DO NOT DISPENSE MONEY!  A STAPLE IN MANY TAVERNS OR BARS  PAYOFFS ARE PROVIDED BY THE PROPRIETOR SURREPTITIOUSLY. IN CHICAGO THE OUTFIT PROVIDES THE MACHINES AND SPLITS THE PROFITS, WHICH CAN BE SEVERAL THOUSAND DOLLARS PER WEEK, PER MACHINE.

16. MORE MONEY FOR THE MOB!  Video poker machines have long been a staple of Chicago taverns and a rich source of revenue for the Chicago mob.  Authorities believe the video poker machines, which produce illegal payouts, tie back to the operation of the late Joseph “Shorty” LaMantia, a top lieutenant in the 26th Street Crew, which operates in Bridgeport and Chinatown in Chicago.the late Joseph “Shorty” LaMantia, a top lieutenant in the 26th Street Crew

17. SPORTS BETTING

18. THE NEW KING OF THE HILL  FROM A GROSS DOLLAR VOLUME STANDPOINT, SPORTS WAGERING IS THE KING OF BOOKMAKING  IN 2004 GAMBINO SOLDIERS PLEAD GUILTY IN NY TO RUNNING A $30 MILLION A YEAR SPORTS BETTING OPERATION  ANOTHER GAMBINO SOLDIER WAS CONVICTED OF RUNNING A SPORTS BETTING AND NUMBERS OPERATION THAT COLLECTED $3 MILLION ANNUALLY!

19. HOW SPORTS BOOKMAKERS SURVIVE  BOOKMAKERS FREQUENTLY FIND THEIR BETS SUFFICIENTLY UNBALANCED TO REQUIRE THAT THEY BE LAID OFF.  THE BOOKMAKER MAY USE LEGAL BOOKMAKERS IN LAS VEGAS TO ACCOMPLISH THIS LAYOFF.

20. TECHNOLOGY HELPS!  MOST ILLEGAL WAGERING TODAY INVOLVES SPORTS, AND BETS ARE MADE BY TELEPHONE, OR OVER THE INTERNET.  THE ALMOST EXCLUSIVE USE OF THE TELEPHONE PROVIDES GREATER SECURITY AND HAS REDUCED THE NEED FOR POLICE PROTECTION.

21. SOME TIMELESS SOURCES OF GAMBLING REMAIN!  ORGANIZED CRIME OPERATIVES MAY ALSO ORGANIZE OR SPONSOR CARD OR DICE GAMES,TAKING A CUT OUT OF EVERY POT.  BINGO PARLORS WITH FALSE CHARITABLE FRONT.

22. BUT THERE IS A BIG DIFFERENCE!  Research from the Harvard School of Public Health and the Annenberg Public Policy Center seems to indicate a nearly 600% increase in gambling in post-secondary institutions between 2001 and 2005, with over 15% of students engaging in gambling each week in 2005. Although most of the gamblers are over 21, most first and many second year college students are still teens, and even if they are not active participants, this is part of the situation in which they are living..

23. WE KNOW A FEW THINGS  ORGANIZED CRIME CONTINUES TO MAKE MILLIONS ON ILLEGAL GAMBLING OPERATIONS  THERE IS INCREASING EVIDENCE THAT THE EASY AVAILABILITY OF LEGALIZED GAMBLING IS ATTRACTING YOUNG PERSONS AT AN ALARMING RATE.

24. SO WHAT IS LAW ENFORCEMENT DOING?

25. HERE’S A FEW PROBLEMS  REMEMBER MOST STATES HAVE LEGALIZED GAMBLING OF ONE SORT OR ANOTHER.  AT THE SAME TIME THERE ARE UNAUTHORIZED (ILLEGAL) GAMBLING OPERATIONS WHOSE CONTROL IS THE RESPONSIBILITY OF THESE SAME GOVERNMENTS!

26. AS ABADINSKY POINTS OUT  IN SUCH AN AMBIGUOUS ENVIRONMENT, IT IS EASY TO UNDERSTAND WHY GAMBLING ENFORCEMENT MAY NOT GENERATE A GREAT DEAL OF PUBLIC SUPPORT

27. ESPECIALLY NOW!  LACK OF ENFORCEMENT RESOURCES DUE TO COMPETING DEMANDS FOR POLICE SERVICES.  THERE IS AN ABSENCE OF PUBLIC PRESSURE TO IMPROVE GAMBLING ENFORCEMENT.

28. AND THE RESULT  THE ESTIMATED AMOUNT OF ILLEGAL BETTING INCREASED TENFOLD BETWEEN 1983 AND 1995  ARRESTS FOR ILLEGAL GAMBLING DECLINED SIGNIFICANTLY IN URBAN AREAS.

29. IT THEREFORE APPEARS  THAT THE REWARD VS RISK THEORY WOULD LEAD OC TO CONTINUE THEIR INVOLVEMENT IN ILLEGAL GAMBLING.  THE POTENTIAL PROFIT REMAINS HIGH!

30. GREAT JOB!!  BUT BEFORE YOU GO!

31. IMPORTANT TIPS FOR YOUR PROJECT  Follow directions! Each project will list specific points to be covered. Too many times students lose points because they don’t cover a specific area listed in project directions  Use the Kaplan Writing Center to review your project prior to submission. Make sure you cite references in the body of your paper. (See the document sharing tab for how to cite references).

32. LAST BUT NOT LEAST!  Do not use Wikepedia! It is not a peer reviewed/academically recognized credible source.  And most of all after you've researched and analyzed a subject, tell me what you think!