The Naked Truth about Casino Sportsbetting and the Mafia
It goes without saying that organized crime played a significant role in the establishment and growth of Las Vegas.
Not only was a large portion of the city constructed with money from the mafia connections, but gambling has always been associated with the mafia.
In fact, it’s nearly hard to picture Las Vegas today if the mob didn’t exist!
Though it is easy to think of organized crime (Cosa Nostra, as it is commonly referred to in Sicily and the United States) as a power rooted exclusively in the past, the reality is far less sunny. It is abundantly evident that both organized crime and gambling are very much alive and well in the present era forbes.com.
However, some have been speculating that organized crime’s influence in sports gaming may be diminishing because to the global trend toward licensed sportsbooks, particularly in the US.
The Mafia and Gambling’s Past
The contemporary history of sportsbetting and the mafia has produced many memorable (in)famous personalities. Names that each player ought to be familiar with are as follows:
Bugsy Benjamin Siegel
Born in Brooklyn to a Jewish immigrant family, Siegel rose to prominence as a nationwide gangster. He was known as “crazy as a bedbug” for his aggressive and violent habits, and he was the leader of a gang of hired killers known as “Murder, Inc.”
He left the West at the age of 35, traveling first to California and subsequently to Las Vegas. There, in 1946, he opened the Flamingo Hotel and Casino using funds and connections from the Cosa Nostra. As the only casino on the Strip to have been open since before 1950, this was the third resort to ever operate in Sin City. It is also the oldest casino still in operation.
Before the casino was completed, Siegel was shot and died in 1947 under suspicious circumstances. Live for your rifle and die for it.
“Lefty” Franky Rosenthal
Rosenthal began his career in Chicago, where as a young man he was already operating the largest illegal bookmaking office in the city. He is best known today for serving as the inspiration for the Scorsese film Casino forbes.com.
After arriving in Las Vegas, he quickly gained control of multiple casinos in secret, including the Stardust, Fremont, Marina, and Hacienda. Family mobs in Chicago owned all of them forbes.com.
Among the many improvements he brought about was the introduction of female blackjack dealers, which in less than a year doubled the profitability of casinos. Nevertheless, he was ultimately forced out of the industry; following his escape from a 1982 vehicle bomb attempt, he was placed on a blacklist in 1988 and was not allowed to enter any Nevadan casinos.
Nevertheless, he was able to flee without losing his life or his freedom! More than the majority of “retired” mafiosi can say, that.
Donaghy, Tim
Even if the former NBA referee wasn’t a mob boss, his name is nevertheless linked to one of the most well-known scandals in recent memory related to gambling.
He started betting on the game he was refereeing and was winning a lot of money. Operators in the mob took notice of this. He then claimed that he exploited his position to give different teams major advantages in order to help select bettors and bookies beat the odds after Cosa Nostra operators had threatened his family.
It is hardly ancient history that this scandal broke in 2007! It merely goes to show that organized crime continues to play a significant role in the background of sports.
Will Legalized Gambling Make Sportsbetting Cleaner?
There have been rumors that the expansion of sportsbook gambling that is legal could be a fatal blow to organized crime. Why take the chance of getting into legal trouble by choosing to bet illegally when players have the opportunity to do so legally? Might decriminalizing sports betting clean up the betting scene and inflict a deadly financial blow to the mafia?
Based on our analysis of the circumstances, the response is almost definitely “no.”
There are three main causes for this.
The first is the matter of money. In particular, all you need is one to gamble legally!
Players who wish to place a legitimate sports wager must pay up ahead, just like they would with any other casino wager! In the event of a loss, the wager is forfeited; in the event of a win, they get their gains. However, when using a bookmaker, sometimes known as a “bookie,” you only have to pay if you lose and not when you place the wager. For gambling addicts who bet money they never possessed in the first place, this can be quite deadly. However, it also clarifies why certain fans of sportsbooks will never favor legitimate bookmakers over illicit ones forbes.com.
The issue of insider information comes up second.
The Donaghy incident made it very evident that the mafia may profit greatly from either influencing sporting events or from using confidential information (such a referee who, unbeknownst to most gamblers, is being paid to favor one team). This may be a historical phenomena, but it also exists right now! And for as long as possible, the gang will try to keep pilfering money with these and other benefits.
And finally, there’s the most evident reason of all: taxes.
You can wager with an unlicensed bookmaker and avoid disclosing your gains or losses! You will receive the entire amount, tax-free. There will be a paper trail associated with legal gambling, which means Uncle Sam will want a piece of your winnings. For as long as there are illegal bets accessible, this will be a huge draw for wealthy players and those who enjoy placing larger-than-average bets.
