A new report by Virginia Commonwealth University confirms what many people already knew: There are strong ties between illegal gambling operations and organized crime.
“The ties between illegal gambling and organized crime are undeniable. This is not a victimless crime,” said American Gaming Association (AGA) President and CEO Geoff Freeman. “We are proud to be taking a proactive lead on an issue that preys on consumers, funds illegal activities and hurts the highly regulated legal gaming industry.”
The research also notes that many illegal gambling enterprises are large-scale, involving an average of eight to 33 participants.
The study examined 10 cases of online sports betting and unregulated casinos that are linked to mob families in New York and Philadelphia, a biker gang, and Texas drug traffickers.
Freeman said the gaming industry previously avoided shedding light on illegal betting to avoid drawing attention to legal operations, the AGA and other pro-gaming organizations are working to educate state and federal lawmakers and gaming regulators on the benefits of legalized gaming, which include increased local, state, and federal tax revenues that help to fund education and many important programs.
“Illegal gambling siphons critical tax revenue from communities and is void of any of the consumer protections provided by regulated gaming,” Freeman said, adding that illegal gambling “preys on consumers, funds illegal activities and hurts the highly regulated legal gaming industry.”
AGA, through its “Stop Illegal Gambling – Play it Safe” initiative, is working with law enforcement and the private sector to distinguish the highly regulated, $240 billion legal gaming industry from illegal gambling and criminal enterprises that fund horrific crimes.
Earlier this year, the AGA assembled an Illegal Gambling Advisory Board, to provide advice regarding industry efforts to develop actionable tools for law enforcement and to reduce the demand through public awareness; guide partnerships with law enforcement at the local, state, federal and international level; and provide strategies and perspective on necessary steps to plug existing holes in enforcement efforts.
The association announced study results during the Global Gaming Expo in Las Vegas.
