New York State holds the largest market in the nation for sports betting and daily fantasy sports; however, it also remains the leading site for federal illegal gambling arrests, based on findings from WalletHub. At least that was accurate in 2023, the latest year for which FBI data is available.
In 2023, New York State recorded 339 federal gambling arrests, surpassing Nevada’s 236, according to WalletHub.
At first glance, this seems to contradict the notion that the legalization and regulation of gambling eradicates illegal activities, a primary argument for the recent liberalization of sports betting in the US.
New York is notoriously known for its five organized crime families, and for the Mafia there, longstanding traditions are tough to change.
“Because of the infamous organized crime element in New York, there’s always going to be a black market,” WalletHub analyst Chip Lupo told the New York Post.
Mafia Embedded
Illegal gambling has historically been a significant source of income for the Mob, alongside other activities such as extortion, loan sharking, protection rackets, labor racketeering, and drug trafficking.
Legalized gambling has certainly harmed illicit bookies and casinos. However, in cities such as New York, illegal gambling has a long history spanning generations, and those networks don't vanish instantly.
Importantly, WalletHub's information is sourced from the FBI’s Crime Data Explorer platform. The FBI infrequently deals with minor gambling arrests. Nonetheless, issues related to organized crime generally fall under federal jurisdiction since the Racketeer Influenced and Corrupt Organizations Act (RICO) was explicitly created to target the Mafia.
WalletHub's study excludes arrests for illegal gambling made by state officials, which are probably greater than New York's federal arrests—especially in states like California and Florida, known for actively targeting low-level gambling activities, such as unlawful slot machine venues.
When federal agents aim to target the New York Mafia, its gambling operations frequently serve as an accessible starting point. RICO enables prosecutors to link several offenses, including gambling, loan sharking, and money laundering, in a single extensive conspiracy case.
If the FBI can catch a bookie at the bottom of the pyramid, he can be turned, enabling investigators to ascend the ranks to larger figures.
Clever Individuals Caught
Although the New York Mafia is significantly less powerful than it was during its peak from the late 1940s to early 1980s, it remains operational, and 2023 saw a considerable number of arrests.
In June 2023, 17 people linked to the Gambino crime family, among them a former police officer, were charged with running a $22.7 million unlawful gambling and loansharking business in Staten Island.
In April 2023, mobster Salvatore “Sal the Shoemaker” Rubino admitted guilt to operating an unlawful gambling enterprise from his shoe repair shop in Brooklyn. He was involved in a larger scheme by the Genovese and Bonnano families that included safeguarding another dishonest officer, Hector Rosario, who is pending sentencing.