There are many different types of illegal gambling, and some gambling activities may be legal in one context but not another. Often, different areas have very different rules about what types of gambling are allowed, sometimes resulting in a concentration of gambling facilities in certain areas. Certain types of gambling may be illegal in an area, or the game must adhere to certain regulations in order to be legal. Illegal gambling often takes the form of otherwise legal games put on in illegal venues, which complicates the issue even further.
In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, which made it illegal for wagering businesses to knowingly accept payment in connection with unlawful Internet gambling (though it does not itself make Internet gambling illegal). 109-347, Title VIII (Oct. 13, 2006) (codified at 31 U.S.C. §§ 5301, 5361–67. How Tax Evasion Works. Money laundering is an attempt to disguise illegal income - from a drug operation, illegal gambling ring or other form of organized crime. Over the years, mobsters have dealt in alcohol during Prohibition, illegal drugs, prostitution and illegal gambling. Sometimes, burglaries and muggings generate income, but the capos know that their activities need a grander scale to ensure maximum profit. This is why they hijack trucks and unload entire shipments of stolen goods. It is also illegal for a gambling Web site to operate within the United States, which is why the offices and servers of most online casinos are located in other countries. There are about 70 countries that allow online gambling sites to set up shop, including Australia, New Zealand, South Korea, Denmark, Finland, France, Germany, and some.
Illegal gambling rooms are nothing new in the Houston area. Officials say there are only seven licensed game rooms in Harris County but an untold number that operate outside the law, raking in.
One of the most common types of illegal gambling involves games that may otherwise be legal in illegal venues that do not have permission from the state to operate. This may include card games, video poker machines, and even simple games involving coins and dice. Generally, informal games between friends are seen as different than underground gambling rings, but in certain cases even social poker games played for money can be seen as unlawful gambling. When a game is not run with the explicit permission of the government in the form of licenses and other documents, it is generally considered illegal.
Certain types of gambling activities are illegal in many areas no matter who is in control of the venue. For example, cock fighting and dog fighting are often illegal because these games are considered unsafe and cruel to animals. Most games that involve animal death or injury are against the law, but betting on games like bull fighting, dog racing, or horse racing is usually considered a different category of activity.
There are a variety of illegal gambling activities that do not involve playing games but rather predicting the outcome of future events in the public sphere like sports games. Any activity can become a gambling activity of this type, including elections, award shows, and the weather. Sports games are usually considered the most popular because there is an element of chance involved in all games. People who take and give out money for this type of gambling are sometimes called bookies, and in some areas must register with the government in order to be legal.
At different times and in different places, various gambling activities have been against the law. In some areas, all games involving the exchange of money are considered illegal, and in certain religious areas, any activity that resembles gambling even without money involved is questionably legal. Illegal gambling can take nearly any form, so long as money or other resources can be exchanged. Certain types of hidden illegal gambling can be very difficult to catch or identify, but all forms involve financial risk of some sort.
The main difference between legal and illegal gambling is that legal gambling is monitored by government inspections agencies. But more people gamble because it is legal, and although the government collects taxes on jackpots, Indian casinos and lotteries, the system is highly subject to fraud.
Gambling online is illegal (federally), but this doesn’t stop people from doing it. And even though the Organized Crime Section of the Department of Justice found that “the rate of illegal gambling in those states which have some legalized form of gambling was three times as high as those states where there was not a legalized form of gambling,” we still believe that gambling is a drain to society. Here are our Top 5 reasons why.
Reasons why gambling should be illegal
1. Gambling is subject to fraud.
Legalized gambling, specifically Indian gaming, is the fastest growing industry in the world, and can have a corrupting influence on state government. The governments are addicted to the revenue received from Indian gaming and lotteries. Recently there have been numerous news reports of corruption and fraud in state lotteries.
2. Availability of gambling facilities increases risk of problem gambling.
Legalized gambling makes this activity available to too many people. Governments and casinos portray this as a harmless form of entertainment. Because of the availability of legalized gambling, it is more addictive and destructive than most other addictions.
Furthermore, most citizens would not gamble illegally. Legalized gambling, therefore, entices people to gamble, who normally would not gamble at all. In states with different numbers of games, participation rates increase steadily and sharply as the number of legal types of gambling increases. In fact, legalized gambling in various states has not been a competitor to, but rather has become a stimulator of illegal gambling.
The public is assured they have the potential to win a huge jackpot. All that is required is to drive to the casino or purchase a lottery ticket. Because of the availability of gambling, many gamblers become addicted and compulsive. Interested in how to quit gambling? Read more here.
3. Problem gambling costs society billions annually.
The social costs of gambling addictions will eventually impact careers, physical and mental health issues, bankruptcy, divorce, crimes, and treatment. The gamblers will eventually rely on welfare or unemployment benefits, impacting the government, and the costs could reach several billions of dollars per year.
4. Gambling exploits the poor.
Evidence shows that legalized gambling often hurts and even destroys, especially those who are poor and disadvantaged. If gambling were illegal, the gambling venues would not be able to promote their lotteries, casinos, or other forms of betting and exploit people who are most vulnerable.
5. Gambling sets a double standard for governments.
State lotteries are argueably an effective way to raise taxes. Legalized gambling is a disturbing governmental policy. Governments should promote desirable qualities in the citizens and not seduce them to gamble in state-sponsored vice. When this occurs, the government contributes to the corruption of society.
Legalized gambling is a bad social policy. At a time when independent organizations estimate that there are at least 12 million compulsive gamblers, it does not make a lot of sense to have the state promoting gambling. State sponsorship of gambling makes it harder, for the compulsive gambler to reform.
Compulsive gambling costs
In addition to the above reasons for making gambling illegals, are the economic costs that gamblers themselves incur. The average compulsive gambler has debts exceeding $80,000. Additionally, compulsive gamblers affect the lives of family, friends, and business associates. Some of the consequences of gambling include marital disharmony, divorce, child abuse, substance abuse, and suicide attempts. Other social costs surface because of family neglect, embezzlement, theft, and involvement in organized crime.
Crossing our fingers or wishing on a star will not guarantee a win. The only guarantee is, if a person is a compulsive gambler and continues to gamble, the end result is prison, insanity, or death. Whether gambling is legal or illegal, there will always be gamblers. Wanna bet?
How To Report Illegal Gambling
Reference sources: Probe [dot] org
Illegal Gambling Rooms