Thanks to the stringent law enforcement efforts and measures, the illegal gambling rings have been reduced (or at least what it seems to appear). But it does not mean that they do not exist anymore.
Equally important to note is that illegal gambling has changed a lot over the years. Their operations are more subtle, but they remain rampant. Scroll down to find out everything about illegal gambling rings.
What Are Illegal Gambling Rings?
Although gambling, or at least some form of gambling like poker, and charitable raffles, is legal globally.
A governing body or the state usually governs land-based or online casinos. The governing body, or the licensing body, ensures that the casinos follow a proper mandate and conduct their games properly. That is to say — the slot machines are not manipulated to favour the house, and so on. There are several stringent laws that organizations have to abide by to conduct gambling activities legally. But these “legal gambling organizations” have to pay heavy taxes. Plus, the player’s winnings (in huge amounts) are also taxable.
However, some underground or covert gambling organizations conduct gambling operations without a license to escape the taxes and stringent laws.
Illegal gambling has many definitions and shapes. For context, underage gambling is also illegal. At the same time, dogfights and betting at underground fight clubs are also illegal gambling. What’s most concerning is that even attending illegal gambling events like animal fights, clubs, or casinos could lead to arrest for all attending.
Why Do Illegal Gambling Rings Exist?
Put simply, illegal gambling rings exist because escaping the legal regulations allows them to conduct high-risk and high-reward operations. In other words, these gambling rings usually offer participants to bet and gamble differently.
The high-risk factor allows gambling rings to make money. Plus, the high-reward system lures gamblers to put their money on the table.
Plus, as mentioned earlier, be it the house or participants, they can escape taxes.
Another primary reason these illegal gambling rings continue to exist is that they have become comfortable with their setup. Till a decade ago, many jurisdictions did not allow anyone to gamble (aside from a few exceptions like lotteries), so these illegal gambling rings came in to meet the demand.
And although many states legalized gambling, these organizations continued because they were established. Plus, the illegal nature allowed them to escape the legal regulations.
How Are Illegal Gambling Rings Set Up?
Well, it’s complicated. And for that reason, illegal gambling operations are rampant. There is no usual structure. Some are underground facilities, whereas some conduct their operations open and online.
Needless to say, anyone with knowledge of gambling and experience can set up these organizations. And there are multiple people involved in conducting one operation. But the main person behind it usually calls all the shots and reap most of the benefits.
The knowledge or idea about illegal gambling rings comes from the arrests made in the past. And by the looks of it, some illegal gambling rings conducted their operations in a legal land-based casino facility. Of course, such places allow them to conduct their operations without anyone getting suspicious.
Understand that illegal gambling rings do not have to do anything with buildings or locations. It is about the people and illegal gambling and bettings. And conducting illegal gambling can happen anywhere, anytime. It is the nature of gambling that is classified as illegal.
And these illegal businesses do not advertise publicly; their marketing tactics rely on word-of-the-mouth. So, escaping these illegal gambling rings is simple. And that is to do your research properly before entering any gambling stations.
Retain that getting busted at the illegal gambling stations will bear your stiffest penalties, if not a jail term.
What’s the Main Type of Illegal Gambling Ring?
The primary type of illegal gambling that often makes headlines is the sportsbook. Sportsbooks, in themselves, are not illegal in many states. In fact, many states in the US allow gamblers to bet on football, basketball, baseball, ice hockey, soccer, horse racing, greyhound racing, boxing, mixed martial arts, and other matches where sportsbooks could be maintained.
However, the problem with illegal gambling rings is they maintain a sportsbook on illegal games like animal fights, human fights (non-official, kill to win), and so on. And since such games or events are illegal to host, betting on them is illegal.
Another type of popular illegal gambling happens with unorthodox poker and blackjack. At the illegal gambling rings, the rules vary — which the state does not allow legally.
Examples of Illegal Gambling Rings
Authorities always have a strong eye on any illegal gambling operations. And here are some examples of the recent and famous illegal gambling ring busts. As you will find out, these institutions were able to generate billions of dollars of profits via conducting illegal gambling and bets.
1. Vietnam’s US$ 2.6 Billion Gambling Bust
In 2020, Vietnam’s police arrested some 16 persons involved in illegal gambling practices. An operation conducted in Hanoi led to a site named “No Hu” (loosely translated as “Break the jar” in English). It is the biggest gambling bust, where the police smashed a massive US$ 2.6 billion of revenues generated by a single site.
The An Ninh Thu Do newspaper reports that the indicted criminals were dealing with online credit cards. More than a hundred No Hu agents were involved in transacting more than US$ 110 million per month. These agents also offered online credit cards to the players who did not have money and targeted them if they couldn’t pay the money back. Basically, the more the players lost, the more they borrowed in hopes of winning the amount back.
While the authorities arrested 16 people, many more were charged with penalties and fines. Khá (a popular YouTuber), the main person behind the crime, was sentenced to 10 years of jail time.
2. Seoul’s Notorious Gambling Den
Seoul’s (South Korea) gambling bust ran for more than six years. Police planted their agents inside the gambling rings. And they waited for these secret agents to climb up the ranks and figure out how the businesses were operated. South Korea’s police reported they were doubtful about the organization but had no idea how the gambling ring conducted its operations. So, they begin the operation in 2011, and it took them up to 2017 to figure out everything and bust up the involved ones. The Police also collected some US$ 25 million of money.
It took over six years to bust the criminals because they were shifting their operations continuously. Moreover, the main person involved in the operations may also have connections to other gambling operations across the country, the newspaper report suggests.
3. Frank Rosenthal’s Gambling Operations
Here comes an interesting-yet-saddest gambling bust. Frank Rosenthal was arrested due to ties with the Mafia and syndicate; however, nothing was ever proven against him. After the arrest, Frank Rosenthal returned to Las Vegas and tried establishing his casino legally. However, he was shot (not clear who was involved in his murder).
Although Frank Rosenthal was never indicted, it is clear that he was involved in shady gambling operations and illegal bettings. He managed the sportsbook of high-profile mafia members. Before his arrest, the FBI had a 300-pages dossier against him. But then again, nothing was ever proven against him. And he was let go on all charges.
Frank Rosenthal never succeeded in establishing his legal business. But one thing is sure; he earned the respect of every professional.
Why Do Some People Use Gambling Rings?
The above examples clearly outline the benefits of running an illegal gambling operation. The money the operators can make is immense.
Besides the money factor, these illegal gambling runs allow the players to bet on things that a legal gambling house wouldn’t even dream of. Understand that illegal gambling does not mean simply running poker games secretly. They involve games that are not permitted legally. For instance, many of the gambling businesses that caught the attention of police were conducting animal fights, fight clubs, and so on.
These types of gambling are illegal for obvious reason, i.e., they are not safe. Still, this is what excites most people. Moreover, the kind of money people can make betting in these types of gambling rings is immense. And that is why some people choose to participate in these gambling rings.
Here’s how you can identify the illegal gambling rings and stay away from them:
- Check the gambling laws in your state: find out all the allowed games.
- Understand how gaming and betting are defined in the state: some states allow poker, but some prevent gambling. So, learn about them.
- Review whether commercial gambling is legal or not: some states allow charities and planned events to host bettings, but they prevent commercial gambling. So, participating in any event that does not have permission from the authorities could land you in trouble.
Should You Run an Illegal Gambling Ring?
Yes, you can, but only if you want to land in trouble and are ready to serve a jail term.
The obvious and simple answer is: NO. YOU SHOULD NOT RUN AN ILLEGAL GAMBLING RING.
Understand that getting caught will not only impose penalties. It will definitely be treated as a criminal offence. So, there is no parole or bail. You will have to serve a serious jail term.
Instead, you should get a commercial gambling license and run the business legitimately.
FAQs
1. Is it Illegal to Run a Gambling Ring Inside of a Casino?
If you have a license to practice and you are operating by a rulebook, then you can run a gambling ring anywhere. However, if you do not have permission to conduct some kind of sports or betting, you should avoid getting involved (either hosting or participating) in such gambling rings.
2. How Do Underground Casinos Work?
Underground casinos allow people who can’t gamble to participate in their events. Plus, they conduct illegal games and bettings that are generally allowed in a legitimate business.
3. What Are the 3 Types of Gambling?
- Chanced-based gambling.
- Skill-based gambling.
- And the third one is illegal. The rules are set by the illegal gambling ring operator.