New York tops the list for federal gambling arrests

The mafia’s impact on New York has contributed to the state topping the list for federal gambling arrests across all of the United States.  

According to research by WalletHub, based on the most recent FBI data available covering up to the end of 2023, the Empire State ranks top for illegal activity.

The state is home to the biggest sportsbook and daily fantasy sports markets, but beyond the regulated sector, the black market appears to be thriving. 

339 gambling arrests were recorded in New York in 2023, with Nevada in second place with 236. 

This represents an ironic twist, as the legalization of sports betting in the Empire State in 2022 has not had the desired impact on illicit gambling.

“Because of the infamous organized crime element in New York, there’s always going to be a black market,” said WalletHub analyst Chip Lupo. 

In NYC and elsewhere across state territory, illegal gambling is embedded within deep-rooted structures, so eradicating the issue will not be easy or instant.

Of the 339 arrests, many will have been linked to organized crime. From launderettes to deli shops, plenty of these operations will act as a front for underground gambling rooms. 

An example of this was in April 2023, when a Long Island shoe repair store was rumbled. 

It was operating an illegal gambling ring for the Genovese gang, one of the five infamous mafia factions in New York. Also on Staten Island, 17 associates of the Gambino family were detained in connection with a sophisticated sportsbook operation that leveraged an offshore website to lay bets.

The FBI does not pay much attention to low-level or petty gambling misdemeanors, only when it acts as an entry for a wider enterprise. 

These significant organized crime matters fall into the higher federal remit due to the Racketeer Influenced and Corrupt Organizations Act (RICO), which was introduced to target mafia activity in key areas such as New York.

RICO enables the FBI and prosecutors to connect various nefarious crimes (across loan sharking, money laundering, and illicit gambling) under one overarching conspiracy case.

It should also be noted that the WalletHub research does not include the number of arrests made by individual state authorities within their respective jurisdictions, just at the federal level.

Image credit:  Nik Shuliahin / Unsplash

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