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U.S. Department of Justice Links Gambling and Crime Among Arrestees

U.S. Department of Justice - Office of Justice Programs National Institute of Justice, July, 2004 This report, funded and published by the U.S. Department of Justice studied people who had been arrested in Las Vegas and Des Moines, Iowa. They found significant connections between gambling and crime. “More than 30 percent of pathological gamblers who had been arrested in Las Vegas and Des Moines reported having committed a robbery within the past year, nearly double the percentage for low-risk gamblers. Nearly one-third admitted that they had committed the robbery to pay for gambling or to pay gambling debts. In addition, about 13 percent said they had assaulted someone to get money. DOJ Study- Gambling and Crime Among Arrestees

Measuring Industry Externalities: The Curious Case of Casinos and Crime

The predatory gambling business dismisses crime increases which parallel the introduction of casinos as being the simple result of increased population. This landmark study by economists Earl Grinols and David Mustard exhaustively reviews the reality of casinos and crime. Most gambling studies are done very soon after the opening of casinos and are funded by gambling interests. This independent academic review is far more extensive in its research, and illustrates the escalating occurrence of crime as local gambling impact “matures.” The study shows that casinos increased crime after a lag of 3 to 4 years. It also shows, by studying the crime rates in counties that border casino host counties, that the data suggests casinos create crime, and not merely move it from one area to another. Neighbor county data indicates that casino crime spills over into border areas rather than is moved from them. Measuring Industry Externalities - The Curious Case of Casinos and Crime

More Than 30% of Problem Gamblers Admitted to Stealing from the Workplace to Gamble or Pay Gambling Debts

R. Keith Schwer, William Thompson and Daryl Nakamuro compiled this fascinating study of problem and pathological gamblers in which they estimate the social costs to gambling’s host community, arriving at a conservative figure above $19,000 per problem gambler. Some of the detail is particularly compelling: when pathological gamblers run out of legitimate sources of money they consider illegal sources. Starting close at hand, they pass bad checks. The study found that 63.3% wrote such checks. They also look for money in the workplace. Also, 30.1% admitted to stealing from the workplace in order to gamble or pay gambling debts. This is about the same portion who stole from the workplace in other surveys: 31.7% in Wisconsin, 37.1% in South Carolina, and 40.7% in Connecticut. A majority, 50.6%, of the respondents indicated that they had stolen money or things and used it to gamble or to pay gambling-related debts. Beyond the Limits of Recreation - Social Costs of Gambling in Southern Nevada

The Failure to Regulate the Gambling Business Effectively: Incentives for Perpetual Non-Compliance

Social and economic costs of legalized gambling, and the difficulty of its regulation are the subjects of this Southern Illinois University Law Review article by John Warren Kindt. The evidence shows that gambling causes addiction, bankruptcy, crime, and corruption in its surrounding communities. All of the social costs associated with those problems can add up, and there is shockingly little pressure on government or the predatory gambling business to do better. The Failure to Regulate the Gambling Business Effectively

Casinos Use Surveillance to Help Only Their Profits, Not Their Patrons

This new Associated Press story shows the reality of the use of video surveillance in casinos. While many may think they are safe at a large, well-known casino, this story tells that the many cameras installed are used not to help secure the safety of casino hotel workers and patrons, but for making sure no one is cheating while playing their games. This just goes to show where casinos' priorities really are. 2013 In Vegas, eye in the sky guards money, not guests

The Relationship Between Crime and Electronic Gambling Expenditures

Here is a study on the relationship between crime and electronic gambling expenditures in Victoria, Australia. It shows a consistent positive and significant relationship between gambling and crime rates, especially income-generating crime rates, at the local level. The Relationship Between Crime and Electronic Gambling Expenditures

The Impact of Casinos on Fatal Alcohol-Related Traffic Accidents in the United States

This is a 2010 study from The Journal of Health Economics which investigates the impact of casinos on alcohol-related automobile accidents. Gamblers often drink excessive alcohol while gambling and casinos often provide free alcohol to problem gamblers. The results of the study indicate that there is a strong link between the presence of a casino in a county and the number of alcohol-related fatal traffic accidents. The Impact of Casinos on Fatal Alcohol-Related Traffic Accidents

Gamblers Stealing Millions to Feed Habit

A private investigative report in Australia found that millions of dollars were being stolen because of the rising numbers of problem gamblers in the country. This includes $13 million of stolen money lost in slot machines or "pokies." Sydney Morning Herald - Gamblers Stealing Millions to Feed Habit

Predatory Gambling and Fraud in Australia

This 2009 Australian report from KPMG (one of the world's largest accounting firms) finds that gambling was the most common motivator of fraud with an average value of $1.1 million per incident. KPMG Fraud Survey 2008

Australia’s Dirty Laundry Business

Professional money launderers have turned poker machines in Australia's hotels, clubs and pubs into a profitable source. Hotel industry sources have estimated that $2 billion is laundered annually in Australia. Money Laundering is Profitable with Australia's Poker Machines

Money Laundering in Las Vegas

Despite stricter sanctions that have eliminated some of the criminal activities in Las Vegas, money laundering still persists. According to one IRS agent in Las Vegas: "In a currency intensive industry it’s virtually impossible to eliminate entry points for money laundering. We work hand-in-hand with the casinos." Money Laundering Still on Rinse Cycle in Las Vegas Casinos

Treasury Report on Money Laundering

This 2005 Treasury Report reveals how casinos are used by criminals to launder counterfeit money and large currency notes. "A constant threat at casinos is insiders taking advantage of their position either to steal or assist others with money laundering. ICE recently charged six people, including a tribal leader, with attempting to steal $900,000 from a Native American casino. Among the charges are conspiracy, theft, and money laundering." 2005 Treasury Report on Money Laundering

Casinos Profit From Under-Reporting Money Laundering

A CBC News investigation revealed suspected money laundering at the B.C. province's casinos goes under-reported. "They say they're being as vigilant as they can, but the conflict of interest is there because these people are flashing the money and ultimately the casino makes money. In a further conflict, provincial governments are both the benefactors and the regulators of casinos." 2008 Suspected Money Laundering Going Under-Reported

Kefauver Committee, Gambling, and Organized Crime

In 1950 and 1951, Senator Estes Kefauver chaired the U.S. Senate's Special Committee to Investigate Organized Crime in Interstate Commerce and discovered vast corruption and crime rings involving gambling and narcotics throughout the United States. The committee became popularly known as the Kefauver Committee. Kefauver Committee Final Report

The Link Between Crime and Gambling Addiction

This June 2011 article from the Pittsburgh Tribune-Review explores the connection between gambling addiction and criminal activity. Because gamblers are allowed to lose such large sums of money in such a short period of time, some turn to stealing to help fuel their addiction and chase their losses. Generally, these are law-abiding citizens who would otherwise never commit crimes. Gambling Addiction Leads Many Down Criminal Road

The Johnson Act of 1951

In 1951, Congress enacted the Transportation of Gambling Devices Act. The Act, more commonly known as the Johnson Act, has been amended several times during the intervening years. Most notably, the Act makes it unlawful to knowingly transport a gambling device to a state where such a device is prohibited by law. Johnson Act

CASINOS AND FLORIDA: Crime and Prison Costs

This 2012 report authored by Richard Herring and David Beggs analyzes the inextricable link between casinos and crime in surrounding counties. Based on the introduction of casinos into Miami-Dade County, a conservative estimate projects a $3 billion dollar impact on just the state prison system over a 10-year period. 2012 Casinos and Crime in Florida Report

Racino Draws Police Attention

The development of The Aqueduct racino in South Ozone Park had citizens concerned of a spike in crime level due to its presence. Because of this underlying fear, cops have been centralized around the racino and as a result, surrounding areas have suffered due to a lack of protection. 106th Precinct gets more cops 

Women Embezzlers Increasing Across Nation

In Minnesota, five of the six most prolific alleged embezzlers last year were women, according to the 2011 Marquet Report on Embezzlement. The U.S. Sentencing Commission says that embezzlement is the only offense nationwide where women outnumber men. The Boston-based Marquet Report, which analyzes prominent embezzlement cases with losses of more than $100,000, found that women made up 64 percent of the alleged perpetrators nationwide. Motive and opportunity are the main reasons to why women are embezzling, and in 2011, 22 percent of embezzlement cases were directly motivated by gambling. Women Embezzlers Increasing Across Nation

Failed revitalization in Atlantic City, and the continued culture of crime

Atlantic City's problems sprout from the inside, in the casinos in particular. Following the casinos is crime and poverty, which only bring the city down further. In order to revitalize the city, the problem must be taken care of on the inside first. As said by Jen A. Miller in this Newswork article, "as continued violence in Atlantic City proves, money is never quick and easy." Failed revitalization in Atlantic City, and the continued culture of crime

Atlantic City Undercover: Analyzing Casino Crime

After a carjacking in the Taj Majal casino parking garage, the mayor or Atlantic City New Jersey is demanding an increase in private security. Security issues have been a plenty in Atlantic City over the years due to the increase in the gambling presence. Atlantic City Undercover: Analyzing Casino Crime

FBI crime numbers show crime has increased in Pennsylvania cities since casinos were built

According to FBI crime numbers and the district attorney of Luzerne County (the location of a casino owned by Mohegan Sun), crime has actually gone up in several categories since the casino opened in 2006. From 2005 to 2010, larcenies shot up 20 percent, property crime jumped 13 percent and aggravated assaults increased 12 percent. “I believe it’s just increasing,” said Luzerne County District Attorney Stefanie Salavantis. “Yes, homicides may have gone down, but every year is different with homicides and rape. The burglaries, the property crime — those things I don’t think have gone down. ... We get approximately 5,000 cases a year, and it’s been increasing.” In Bethlehem, a casino opened in July 2010. While FBI statistics are not available for 2011, the bureau’s numbers for Bethlehem from 2009 to 2010 show a 6 percent increase in violent crime and a 7 percent increase in property crime, as well as jumps in robbery and larceny. Burglary in Bethlehem rose 20 percent over those two years. 2012 Suffolk CEO says casino will reduce crime in Eastie but numbers don’t add up

Regions With Casinos See Increase Sex Trafficking Among Minors

One of the most unfortunate consequences from casinos is that along with them tends to come a rise in crime. Of all the crimes associated with communities around casinos, one of the most prevalent is the sex trafficking of minors. This atrocity is garnering more and more attention nationwide as the number of children affected increases exponentially. Increase in sex trafficking of minors getting local, state attention

Italian mafia uses German online gambling sites for money laundering

This article from Deutsche Welle examines the use of German online gambling sites by Italian mafia members for transferring money made by human trafficking and drugs into legal circulation. Due to unclear laws, the police are powerless to stop the situation, as more and more illegal money exchanges hands over the internet. A prominent Italian lawyer described the "unbelievable" sums of money flowing through internet gambling, which could total almost $2 billion. Online gambling- Playing into the mafias hands

Presence of casinos in Macau leads to major money laundering

Macau, a city known for its many casinos and large gambling industry, is now attracting money laundering in rates much higher than the rest of the world. According to this article by the South China Morning Post, "The significance of... gaming in Macau drives the significance of money laundering in the local marketplace." Big casino industry in cities offers an enticing opportunity for those looking to launder money, another example of crime that follows casinos. 2014 Money laundering huge in Macau

How gambling addictions lead to embezzlement and other crime

This article from Post-Crescent Media recounts examples of how regular, everyday, law-abiding citizens can turn into embezzling criminals when their gambling addictions drive them to do so. In one case, an employee embezzled a half of a million dollars to finance her gambling from the Wisconsin non-profit Goodwill Industries. It just goes to show what happens to the conscience of an average person when they develop a gambling addiction. 2013 Gambling addictions fuel large-scale embezzlements

Embezzlement is on the rise as problem gambling grows

About seven years ago, slot gambling was legalized in Pennsylvania. This form of gambling is especially addictive, so the rise in problem gamblers that followed was to be expected. However, what many didn't see coming was the rise in embezzlement that comes as a direct result of gambling addictions. As this article by the Observer-Reporter explains, many white-collar workers with access to tens of thousands of dollars of company funds embezzle this money to fund their gambling addictions. It's a growing problem in Pennsylvania, and shows how problem gambling drives some to break the law to fuel their addiction. 2014 Embezzlement a growing trend with problem gamblers

Link found between problem gambling and family violence

A new study by the Problem Gambling Research and Treatment Centre at the University of Melbourne, Australia shows a strong link between problem gambling and familial violence. Fifty-three percent of problem gamblers reported some form of family violence in the past 12 months and Forty-four percent reported victimization in the home. These disturbing numbers show yet another effect of problem gambling, and shows further why more casinos isn't a good thing. This HealthCanal study summarizes the study's findings. Problem gambling and family violence strongly linked says new study

FL Lottery shuts down more stores after fraud allegations

This article by the Palm Beach Post documents the Lottery's scramble in Florida to shut down certain stores after a previous investigation by the paper revealed fraud going on between store owners and Lottery players, allowing some players to win an incredible amount of times against all odds. The total of stores that the Lottery has closed down now totals 14 and some of those involved could face criminal charges if these allegations are true. Florida Lottery suspends sales at 11 more stores after newspaper investigation

Slots used to launder money from drug sales

This article from The Topeka Capital-Journal details the arrest of five Kansas residents after they used slot machines in Kansas City, Kansas to launder $200,000 from marijuana sales. According to the article, "The office of U.S. Attorney for Kansas Barry Grissom said Wednesday that investigations showed some members of the group would deposit large sums of money in small denominations into casino slots, cash out without playing and receive a voucher for the money deposited, then cash the voucher at ATM machines throughout the casino, getting their cash back in large denominations." These residents have been indicted on 12 counts including money laundering and conspiracy to distribute marijuana. Feds- slots used to launder money from drug sales

Casinos get strong warning on financial crimes

According to this story from the Las Vegas Review-Journal, "Casinos have long reaped profits from what can politely be described as plausible deniability when it comes to identifying the source of their large cash customers’ income." Jennifer Shasky Calvery, director of the Financial Crimes Enforcement Network (FinCEN), wants to put a stop to that. In a speech at the annual gambling trade show, G2E, Shaky Calvery called for a cultural change inside the casino business to root out and stop financial crimes, such as money laundering. This comes as an ominous warning for casinos, who often benefit from some shady deals. Reluctant casinos get clear warning on money laundering

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