Category Archives: Crime

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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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… …

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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 …

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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. …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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. …

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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 …

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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

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

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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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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 …

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