Crime
Sex trafficking ring suspects may have made millions and tried to hide it at casinos
Dallas sues to shut down 3 massage parlors accused of having prostitutes sleep in filthy rooms
Geolocation and Online Gambling
Former Assistant US Attorney Mike Fagan, an expert in online gambling prosecution, wrote the memo below about the ineffectiveness of geolocation technology.
Journalists Reveal How Casinos are Complicit in Money Laundering
Inspired by a criminal case of money laundering in Ontario, CBC investigative journalists used $30,000 to see if they could launder it through two B.C different casinos. They were able to convert $24,000 into “clean money,” an 80 per cent “success” rate.
New Illinois Report: Increased access to video gambling leads to to rise in violent and property crimes in Chicago
An academic paper written by PhD candidates at the University of Illinois took a closer look at the expansion of video gambling machines in the state and their relation to crime.
According to the paper, “increased access to video gambling leads to a statistically significant rise in violent and property crimes in Chicago.”
More from the paper:
On average, being near at least one video gambling establishment is associated with a 7.5% and 6.7% increase in violent and property crime. These estimates control for potential confounders, including access to riverboat casinos, community area specific trends, and demographic controls. Reassuringly, these effects are strongest in the block groups closest to video gambling establishments. The effects decrease as gambling access declines, becoming zero after moving three census block groups away, and remaining at zero thereafter.
US Treasury Report on Money Laundering Includes Spotlight on Casinos
This 2005 United States 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.”
Philadelphia Federal Reserve Bank: Costs of Predatory Gambling Outweigh Any Benefits
This report from the Federal Reserve Bank of Philadelphia concludes that the local benefits of casinos would be outweighed by costs such as increases in pathological gambling, crime and personal bankruptcy.
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
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.