Free ebooks ==> www.Ebook777.com david g schwartz is Director of the Center for Gaming Research at the University of Nevada, Las Vegas He is the author of Suburban Xanadu: The Casino Resort of the Las Vegas Strip CUTTING THE WIRE “As a student of American culture and of gambling, I find his analysis intriguing and insightful Unlike some other writers in the past, he takes a balanced attitude toward the subject of gambling He understands that gambling is not only pervasive in our society, but that it is indigenous and impossible to stop.” — james f smith, author of The Business of Risk: Commercial Gambling in Mainstream America “I find this a compelling piece of work Schwartz proves himself to be a disciplined historian who does not hesitate to get his hands dirty in archives, understands how to conceptualize his subject in terms of local, national, and international affairs, and writes with refreshing vigor.” CUTTING THE WIRE GAMING PROHIBITION AND THE INTERNET DAVID G SCHWARTZ What David Schwartz calls “the pell-mell history of legal gaming in the United States” is the product of Americans’ ambivalent desire both to gamble and to control gambling, to enjoy the public revenues derived from sanctioned gambling and to avoid the social and legal corruption that too often ensue from it The Wire Act, passed in 1961 as part of Attorney General Robert F Kennedy’s crusade against organized crime, was intended to bar the use of telephone and telegraph lines to transmit gambling information, thereby controlling illegal bookie operations and other betting activities Recently, the act has achieved new importance with the advent of Internet wagering, reflecting both the evolution of gaming technologies and the unremitting challenge of controlling illicit gambling Cutting the Wire recounts the development of the Wire Act, how it was used against the involvement of organized crime in American gambling — both legal and illegal — and how federal authorities are using it today to control online wagering through offshore facilities By placing the Wire Act into the larger context of Americans’ continuing ambivalence about gambling, Schwartz produces a provocative, deeply informed analysis of a national habit and the vexing legal, social, economic, and political predicaments that derive from it Praise for SCHWARTZ CUTTING THE WIRE g a m b l i n g / l aw e n f o r c e m e n t — paul j vanderwood cover photo: John Foxx / fotosearch cover design: Carrie House How Robert Kennedy’s anti-mob Wire Act restricts online gambling today UNIVERSITY OF NEVADA PRESS NEVADA www.Ebook777.com cutting the wire Free ebooks ==> www.Ebook777.com the gambling studies series www.Ebook777.com CUTTING THE WIRE GAMBLING PROHIBITION AND THE INTERNET DAVID G SCHWARTZ University of Nevada Press / Reno & Las Vegas Free ebooks ==> www.Ebook777.com The Gambling Studies Series Series Editor: William R Eadington University of Nevada Press, Reno, Nevada 89557 usa Copyright © 2005 by University of Nevada Press All rights reserved Manufactured in the United States of America Design by Carrie House Library of Congress Cataloging-in-Publication Data Schwartz, David G., 1973– Cutting the wire : gambling prohibition and the Internet / David G Schwartz.— 1st ed p cm — (The gambling studies series) Includes bibliographical references and index isbn 0-87417-619-0 (hardcover : alk paper) isbn 0-87417-620-4 (pbk : alk paper) Internet gambling—Law and legislation—United States—Criminal provisions Gambling—Law and legislation—United States—Criminal provisions Gambling—United States—History I Title II Series kf9440.s39 2005 345.73'0272'02854678—dc22 2005010632 The paper used in this book meets the requirements of American National Standard for Information Sciences — Permanence of Paper for Printed Library Materials, ansi z.48-1984 Binding materials were selected for strength and durability fir s t pr in t ing 14 13 12 11 10 09 08 07 06 05 www.Ebook777.com This book is dedicated to the memory of Shannon L Bybee Jr., gaming regulator, industry leader, and educator Shannon helped to write the laws that govern legal Nevada gaming, and I wish that he could be with us to see gaming law fully adapt to the digital era His wise counsel and good advice, I’m sure, would help us immeasurably He was a mentor and friend who encouraged me, like so many other people, by his example and with his support Free ebooks ==> www.Ebook777.com www.Ebook777.com contents Preface ix Introduction: Kennedy’s War Continues Legal Vices and Illicit Diversions The Anxious Decade 80 Booking the Bookies 117 A Money Jungle From Sea to Sea March Madness 12 45 Camelot Strikes Back Point, Click, and Bet 141 176 199 Epilogue: Prohibition in a Borderless America Appendix 1: The Wire Act 219 229 Appendix 2: Timeline of Federal Gaming Legislation Notes 231 Bibliography Index 273 259 230 Free ebooks ==> www.Ebook777.com www.Ebook777.com preface My first book, Suburban Xanadu: The Casino Resort on the Las Vegas Strip and Beyond, grew out of my doctoral dissertation in U.S history at ucla Since I grew up with the casino industry in Atlantic City, New Jersey, the history of casinos was a rather obvious topic for my dissertation To tell a story about that world and help people better understand the place of casinos in American society just came naturally Where to go from there? The explosion of Internet gaming, I thought, was just as shrouded in mystery as the origins of casinos The current American irresolution over Internet gaming provided the impetus for this book With a better understanding of the past, both sides of the current debate might be more thoughtfully conducted I think that history has great lessons for both those who are in the business of gaming and those who oppose gaming expansion — and certainly for those charged with creating and enforcing the laws that deal with gaming This book begins with an introduction, followed by seven chapters and an epilogue The introduction, “Kennedy’s War Continues,” discusses how the Wire Act symbolizes the uneasy American pursuit of gaming and gives a brief introduction to the act The first chapter, “Legal Vices and Illicit Diversions,” sums up the history of legal and illegal American gaming, describes the long connections between gaming and technology, and explains the development of the race wire service Chapter 2, “The Anxious Decade,” describes the harried investigations into organized crime of the 1950s The revelations brought to light by these investigations convinced Americans that they faced a profoundly powerful “enemy within” — organized crime — and that a favored pastime, gaming, directly funded this enemy With the first two chapters setting the stage, the third chapter, “Camelot Strikes Back,” provides an in-depth look at the circumstances attending the birth of the Wire Act The act was part of Attorney General Robert F Kennedy’s larger initiative to “get organized crime,” and it is necessary to see it in ix Free ebooks ==> www.Ebook777.com 268 bibliogr aph y “Sportsline.com, Inc Announces Sale of Las Vegas Sports Consultants.” cbs Sportsline.com, Investors Relations November 24, 2003 Accessed online at: http:// cbs.sportsline.com/info/ir/press/2003/lvscsale Stamos Jr., George “Tropicana.” Las Vegas Sun Magazine, August 26, 1979 Sterngold, George “Virtual Casino Is Coming, But Regulation Is Still a Big Question.” New York Times, October 28, 1996 Strumpf, Koleman “Illegal Sports Bookmakers.” Paper presented at the Twelfth International Conference on Gambling and Risk Taking, Vancouver, B.C., Canada, May 2003 “Tribe Starts New Business: Gambling Site on Internet.” New York Times, July 5, 1997 Trussell, C P “House Votes Bill to Combat Crime.” New York Times, August 24, 1961 —— “Six Crime Bills Passed in Senate.” New York Times, July 29, 1961 “U.S Drive Opened on Bet Tipsters.” New York Times, March 6, 1964 “U.S Fight on Organized Crime Brings Wide Rise in Convictions.” New York Times, January 12, 1964 “U.S Jury Indicts 13 in Betting Ring.” New York Times, June 28, 1961 “U.S Seizes Here in Gambling Raid.” New York Times, November 29, 1961, 35 “The Valachi Show.” New York Times, October 6, 1963 Walsh, Tom “Words, Plans, Won’t Build Classy Hotels.” Detroit Free Press, November 6, 2003 “War on Syndicated Crime Urged of AMA.” American City, January 1950 Will, George F “Electronic Morphine.” Newsweek, November 25, 2002 “Western Union Asks New Gambler Curbs.” New York Times, June 4, 1952 “West Fears Gang Invasion.” New York Times, September 7, 1947 “Wire Bets Sifted by Western Union.” New York Times, April 28, 1950 Wood, Lewis “Truman Pledges to Aid Campaign Against Forces of ‘Vice and Greed.’” New York Times, February 16, 1950 Government Documents Federal The Attorney General’s Conference on Organized Crime, February 15, 1950 Washington, D.C.: Department of Justice, 1950 Bureau of Justice Sourcebook of Criminal Justice Statistics Albany, N.Y.: Hindelang Criminal Justice Research Center, 1974–2002 Congressional Quarterly Almanac 81st Cong., 2d sess., 1950 Vol Washington, D.C.: Congressional Quarterly News Features, 1951 Congressional Quarterly Almanac 87th Cong., 1st sess., 1961 Vol 17 Washington, D.C.: Congressional Quarterly, 1961 Congressional Quarterly Almanac 87th Cong., 2d sess., 1962 Vol 18 Washington, D.C.: Congressional Quarterly, 1962 www.Ebook777.com bibliogr aph y 269 Congressional Quarterly Almanac 91st Cong., 2d sess., 1970 Vol 26 Washington, D.C.: Congressional Quarterly, 1970 Congressional Quarterly Almanac 102d Cong., 1st sess., 1991 Vol 47 Washington, D.C.: Congressional Quarterly, 1991 Cornell Law School Development of the Law of Gambling: Federal Prepared for the Commission to Review the National Policy on Gambling, 1974 Department of the Treasury-Internal Revenue Service Form 886A Development of the Law of Gambling Washington, D.C.: U.S Government Printing Office, 1977 Fahrenkopf, Frank “Testimony Before the House Financial Services Committee Re: Internet Gaming.” July 12, 2001 Accessed online at: http://www.american gaming.org/Press/speeches/speeches detail.cfv?ID=108 Illegal Gambling: Numbers, Dice, Bookmaking fbi Police Training Video Date unknown, likely early 1970s “Jay Cohen Convicted of Operating an Off-Shore Sports Betting Business.” U.S Justice Department press release, February 28, 2000 John F Kennedy: Containing the Public Messages, Speeches, and Statements of the President January 20 to December 31, 1961 Public Papers of the Presidents of the United States Washington, D.C.: U.S Government Printing Office, 1962 Kyl, Jon “Crime and Justice Issues.” Accessed online at: http://kyl.senate.gov/legis_ center/crime.cfm National Gaming Impact Study Commission “Final Report,” 3–9 Washington, D.C.: U.S Government Printing Office, 1999 Accessed online at: http://govinfo.library unt.edu/ngisc/reports/pathch3.pdf National Indian Gaming Commission Tribal Gaming Revenue, 2002 Accessed online at: http://www.nigc.gov/nigc/nigcControl?option=TRIBAL_REVENUE Organized Crime and Racketeering Section Racketeer Influenced and Corrupt Organizations (RICO): A Manual for Federal Prosecutors Washington, D.C.: U.S Department of Justice, 1988 President’s Commission on Law Enforcement and Administration of Justice The Challenge of Crime in a Free Society Washington, D.C.: U.S Government Printing Office, 1967 President’s Commission on Organized Crime Organized Crime and Gambling: Record of Hearing VII, June 24–26, 1985 Washington, D.C.: U.S Government Printing Office, 1985 Second Interim Report of the Special Committee to Investigate Organized Crime in Interstate Commerce Washington, D.C.: U.S Government Printing Office, 1951 Selected Speeches of Dwight David Eisenhower Washington, D.C.: U.S Government Printing Office, 1970 Third Interim Report of the Special Committee to Investigate Organized Crime in Interstate Commerce Washington, D.C.: U.S Government Printing Office, 1951 Free ebooks ==> www.Ebook777.com 270 bibliogr aph y Transmission of Gambling Information Report Number 500 83d Cong., 1st sess Washington, D.C.: U.S Government Printing Office, 1953 United States Code Congressional and Administrative News 87th Cong., 1st sess., 1961 Vol 2: Legislative History St Paul: West Publishing, 1961 U.S Congress House Committee on Interstate and Foreign Commerce Hearings Before the Committee on Interstate and Foreign Commerce of the House of Representatives on the Bills H.R 25825, to Prohibit Interstate Transportation of Pictures and Descriptions of Prize Fights and H.R 2160, to Prevent the Nullification of State Anti-Gambling Laws by International or Interstate Transmission of Race-Gambling Bets or Racing Odds Washington, D.C.: U.S Government Printing Office, 1911 U.S Congress House Committee on the Judiciary Hearings Before Subcommittee Number of the Committee of the Judiciary, House of Representatives, on H.R 7975, a Bill to Prohibit Certain Acts and Transactions with Respect to Gambling Materials 83d Cong., 2d sess Washington, D.C.: U.S Government Printing Office, 1954 U.S Congress Senate Committee on Government Operations Gambling and Organized Crime Report of the U.S Senate Permanent Subcommittee on Investigations Washington, D.C.: U.S Government Printing Office, 1962 U.S Congress Senate Committee on Interstate Commerce Hearing on S 3253, a Bill to Prevent the Nullification of State Anti-Gambling Laws by International or Interstate Transmission of Race-Gambling Bets or Racing Odds 64th Cong., 2d sess Washington, D.C.: U.S Government Printing Office, 1917 U.S Congress Senate Committee on Interstate and Foreign Commerce Transmission of Gambling Information: Hearings Before a Subcommittee of the Committee on Interstate and Foreign Commerce Committee, United States Senate, Eighty-first Congress, Second Session, on S 3358 Washington, D.C.: U.S Government Printing Office, 1950 U.S Congress Senate Committee on the Judiciary Hearings Before the Committee on the Judiciary of the United States Senate, 87th Congress, First Session, on S 1653, S 1654, S 1655, S 1656, S 1657, S 1658, S 1665 87th Cong., 1st sess Washington, D.C.: U.S Government Printing Office, 1961 U.S Congressional Code Service Laws 81st Congress—Second Session, 1950 Washington, D.C.: U.S Government Printing Office, 1950 State and Municipal Colorado State Gaming Statistics, 1991–2002 Accessed online at: http://www gaming.state.co.us/dogstats.htm Connecticut Division of Special Revenue Annual Report 2001–2002 Fund for the City of New York Legal Gambling in New York: A Discussion of Numbers and Sports Betting New York: Fund for the City of New York, 1972 “How to Play Sports Action.” Pamphlet from Oregon Lottery, 1989 In Promotional and Publicity Materials: Oregon Lottery unlv Special Collections “Judge Issues tro to Stop Internet Lottery in Missouri.” Press release, Missouri Of- www.Ebook777.com bibliogr aph y 271 fice of the Attorney General, January 29, 1998 Accessed online at: http://www ago.state.mo.us/012998.htm Maryland Department of Legislative Services “Overview of Issues Related to Video Lottery Terminals.” Annapolis: Office of Policy Analysis, 1993 Nevada Gaming Commission Gaming Nevada Style Carson City: Nevada Gaming Commission, 1981 Nevada State Gaming Control Board, Economic Research Section Nevada Gaming Abstract Carson City: Nevada State Gaming Control Board, 1972, 1981 New Jersey Casino Control Commission 2000 Annual Report Trenton: Casino Control Commission, 2000 —— 2002 Annual Report Trenton: Casino Control Commission, 2002 New Jersey Department of Community Affairs Review of the Probable Impact of Atlantic City Casino Development Trenton: Bureau of Regional Planning, 1980 New Jersey Gambling Study Commission Report to the Governor and Legislature February 5, 1973 “New Jersey Settles Internet Sports Betting Suits.” Press release, Office of the Attorney General, June 11, 2002 Accessed online at: http://www.state.nj.us/lps/ge/ 2002news/internet_settlement.htm “Nixon Says No to Indian Internet Gaming.” Press release, Missouri Office of the Attorney General, December 29, 1997 “Statement by Eliot Spitzer Regarding New York Racing Association.” Accessed online at: http://www.oag.state.ny.us/press/2003/jun/jun24b_03.html International Isle of Man Online Gambling Regulation Act 2001 Accessed online at: http://www.gov im/gambling/acts/gamblingregulation2001.pdf Judicial “Ruling on Appeal of United States v Cohen.” U.S Court of Appeals, Second Circuit 260 f.3d 68 July 31, 2001 Sarafa, Melinda “Jay Cohen, Petitioner, Against United States of America, Respondent: Memorandum of Law in Support of Motion Pursuant to 28 u.s.c § 2255.” Brafman and Ross, 2002 Habeas Corpus, Affidavit in Support of 2255 Petition (Affidavit of Melinda Sarafa; 33 pp., MS Word), 2002, 23 Accessed online at: http:/www.freejaycohen.com/LegalCasePg.html Sentencing Transcript United States v Jay Cohen Trial Transcript United States v Jay Cohen “United States of America v Jay Cohen: Brief for the United States of America.” Second Circuit Appeal, Docket No 00-1574 2002 U.S Supreme Court California v Cabazon Band of Mission Indians, 480 u.s 202 (1987) Accessed online at: http://caselaw.lp.findlaw.com Free ebooks ==> www.Ebook777.com 272 bibliogr aph y U.S Trade Representative Before the World Trade Organization: Measures Affecting the CrossBorder Supply of Gambling and Betting Services January 9, 2004 Accessed online at: http://www.ustr.gov/enforcement/2004-01-09-gambling-2ndwritten.pdf World Trade Organization United States—Measures Affecting the Cross-Border Supply of Gaming and Betting Services: Report of the Panel wt/ds285/r10 November 2004 Accessed online at: http://www.wto.org/english/tratop_e/dispu_e/285r_e.pdf Internet http://www.antigua-barbuda.com/ http://www.debevoise.com/about/about.asp http://www.freejaycohen.com http://www.igcouncil.org/ 5http://home.jockeyclub.com/factbooks/handle.html http://www.majorwager.com/home.cfm http://www.therx.com/index.html Interviews Telephone interview with Jeff Bryson, Chief, Gambling Investigation, Department of Justice, Gambling Control Division State of Montana February 20, 2004 Personal interview with Jay Cohen December 15, 2003 Federal Prison Camp Nellis, Las Vegas, Nevada Personal Communications Heneghan, Daniel, Director of Communications, New Jersey Casino Control Commission January 5, 2004 Rose, I Nelson September 2003 www.Ebook777.com inde x Accardo, Tony, 50 Accardo-Guzik-Fischetti syndicate, 71–72, 236n13 See also Syndicate agricultural futures, 24 Alabama handbook operators, 89 Amazon.com, 177, 195–96 American Bar Association, 131 American Civil Liberties Union (aclu), 102, 110, 190 American Coin Machine Manufacturers Association, 62, 63 American Gaming Association, 187–88 American Indians See Native Americans American Municipal Association, 52–53, 54, 56 American Net, American Revolution, 17 Anne Arundel County (Md.), 27 Annenberg, Moses L (Moe), 40–41, 118 Annenberg, Walter, 40 anti-betting bills: 1910, 87, 88–90; 1953, 90–92; 1954, 92; 1957–61, 93 antigamblers, 5–6, 49–50 antigambling laws: colonial period, 16–17; England, 149–50; South, 17, 24 Antigua: free-trade zone, 178; gaming operator regulation, 181; Internet betting sites, 8–9; legality of online bets, 1, 2; licensed sportsbooks, 180; limits to shelter from prosecution, 183; online gaming regulation, 193–94; suit against United States, 10, 215–17; as World Sports Exchange location, 179, 201, 205, 206, 209 Apalachin (N.Y.) meeting of mob leaders, 76–77 Arizona: lottery, 148; wide-open gaming, 150 Arkansas, 23 armed forces slot machines, 142 arrests, gambling, 137–38, 139 Aspinalls, 184–85 Assembly Bill 578 (Nevada), 197–98 Associated Press, 121 Association for the Suppression of Gambling, 23 Athletic Publications, Inc., 121–22 Atlantic City (N.J.): casino regulation, 194–95; casinos, 153–54, 159; federal raid, 112; horse rooms, 34 at&t, 91, 98, 102–3 Attorney General’s Conference on Organized Crime, 56–60, 61, 141 attrition strategy, 132 Auerbach, Red, 173, 174 Australia, 197 Balinese Room (Galveston, Tex.), 73 Bank of the United States, 18 Ban on Gaming Data bill, 60–61, 64, 65–69, 90 Barbara, Joseph, 76 Barbuda, 193 Baring, Walter, 62–63 Bartlett, Charles, 89 baseball, 30, 170, 189, 201 baseball pool cards, 30 basketball: college, 30, 125–26; lottery, 173; professional, 173, 201, 203 Beck, Dave, 75, 83 Bergen County (N.J.), 51–52, 73 betting on horses: cheating, 235n73; history, 12, 27–29, 142; legality of, 12–13, 23; off-track betting (otb), 143–44, 145–46; organized crime, 124; remote wagering, 143–44; technological advances, 33–35 See also horse races; pari-mutuel wagering; race wire service Bible, Alan, 58 Big Game (lottery), 149 Biloxi (Miss.): casinos, 157, 158; layoff bets, 103 bingo, Native American, 164–65, 167 273 Free ebooks ==> www.Ebook777.com 274 inde x Blackhawk (Colo.), 156 blackjack, 32, 157 blacklegs, 19–20 See also professional gamblers Black Sox scandal, 30 bookmakers: arrests, 137–38, 139; betting on horses, 28–29; layoff betting, 123–24, 128; New York City, 127–28; off-track betting (otb), 66; operation of business, 127–28; and organized crime, 123, 128–29; and police, 25, 124–25, 135–36, 137–38; record destruction, 135, 136; sports betting, 119, 120–23, 169, 171, 172; tax on, 137, 169; vigorish, 124; and Wire Act, 134, 138 See also race wire service Boston College, 125–26 Bowron, Fletcher, 53, 68 Bradley University, 125 Brafman, Benjamin, 1, 2, 199, 205–8, 209, 210 bribery and sporting events, 108 Brolaski, Harry, 88, 89, 97, 118 Bureau of Indian Affairs, 163, 164, 166 Bureau of Narcotics, 78 Burkett, Elmer, 87–88 Burns, Patrick, 41, 42 Cabazon band gaming, 165–66, 212 California: compact with tribal governments, 221; crime commissions, 51; lottery, 148; Native American gaming, 165–66; parimutuel wagering, 26 California Nations Indian Gaming Association, 168 Cannon, Howard, 169 Capehart, Homer, 68, 71 Capital otb, 1, 178, 179–80, 208, 210 See also off-track betting (otb) Capone, Al, 39, 50, 67 See also Syndicate card gambling, 23–24, 32 Caribbean basin nations, 193–94, 195 See also Antigua Carroll, James, 68, 91, 206 casino riverboats, 154–55, 158–59 casinos: Atlantic City, 153–54, 159; Biloxi, 157–58; Covington (Ky.), 99; Detroit, 160; Florida, 24; history, 151–62; Illinois, 12, 155, 158; Internet, 184–86, 189–90; Las Vegas, 161–62; legality, 12; license corruption scandals, 187; Mississippi, 157–59; Nevada, 12, 26, 151–53; New Orleans, 159–60; Newport (Ky.), 99; Ontario, 160; technical innovations, 36 Casino Windsor, 160 Catskills, federal raid of, 112 CBS Sportsline, 123 Central City (Colo.), 156 Challenge of Crime in a Free Society, The, 129–30 Champion v Ames (1902), 61 Chase, Hal, 30 cheating, in betting on horses, 235n73 Chicago: layoff bets, 103; organized crime, 130–31; organized gambling, 58–59; racetrack and handbook wagering, 38–39; race wire service, 41–43 Chicago Crime Commission, 48–49, 59, 73 See also Peterson, Virgil Chicago Syndicate, 50–51 Chicago White Sox, 30 Child Online Protection Act (1998), 190 Cicero (Ill.), 51 Cincinnati wolf-traps, 20 Circus Circus Enterprises, 161–62 City College of New York, 125 Clan of the Mystic Confederation, 19–20 Clinton, Bill, 190 Coeur d’Alene Indians, 179, 200 Cohen, Jay: as alleged bookie, 205, 206–7; appeal of conviction, 210–12; conviction, 1–2, 9–10, 209–10; imprisonment, 212–13; reflections on conviction, 213–14; resigns as World Sports Exchange president, 210; sentencing, 210; surrender to fbi, 204 See also United States v Cohen; World Sports Exchange (wse) Cohn, Roy, 82 Coin Machine Institute, 62, 63 college sports: basketball, 30, 125–26; betting on, 202; football, 29, 120, 126, 243n6 colonial period, 15–17 Colorado: limited gaming, 156; race wire service, 41–42 Commission on the Review of the National Policy Toward Gambling, 170, 189 common carriers, 91, 101, 103–4 See also telegraph; telephone companies Communications Decency Act (1996), 190 compulsive gambling, 181–82, 220 Congress: anti-crime measures, 108; anti-Internet gambling measures, 186, 190–93; college sports betting, 202; interstate transportation of lottery materials, 6, 24– 25, 26, 149; steamboat regulations, 33 Connecticut: lottery, 147; Native American gaming, 167 Constitution, interstate commerce clause, 88–89 www.Ebook777.com inde x Continental Press Service, 41–43, 44, 48, 53 Conyers, John, 198 Cook County (Ill.), 58–59 Corporate Gaming Acts (Nevada), 152 Costa Rica, 181, 194, 204 Costello, Frank, 5, 72, 75–76, 91 Costello-Adonis-Lansky syndicate, 71–72, 75 Covington (Ky.), 99 Coy, Wayne, 67, 68 Crafts, Wilbur, 88–89, 97 Cressey, Donald R., 170–71 crime: after wars, 46; as local problem, 46, 58 See also organized crime crime commissions, 48–49, 51, 73 Cripple Creek (Colo.), 156 Crosser, Robert, 62 Croswell, Edgar, 76–77 Crump, Edward H., 69, 70 Curaỗao, 194, 204 Daglione, Joseph, 202 Daily Racing Form, 40, 66, 91 Dawes Severalty Act (1877), 163 Deadwood (S.D.), 156–57 DeBartolo, Eddie, 158 Debevoise and Plimpton (law firm), 9, 202–3, 207 DeFeo, Michael, 123, 133–34 Delaware football lottery, 172–74 Del Webb Corporation, 152 DeMarco, Joseph, 2, 204–5, 215 Department of Housing and Urban Development, 164, 166 Depew, Chauncey, 35 Detroit: casinos, 160; federal raid, 112 dice gambling, 23–24 Edwards, Edwin, 158 Eisenhower, Dwight, 92 electric tote See totalisator Electronic Frontier Foundation, 177, 190 Ellis, Margaret, 89 El Rancho Vegas, 151 Emerald Casino, 158 Empire News Company, 39 Enemy Within, The (Robert Kennedy), 78, 82, 83, 98 Engelhard, Jack, 222–23 England: anti-gaming laws, 149–50; lottery, 15–16, 17; sports betting, 170 enterprise strategy, 132–33 Erickson, Frank, 68, 91, 206 Excalibur, 161 275 excise tax: on bookmaking, 137, 169; on slot machines, 64 Fahrenkopf, Frank, 187–88, 192 faro, 20, 32 fcc See Federal Communications Commission (fcc) Federal Bureau of Investigation (fbi): Nevada casino surveillance and audits, 110; online sportsbooks inquiry, 203–4; organized crime investigation, 55–56, 78, 133–34; racing wire service investigation, 54–55; training video on betting operations, 135; World Sports Exchange investigation, 203–4, 211 Federal Communications Commission (fcc): Attorney General’s Conference on Organized Crime, 56–60; Ban on Gaming Data bill, 64, 66–67, 69; Wire Act, 101, 118, 193 Federal Crime Commission, 72 federal government, slot machines operated by, 142 Federal Prison Camp Nellis, 212–13 Federal Trade Commission, 183 fiction, gambling in, 222–24 fingerprinting of Social Security number applicants, 59, 61 Flamingo, 152, 162 Florida: casinos, 24; Native American gaming, 164–65; pari-mutuel wagering, 26; race wire service, 41, 43; slot machines, 26–27 football: college, 29, 120, 126, 243n6; lottery, 172–74; pool cards, 30, 119; professional, 9, 170, 172, 189, 201–3; spread, 234n47 four-waves model, 232n2 Foxwoods Casino, 167 France, sports betting in, 170 Fugitive Felon Act, 3, 56, 60, 93, 104 Fund for New York City, 171–72 Galaxy Sports, 204 Galveston (Tex.), 73 gamblers, characteristics of, 221 gambling: American attitudes toward, 221–27; estimate of nation’s total bill in 1936, 31; estimates after World War II, 47–48; government attitudes toward, 141–42; industry size, 219; legalization, 12–13, 155, 219–20; in literature, 222–24; New York City, 138, 145; and off-track betting (otb), 145; and organized crime, 123, 130–31, 220–21; role in American society, Free ebooks ==> www.Ebook777.com 276 inde x 139–40; as solution to state budget problems, 220–21 gambling addiction, 181–82, 220 gambling arrests, 137–38, 139 gambling cruises, 53 gambling hells, 19–20, 23 gambling houses, 20–23 Gargotta, Charles, 43 Gautreaux, Tim, 223–24 General Agreement on Trade in Services (gats), 215–17 General News Bureau, 38, 40 Genovese, Vito, 76, 109 Georgia: agricultural futures, 24; handbook operators, 89; lottery, 24, 146, 148 Godfather, The (Puzo), 115 Golden Palace, 185 Goldfarb, Ronald, 112, 242n78 Goldwater, Barry, 74 Griesa, Thomas P., 1–2, 204, 208, 209, 210, 211 Gross, Harry, 124–25 Group One, 179, 213 handbook operators, 89 handicapping, 119, 120–23, 128 Hanson, Spencer, 204 Harrah’s Entertainment, 36, 159–60, 189–90, 221 Harvard University, 16 Hecht, Bill, 120–21, 122 Highway to Hell, The, 28 Hilton Hotels, 152, 187 Hirschfeld, Leo, 121–22, 123 Hoffa, James R (Jimmy), 3, 75, 77–78, 80, 83–84 Hoover, J Edgar, 55, 78, 83, 84–85, 105, 114 horse races: history, 27–28; simulcasting of, 144 See also betting on horses horse rooms, 28, 34, 36 House Committee on Interstate and Foreign Commerce, 88–90 House Judiciary Committee, 92, 97 House Judiciary Subcommittee on Economic and Commercial Law: sports betting, 173 houses of entertainment, in colonial period, 16–17 Hull, Thomas, 151 Idaho slot machines, 27 Illinois: casino license corruption scandals, 187; casinos, 12, 158; lottery, 147; parimutuel wagering, 26, 39; riverboat casinos, 155 Illinois Gaming Board, 158 immunity provision, 109, 113–14 income tax on bookmaking, 137, 169 Indecent Proposal (Engelhard), 222–23 Indian Finance Act, 164 Indian Gaming Regulatory Act (1988), 166–67, 179, 212 Indian New Deal, 163 Indian Reorganization Act (1934), 163 Indians See Native Americans Indio (Calif.), 166 industrial workplaces, gambling in, 31 instant lottery games, 148 Interactive Gaming Act (2001) (Australia), 197 Interactive Gaming and Communications Corporation, 8, 200 Interactive Gaming Council, 195 Internal Revenue Board, 64–65 Internal Revenue Service (irs), 72, 110, 130, 137 Internet: development, 176; and globalization, 225–26 Internet commerce, 177–78 Internet gambling: advocates, 189–90; casinos, 184–86, 189–90; critics, 181–83, 186– 89; development, 178–86, 189–90; extent, 10, 184; legalization by other countries, 193–94, 195, 196–97; lottery games, 179, 181, 200; measures against, 186, 190–93; operator credibility, 182; state attorneys general suits against operators, 200–201; Wire Act, 183 Internet Gambling Prohibition Act, 189, 191 interstate commerce clause of Constitution, 88–89 Interstate Commerce Commission, 39 Interstate Horseracing Act (1978), 144 Iowa: gaming legalization pattern, 155; lottery, 149; race wire service, 41–42; riverboat casinos, 154–55 Island Casino, 204 Isle of Man, 185, 186, 196–97 Ives Pool Bill (New York), 28 Jackson, Andrew, 18 Jaffe, Ben, 75 Jefferson, Thomas, 17 Jenner and Block (law firm), 212 Johnson, Earl, 110 Johnson, Edwin C., 61, 65, 70 Johnson, Lyndon, 83, 114, 129–30 Johnson Slot Machine Act (1951), 72, 78, 93, 108–9 www.Ebook777.com inde x juries, and gambling offenses, 137 Justice Department: Attorney General’s Conference on Organized Crime, 56–60; Ban on Gaming Data bill, 64, 65, 66, 67, 69; drive against illegal gaming under Robert Kennedy, 111–12; Nevada casino investigation, 111; New Orleans interstate gambling ring, 107; Newport (Ky.) gambling crackdown, 107; online sportsbooks inquiry, 203–4; Organized Crime and Racketeering Section, 85–86, 114, 130; proposed racket squads, 72; racketeer investigation and prosecution, 73; slot machine bill, 62, 63, 64–65; Wire Act, 193; wiretapping law, 110 Kansas City race wire service, 43 Kansas lottery, 148–49 Kastel, Phil, 75 Keating, Kenneth, 92 Kefauver, Estes: Attorney General’s Conference on Organized Crime, 56, 60; attrition strategy, 132; Ban on Gaming Data bill, 65, 67–68, 69; bill for investigation into organized crime, 69, 70; legacy, 73–74; methods, 71; Narcotics Control Act, 74; organized crime and illegal race bookies, 123; Pennsylvania judicial corruption investigation, 69–70; Wagering Tax Act, 73; Wire Act, 97–98, 103–4 Kefauver Committee: and Accardo-GuzikFischetti syndicate, 71–72, 236n13; Ban on Gaming Data bill, 72; cooperation with, 60; and Costello-Adonis-Lansky syndicate, 71–72, 75–76; creation, 70; disbanded, 73; initial work, 70–71; legacy, 71, 73; race wire service investigation, 41, 42–43, 44, 124; and syndicated crime, 50–51, 71–72, 236n13; televised hearings, 71–73 Keller, Bruce, 202–3 Kennedy, Charles, 90 Kennedy, John F., 3–4, 74–75, 105, 106, 114 Kennedy, Robert F (Bobby), 2–3, 4, 5, 7; attrition strategy, 132; concerns other than organized crime, 112–13; early career, 81–82; federal raids on illegal gaming, 112; immunity provision, 109, 113–14; and J Edgar Hoover, 78, 83, 84–85, 114; and James Hoffa, 3, 77–78, 80, 83–84; Johnson Slot Machine Act, 108–9; Justice Department drive against illegal gaming, 111–12; legacy, 114–16, 130; and Lyndon 277 Johnson, 83, 114; Nevada casino investigation, 110–11; Newport (Ky.) gambling crackdown, 107; organized-crime investigation, 77–81, 84–86, 94–95, 106–7; restrictions on remote supply of gambling, 216; roulette wheels, 134; social gambling excluded from Wire Act, 80, 100, 101–2; and Wire Act, 2–5, 7, 95–105, 117, 129; wiretapping law, 105, 109–10, 113–14 Kentucky: betting on horses, 28; lottery, 148; race gambling, 90 Kerner, Otto, 58–59 Kerzner International, 185 Kindt, John, 182 Kinnee, Kevin, 117, 136, 137 Kuhn, Bowie, 170, 189 Kyl, Jon, 186, 189, 191, 192–93 La Cosa Nostra, 109, 170–71 See also organized crime Lac Vieux Desert Band, 160 Lanni, Terri, 185, 190, 214 Lasoff, Benjamin, 103 Lasoff, Robert, 103 Las Vegas: casinos, 161–62; emergence as national resort, 78; oddsmakers, 122–23; race wire service, 41 Las Vegas Sports Consultants, 122–23 Las Vegas Strip, 151, 160–62, 212 law enforcement authorities, and Internet gambling, 183 layoff betting, 29, 103, 123–24, 128, 170–71 Leach, Jim, 192 Levin, Hymie, 41 limited gaming, 156–57 line-setters, 121–23 line subscription service, 121–23, 128 literature, gambling in, 222–24 Long Island University, 125 Los Angeles: gaming cruises, 53; layoff bets, 103 Los Angeles Highway (Las Vegas), 151 See also Las Vegas Strip lotteries: abolishment of, 18–19, 23; British colonies, 17; England, 15–16, 17; illegal ticket sales, 61; Internet, 179, 181, 200; interstate transportation of materials, 6, 24–25, 26, 149; multi-state, 149; state, 11, 146–49; three waves of, 146–47; transition to professional lottery corporations, 18 See also specific states lotto games, 148 Louisiana: casino license corruption scan- Free ebooks ==> www.Ebook777.com 278 inde x dals, 187; legality of gambling, 21–22; riverboat casinos, 158 Louisiana lottery: complaints about, 149; endurance of, 146; second wave of gaming legislation, 13–14; stifling of, 6, 24–25, 26, 90 Louisville, federal raid of, 112 Louisville Grays, 30 low dens, 19–20, 23 Lucia v United States (1973), 137 Mack (bookmaker), 126 mafia, 72, 73–74, 78 See also organized crime Maine lottery, 147 Major League Baseball, 170, 189, 201 Malone, George, 63 Mandalay Bay, 161–62 Market Revolution, 6, 18 Marsh, Richard, 97–98 Martin, Bob, 122 Maryland: betting on horses, 28; interstate commerce clause, 88; lottery, 147; race gambling, 90; slot machines, 27, 61 Mashantucket Pequots, 167 Massachusetts: colonial antigambling law, 16; lottery, 18, 147, 148 Massachusetts Bay Colony, 16 mayors’ concern about gambling, 53–55 McBride, Arthur, 41, 42 McBride, Edward, 41, 42 McCain, John, 174 McCarthy, Joseph, 73, 74–75, 81, 82 McCarthy Committee, 81–82 McClellan, John, 74, 105, 131 McClellan Committee See Senate Select Committee on Improper Activities in the Labor or Management Field McFarland, Ernest, 65, 67–68, 69, 71, 74 McFarland Committee, 65–69, 71, 87, 90 McGrath, Howard: and American Municipal Association, 54; Attorney General’s Conference on Organized Crime, 56, 57–58, 141; Ban on Gaming Data bill, 64–67, 68, 71; and Edwin Johnson, 70; and organized crime, 87; slot machine bill, 61, 62, 63 McGrath, John, 58, 60, 68 McNeil, Charles, 120, 121 media, 28, 91–92, 121, 234n47 Mega Millions, 149 mgm Grand (Detroit), 160 mgm Mirage, 185, 189–90, 196–97, 214, 217 Michigan race wagering, 26 Miller, Herbert, 103, 104 Minnesota, suit against gambling operators, 201 Mirage Resort, Hotel, and Casino, 161, 162 Mississippi: betting illegal in 1857, 23; betting on horses, 12–13; casinos, 157–59; Clan of the Mystic Confederation, 19–20; riverboat casinos, 155 Missouri: race wire service, 41; suit against Coeur d’Alene Indians, 200; suit against Interactive Gaming and Communications Corporation, 200 Mohegan Sun Casino, 167 Montana: punchboards, 27; slot machines, 27; sports betting, 172 moral/religious arguments against gambling, 129, 134, 188–89, 220, 221 Morrison, deLesseps, 48, 54–55, 56, 58, 60, 68 Mother’s Day bill, 87–88 Mountaineer Park, 145 multi-state lotteries, 149 Multi-State Lottery Association, 149 Murrell, John, 19–20 Nader, Ralph, 188–89 Narcotics Control Act (1956), 74 National Association of Attorneys General, 56, 183 National Basketball Association, 173, 201, 203 National Football League, 9, 170, 172, 189, 201–3 National Hockey League, 201, 203 National Indian Gaming Commission, 166 National League (baseball), 30 Nationwide News Service, 40, 41 Native Americans: bingo, 164–65, 167; California gaming, 165–66; compact with California, 221; Connecticut gaming, 167; Florida gaming, 164–65; gambling, 15; gaming as public policy, 164–68; social and economic conditions, 162–63, 168 ncaa (National Collegiate Athletic Association), 174–75 Nevada: anti-betting bill (1954), 92; Assembly Bill 578, 197–98; betting on horses, 12; card and dice gambling, 23; casino investigation, 110–11; casinos, 12, 26, 151–53; college sports betting, 202; decriminalization of games, 26; Gaming Control Board, 75, 110, 111, 197; Internet casino regulation, 197–98; legal framework for Internet gaming, 217; Progressive Era, 25; www.Ebook777.com inde x race wire service, 41; slot machines, 61, 62–63; sports betting, 169, 171, 173–74, 175; state gaming revenues, 152; and Wagering Tax Act, 73; wide-open gaming, 150–51 New Hampshire: lottery, 14, 146, 147; race wagering, 26 New Jersey: casino referenda, 153; casino regulation, 194–95; lottery, 147, 148; study commission on Internet gambling, 198; suit against Internet casinos, 200–201 New Jersey Gambling Study Commission, 220 New Mexico: lottery, 148; race wagering, 26; wide-open gaming, 150 New Orleans: casinos, 159–60; gambling houses, 21–22; interstate gambling ring, 102–3, 107; layoff bets, 103; lottery, 24 Newport (Ky.): gambling crackdown, 107; illegal casinos, 99; layoff bets, 103 Newton, Quigg, 58, 60 New York (city): betting on horses, 12; bookmakers, 127–28; federal raid, 112; gambling commission, 23; gambling houses, 21; gambling in 1800s, 23; illegal gambling, 138, 145; layoff bets, 103; organized crime, 130–31; sports betting, 127 New York (state): Ives Pool Bill, 28; lottery, 147; off-track betting (otb), 1, 2, 143–44, 145–46; and World Interactive Gaming, 200; and World Sports Exchange, 202 New York City Off-Track Betting Corporation, 143, 170 New York Police Department, 138, 145–46 New York Racing Association, 178–79, 187 New York Times, 121 Nixon, Jeremiah W (Jay), 200, 201 Nixon, Richard, 131 North Carolina race wagering, 26 North Dakota professional gambling, 183 numbers operations, 30–31 O’Brien, William, 68, 71 odds and handicapping, 119, 120–23, 128 off-track betting (otb): betting on horses, 143–44; bookmakers, 66; Continental Press Service, 66; effects of, 145–46; and Howard McGrath, 66; New York, 1, 2, 143–44, 145–46 See also Capital otb Ohio: lottery, 147; race wagering, 26 Olsen, Ed, 110, 111 online gambling See Internet gambling Ontario (Canada) casinos, 160 279 Oregon: race wagering, 26; sports betting, 173 organized crime: betting on horses, 124; and bookmakers, 123, 128–29; Chicago, 130– 31; gambling, 123, 130–31, 220–21; illegal betting, 123, 130–31; New York City, 130–31; Robert Kennedy’s investigation of, 77–81, 84–86, 94–95, 106–7; sports betting, 128–29 Organized Crime Control Act (1970), 130 See also rico (Racketeer Influenced and Corrupt Organizations Act) (1970) otb See off-track betting (otb) Pacific Stock Exchange, 179, 205, 206 pari-mutuel wagering: after World War II, 46–47, 143; on horses, 28; Illinois, 26, 39; legalization, 26, 39, 58; suggestion to ban, 68; and technological advances, 34–35 See also betting on horses Parsons, Reuben, 22–23 pathological gambling, 181–82, 220 Payne, John, 39 Payne Telegraph Service, 38, 39 Pennsylvania: federal agents enforce gaming statutes, 106–7; interstate commerce clause, 88; lottery, 147 Pesce, Teresa, 204–5, 208–9 Peterson, Virgil, 41, 42, 48–50, 51, 52 See also Chicago Crime Commission Pick Lotto, 148 Pittsburgh, federal raid of, 112 plants, gambling in, 31 point shaving, 125–26 point-spread betting, 120–21, 171 See also odds and handicapping police and bookmakers, 25, 124–25, 135–36, 137–38 pool cards: baseball, 30; football, 30, 119 poolrooms, 28, 34, 36 pornography, 177, 188, 190, 191 Powerball, 149, 247n30 Practical Gambling Investigation Techniques (Kinnee), 135, 136, 137 President’s Commission on Law Enforcement and Administration of Justice, 129–30, 131 professional gamblers: and antigamblers, 5; emergence of, 6, 18, 19–20; penalties against, 23; resentment of, 22; rise of, 21; riverboat gambling, 19–20, 33 professional lottery corporations, 18 professional sports: basketball, 173, 201, 203; Free ebooks ==> www.Ebook777.com 280 inde x football, 9, 170, 172, 189, 201–3; league trademarks, 202–3 Profile of the American Gambler (Harrah’s Entertainment), 221 Progressive Era: betting on horses, 27–28, 89; Colorado, 156; issues, 6, 25–26; moralism, 129, 134; regulation of industry and commerce, 195 prosecutors, and gambling offenses, 136–37 public-interest gaming, 6–7, 11, 134–35, 149–50, 220–21 punchboards, 27, 59, 72 Puzo, Mario, 115 racetrack slot machines, 144–45 race wagering See pari-mutuel wagering race wire service: and bookmakers, 28–29; emergence of, 37–40; end of, 117; fbi investigation, 54–55; use of technology, 8, 33–34; war over, 6–7, 41–44 See also Wire Act (1961) racinos, 144–45 Ragen, James, 41–42, 235n85 railroads, 33 R and H Publishing Company, 41 Ratterman, George, 107, 242n78 Real Casino, 204 Reardon, James, 125 religious/moral arguments against gambling, 129, 134, 188–89, 220, 221 remote wagering, 143–44 Republican Policy Committee, 182, 186 Rhode Island gaming revenues, 187 Richardson, William, 89 rico (Racketeer Influenced and Corrupt Organizations Act) (1970), 4, 117, 132–33, 202 riverboat casinos, 154–55, 158–59 riverboat gamblers, 19–20, 32–33 Riverside County (Calif.), 166 Riviera (Bergen County, N.J.), 51 Riviera (Las Vegas), 162 Rogers, William Pierce, 93 Roosevelt, Theodore, 25 roulette wheels, 72, 108–9, 134 Roxborough, Michael (Roxy), 122–23 Rozelle, Pete, 170, 201–2 Russell, Harry, 43 S 1653 bill, 105 S 1656 bill, 105 S 1657 bill, 103, 105 S 3357 bill, 60–65 S 3358 bill, 60–61, 64, 65–69, 90 Sahara (Las Vegas), 152, 162 Samuels, Howard, 170 S & G bookmaking syndicate, 43 San Francisco card and dice gambling, 23 scandals: Black Sox, 30; casino license corruption, 187; sports betting, 125–26 Schillinger, Steve, 9, 179, 180, 202, 204 Schwarzenegger, Arnold, 221 sdb Global, 204 Second Great Awakening, 18–19 Section 1084 See Wire Act (1961) Securities and Exchange Commission, 183 Seminole gaming, 164–65 Seminole Tribe of Florida v Butterworth, 164–65 Senate Commerce Committee, 61, 70, 174 Senate Interstate and Foreign Commerce Committee, 90 Senate Investigations Committee, 81–82 Senate Judiciary Committee, 97–98, 108 Senate Judiciary Constitutional Rights Subcommittee, 110 Senate Select Committee on Improper Activities in the Labor or Management Field: labor racketeering investigations, 3, 82–83, 87, 94; labor union corruption, 74–75, 77–78; Valachi hearings, 106, 109; Wire Act amendment, 107–8 Seton Hall University, 125 Siegel, Benjamin, 41, 42, 51, 55 Silberling, Edward, 86, 103 Sims, Thetus, 88, 90 simulcasting of horse races, 144 slot machines: Chicago, 59; Deadwood (S.D.), 157; development of, 35–36; estimates after World War II, 48; federal excise tax on, 64; legalization, 26–27; Maryland, 61; Nevada, 61, 62–63; operated by federal government, 142; at racetracks, 144–45 smokestacking, 54 Snyder, Jimmy “the Greek,” 121, 122 social gambling excluded from Wire Act, 80, 100, 101–2 Social Security number applicants, fingerprinting of, 59, 61 “Something for Nothing” (Gautreaux), 223–24 South Dakota limited gaming, 156–57 Special Committee to Investigate Organized Crime in Interstate Commerce See Kefauver Committee sporting events and bribery, 108 Sports Action, 173 www.Ebook777.com inde x sports betting, 169–75; bookmakers, 119, 120–23, 169, 171, 172; Delaware, 172–74; England, 170; France, 170; history, 29–30; and media, 234n47; Montana, 172; Nevada, 169, 171, 173–74, 175; New York City, 127; odds and handicapping, 119, 120–23; Oregon, 173; and organized crime, 128–29; scandals, 125–26; and television, 125, 126–27, 174; women in, 127 See also specific sports Sports International, 179, 200 sports leagues, 9, 170, 173, 174–75, 189, 201–2 See also specific leagues Stardust, 151, 162, 169 state attorneys general, 200–201 state gaming, 6–7, 11, 134–35, 149–50, 220–21 state lotteries, 11, 146–49 See also specific states State of California v The Cabazon Band of Mission Indians, 165–66, 212 Station Casinos, 185, 192 steamboat races, 33 Straus, Harry, 35 Supreme Court (U.S.), 109, 165–66, 190, 211–12 Sutton, Pat, 62 Syndicate, 41, 42–43, 44, 50–51, 236n13 See also Capone, Al; organized crime syndicates: crime, 51–53 syndicates, gaming: history, 23, 25, 48; and slot machines, 35, 48, 236n8 See also specific syndicates by name tax: on bookmakers, 137, 169; on slot machines, 64 Teamsters Union, 75, 83, 84 See also Hoffa, James R (Jimmy) technical innovations, 32–37 See also Internet; race wire service telegraph, 33–34, 88–89, 91, 101, 103–4 See also race wire service telephone companies, 91, 98, 101, 103–4 television, and sports betting, 125, 126–27, 174 Tennes, Mont, 38–40, 41, 118 Tennessee, legality of casinos, 12 Texas: lottery, 148; race wagering, 26 three-waves model (gambling legalization), 13–14, 232n2 three waves of lottery, 146–47 Time magazine, 121 tipsters, prosecuted under Wire Act, 138 Title 18 United States Code Section 1084 See Wire Act (1961) Tobey, Charles, 70, 91 See also Kefauver Committee 281 totalisator, 35, 119 Touchdown/Touchdown II, 172 Trans-American Publishing and News Service, 41–43, 44 Trauman, Jeffrey, 183 Treasury Department, 56–60, 73, 130 tribal governments See Native Americans Tropicana casino resort, 75–76 Truman, Harry S., 46, 56–57, 63 Tunica County (Miss.), 158 turf clubs, 169 Union Plaza, 169 United Press International, 121 United States, Antigua’s suit against, 10, 215–17 United States Independent Telephone Association, 97–98 United States v Cohen: appeal of conviction, 210–12; conviction of Cohen, 209–10; defendant’s case, 205–8, 209; jury instructions, 1–2; legacy, 213–15; prosecution’s case, 204–5, 208; sentencing, 210; and Wire Act, 1–2, 9–10, 205, 206, 209– 10, 211, 214–15 See also Wire Act (1961) University of Kentucky, 125 University of Pennsylvania, 29, 120, 243n6 Unlawful Internet Gambling Funding Prohibition Act, 192 U.S Attorney General, 80 U.S Court of Appeals, Second Circuit, 210–12 U.S Trade Representative, 216 Vacco, Dennis, 182–83, 200 Valachi, Joseph, 109, 236n13 Valachi hearings, 106, 109 Vicksburg (Miss.), 20, 158 video lottery terminals, 144–45 vigorish, 124 Virginia colonial gambling, 15–16 Virginia Company, 15–16 Volstead Act, 67, 213–14 Wagering Tax Act (1952), 73 Ware, Haden, 204 Washington (D.C.) gambling houses, 21 Washington, George, 17 Washington (state): lottery, 148; race wagering, 26 wave theory, 13–14, 232n2 wealth, redistribution of, 149–50 Western Union Telegraph Company, 37–38, 72, 91, 104, 118, 203 Free ebooks ==> www.Ebook777.com 282 inde x West Virginia: race wagering, 26; video lottery terminals, 145 Wheeling Downs, 145 White, Byron, 166 wide-open gaming, 150–51 Winner’s Way, 204 Wire Act (1961): amendment recommended, 108; enforcement, 4–5; hearings, 97–102, 103–4; historical background, 13; illegal bookmaking, 134, 138; Internet gambling, 183, 203–4, 216; oddsmakers, 122; passage, 3–4, 104–5, 193; purpose, 7, 8, 139; and Robert Kennedy, 2–5, 7, 95–105, 117, 129; safe harbor provision, 211; social gambling excluded, 80, 100, 101–2; and technical innovations, 108; tipsters prosecuted under, 138; and United States v Cohen, 1–2, 9–10, 205, 206, 209–10, 211, 214–15; virtual tote board, 178; and Western Union, 104, 118 See also race wire service; United States v Cohen wire communication facility, defined, wiretapping law, 105, 109–10, 113–14 Wisconsin: lottery, 149; suit against Coeur d’Alene Indians, 179, 200; suit against gambling operators, 201 wolf-traps, 20 women and sports betting, 127 World Interactive Gaming Corporation, 183, 184, 200 World Sports Exchange (wse): Antigua location, 179, 201, 205, 206, 209; Cohen resigned as president of, 210; conspiracy charges, 9; fbi investigation, 203–4, 211; founding of, 1, 9, 179–80; New Yorkers’ bets, 202; professional sports league trademark use, 202–3 See also Cohen, Jay; United States v Cohen World Trade Organization (wto), 10, 215–17 wse See World Sports Exchange (wse) Wynn, Steve, 161, 162, 167 Yale University, 29, 120, 243n6 www.Ebook777.com .. .cutting the wire Free ebooks ==> www.Ebook777.com the gambling studies series www.Ebook777.com CUTTING THE WIRE GAMBLING PROHIBITION AND THE INTERNET DAVID G SCHWARTZ University... Vices and Illicit Diversions,” sums up the history of legal and illegal American gaming, describes the long connections between gaming and technology, and explains the development of the race wire. .. existing schemes of state-sponsored betting Legalized gaming shrank nearly to extinction Still, Americans continued to gamble, and many of them began to believe that legalizing and taxing gaming might