Illegal Gambling Rings: How They Operate and Why They Exist
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Gambling rings are popular in even high-risk jurisdictions. Even in countries that regulate activities such as sports betting, illegal gambling rings find a way to be. The business is usually run by multiple individuals.
Illegal gambling rings are high-risk and high reward operations. They are usually set up in jurisdictions where gambling is illegal. Criminals who run them generate millions over the years. The biggest gambling dens and rings usually are busted in places where it was illegal for decades. Ordinary people with a knack for gambling and the right connections may be tempted into running one. They have grown comfortable with the setup. Police have busted dozens of high profit-making operations in the past. Some of them have been successful. Others have not.
To run an illegal gambling ring, one needs to be a shot caller. Most rings operate by creating a group of trustees who manage the operations. The organization's HQ is not as important as long as it doesn't call attention to it. An illegal business cannot advertise openly and rely on marketing ploys. It needs a well-connected and well connected clientele to justify the risk. If you run a gambling business, you will bear the stiffest penalties. If police suspect someone trying to operate anillegal gambling den, they will turn a blind eye.
Illegal gambling rings are almost exclusively concerned with sports gambling. Some illegal poker rooms and underground casinos are also involved in illegal gambling, but they are less profitable. In China, sports betting is illegal, and authorities are actively pursuing culprits. In New York City, Molly Bloom set up illegal games of poker for celebrities. She was caught. The biggest amount of sports bets are placed in China. It is the most popular place for illegal sportsbetting.
There have been some exciting illegal gambling ring busts mostly in Asia. Several examples of illegal betting rings were able to generate huge revenue and went undetected for years.
Vietnam's police busted a $2.6 billion online gambling ring in May 2020. The ring was active from 2018 to 2020 and 16 people were arrested. There is a growing demand for gambling in Asia.
Gambling ring in Seoul was busted by police in 2017. It operated between 2011 and 2017 and made $25 million in its first 5-6 years. It accepted $12 million bets every day. The profits weren't too great, but they were still very high.
Frank Rosenthal was involved in illegal gambling rings. He was a shot-caller for organized crime. The FBI had a dossier on him, but he was never charged with any crime and he never admitted to being left-handed. He ran four casinos in Las Vegas without proper documentation. When he tried to obtain a legal permit, he got shot down. Before his death, Rosenthal wrote a book about illegal betting rings and their operations. It is called Illegal Gambling Rings: How They Operate and Why They Exist.
Some people choose to use illegal gambling rings instead of obtaining a license. Some people are bored or love the rush of gambling. Others are used to gambling privately or with sportsbooks. Some jurisdictions treat people playing poker as a criminal even if they are only playing. People who choose illegal betting are motivated by habit. They do not have to pay money on their winnings.
Gambling rings and match-fixing are connected. Fixers are constantly trying to get in touch with low-tier players from soccer through digital media. Some of the biggest busts of gambling rings in the United States were run by people who had a knack for organizing the business side of things. The fact remains that illegal gambling ring have a vested interest in finding a way to fix games and turn an even bigger profit.
Rosenthal ran an illegal gambling ring in the 1950s. Today's illegal rings are difficult to run and are run by people with the right connections and knowledge. They are also dangerous and they are prone to legal repercussions. Gambling is on its way to full legalization worldwide. In the United States, high stakes gambling across poker, sports and casino is already happening completely above board. The most experienced ring leaders are able to overcome these challenges and create a sustainable business.
Running a gambling ring is a felony.
Illegal gambling rings operate by creating a group of trustees who manage the operations and accept bets.
Anyone caught and convicted of running an illegal gambling ring can face anywhere from 1-10 years in jail.
