Hostname: page-component-cd9895bd7-7cvxr Total loading time: 0 Render date: 2024-12-26T05:57:06.041Z Has data issue: false hasContentIssue false

“Put the Gangsters Out of Business”: Gambling Legalization and the War on Organized Crime

Published online by Cambridge University Press:  11 September 2019

Jonathan D. Cohen*
Affiliation:
University of Virginia

Abstract:

From the 1950s through the 1970s, American policymakers engaged in an extensive campaign against illegal gambling in an effort to turn the tide in the government’s crusade against organized crime. At the grassroots, however, voters endorsed a different form of state expansion to beat back the mob menace. Between 1963 and 1977, fourteen northeastern and Rust Belt states enacted the first government-run lotteries in the twentieth-century United States on the belief that legalized gambling would undercut the mob’s gambling profits. While gambling opponents pointed to Las Vegas as proof that organized crime would flourish following legalization, supporters argued that illegal gambling was already pervasive, so the state may as well profit from this irrepressible activity. The history of gambling legalization challenges narratives on the popularity of law-and-order politics and offers a new perspective on crime policy in the post–World War II period.

Type
Article
Copyright
Copyright © Donald Critchlow and Cambridge University Press 2019 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

I would like to thank Joey Thompson and two anonymous reviewers for their comments on this article. Thanks also to Su Kim Chung, Daniel Gastfriend, Larry Gragg, and David Schwartz for their advice at various stages of the writing process. This research was assisted by a Mellon/ACLS Dissertation Completion Fellowship from the American Council of Learned Societies as well as a grant from the Rockefeller Archive Center.

References

NOTES

1. Nevada Tax Commission v. Hicks 310 P.2d 852 (1957).

2. Balogh, Brian, A Government Out of Sight: The Mystery of National Authority in Nineteenth-Century America (New York, 2009);CrossRefGoogle Scholar McGirr, Lisa, The War on Alcohol: Prohibition and the Rise of the American State (New York, 2016);Google Scholar Kennedy, David, Over Here: The First World War and American Society (Oxford, 1980);Google Scholar Sparrow, James, Warfare State: World War II Americans and the Age of Big Government (Oxford, 2011);Google Scholar Hinton, Elizabeth, From the War on Poverty to the War on Crime: The Making of Mass Incarceration in America (Cambridge, Mass., 2016).CrossRefGoogle Scholar

3. Journal Herald (Dayton), “Inquiring Reporter,” 20 July 1970, 4.

4. For example: Winn, Beth Moncure and Whicker, Marcia Lynn, “Indicators of State Lottery Adoptions,” Policy Studies Journal 18, no. 2 (1989–1990): 293304;CrossRefGoogle Scholar Berry, Frances Stokes and Berry, William D.. “State Lottery Adoptions as Policy Innovations: An Event History Analysis,” American Political Science Review 84, no. 2 (1990): 395415;CrossRefGoogle Scholar Jackson, John D., Saurman, David S., and Shughart II, William F., “Instant Winners: Legal Change in Transition and the Diffusion of State Lotteries,” Public Choice 80, no. 3/4 (1994): 245–63;CrossRefGoogle Scholar Jensen, Jason L., “Policy Diffusion through Institutional Legitimation: State Lotteries,” Journal of Public Administration Research and Theory 13, no. 4 (2003): 521–41;CrossRefGoogle Scholar Baybeck, Brady, Berry, William D., and Siegel, David A., “A Strategic Theory of Policy Diffusion via Intergovernmental Competition,” Journal of Politics 73, no. 1 (2011): 232–47.CrossRefGoogle Scholar

5. Life, “‘It is Positively the Most Wonderful Thing I Ever Saw,’” 2 April 1951, 22.

6. Estes Kefauver, Crime in America (New York, 1968 [1951]), 14.

7. Special Committee to Investigate Organized Crime in Interstate Commerce, Third Interim Report (Washington, D.C., 1951), 2.

8. Schwartz, David G.. Suburban Xanadu: The Casino Resort on the Las Vegas Strip and Beyond (New York, 2003), 64, 77.Google Scholar

9. Statement of Robert Kennedy before Subcommittee No. 5, House of Representatives Committee on the Judiciary, 17 May 1961, https://www.justice.gov/sites/default/files/ag/legacy/2011/01/20/05-17-1961.pdf.

10. Congressional Quarterly Almanac, “Congress Enacts Five Anti-Crime Bills” (Washington, D.C., 1961), 381–85.

11. President’s Commission on Law Enforcement and Administration of Justice, The Challenge of Crime in a Free Society (Washington, D.C., 1967), 209, 302.

12. Johnson, Lyndon B., “Special Message to the Congress on Law Enforcement and the Administration of Justice,” 8 March 1965, American Presidency Project, https://www.presidency.ucsb.edu/node/242223.Google Scholar

13. Testimony of Vinson, Fredrick M. Jr., The Federal Effort Against Organized Crime: Hearings Before a Subcommittee of the Committee on Government Operations, House of Representatives, 90th Cong., 1st sess., pt. I (Washington, D.C., 1967), 11.Google Scholar

14. Nixon, Richard, “Special Message to the Congress on a Program To Combat Organized Crime in America,” Public Papers of the Presidents of the United States: Richard Nixon, 1969 (Washington, D.C., 1971), 165.Google Scholar

15. Abadinsky, Howard, Organized Crime (Chicago, 1994 [1980]), 453.Google Scholar

16. New York Times, “Nixon Signs Bill to Combat Crime,” 16 October 1970, 18.

17. Governor’s Committee on Gambling, Final Report (n.p., n.d.), Box A-256, John Dempsey Gubernatorial Papers, Connecticut State Archives, Hartford (hereafter “CSA”), 14, 18.

18. Dickinson, W. B. Jr., “Betting: Legal and Illegal,” Editorial Research Reports l, no. 1 (1960): 384–87;Google Scholar Frederick B. Lacey, Recommendations to the 1970 Session of the New Jersey Legislature Concerning Legislation which might be Enacted to Curb the Power and Influence of Organized Crime in New Jersey, 20 January 1970, found in the records of Monmouth University Library, Long Branch, 20–25.

19. Heather Ann Thompson, “Why Mass Incarceration Matters,” Journal of American History 97, no. 3 (2010): 706; Hinton, From the War on Poverty, 204.

20. Gallup, George, The Gallup Poll: Public Opinion, 1935–1971 (New York, 1972), 1820, 1876.Google Scholar

21. Emphasis in the original; Daniel Dinsmore Jr., letter to Thomas Meskill, 29 January 1970, Folder “Tax Form Letter Sent,” Box A–690, Thomas Meskill Gubernatorial Papers, CSA.

22. Vaz, Matthew, “‘We Intend to Run It’: Racial Politics, Illegal Gambling, and the Rise of Government Lotteries in the United States, 1960–1985,” Journal of American History 101, no. 1 (2014): 7196.CrossRefGoogle Scholar

23. President’s Commission on Law Enforcement, Challenge of Crime in a Free Society, 189; Statement of Robert Kennedy before House Committee on the Judiciary, 13. The $50 billion figure—repeated by Nixon in his 1970 organized crime address to Congress—appears to derive from the 1961 testimony of John Scarne, a self-proclaimed “gambling expert,” before the Senate Committee on Government Operations; Scarne testified that, based on his research, $16.50 was bet illegally for every dollar wagered legally at the racetrack; with $3.5 billion in legal horserace betting in 1960, he placed the total handle at the unfeasible sum of $50 billion; Testimony of John Scarne, Hearings Before the Permanent Subcommittee on Investigation of the Committee on Government Operations, United States Senate, 87th Cong., 1st sess., pt. I (Washington, D.C., 1961), 83.

24. Mae Semaskenich to William T. Cahill, n.d. (November or December 1970), folder “Treasury-Lottery 1970,” Box 25, Subject Files 1970–74, William Cahill Gubernatorial Papers, New Jersey State Archives, Trenton (hereafter “NJSA”).

25. Cornelius Gallagher to Harry Sears, 31 December 1969, Folder 89, Box 31, Cornelius Gallagher Papers, Carl Albert Center, Norman, Okla.; Gallagher was intimately familiar with the mob’s gambling ventures: in 1968, Life magazine revealed that, since 1960, the congressman had performed political favors for Mafia captain Joe Zicarelli (Russell Sacket, Sandy Smith, and William Lambert, “The Congressman and the Hoodlum,” Life, 9 August 1968, 20–26).

26. Schwartz, David G., “No End in Sight: How the United States Became a Gambling Nation, 1950–2000,” in All In: The Spread of Gambling in Twentieth-Century United States , ed. Cohen, Jonathan D. and Schwartz, David G. (Reno, 2018), 152–53.Google Scholar

27. Floyd J. Fowler Jr., Thomas W. Mangione, and Frederick E. Pratter, “Gambling Law Enforcement in Major American Cities” (Washington, D.C., 1978), 50.

28. James A. Graham to Nelson Rockefeller, 9 November 1966, Reel 34, Series 37.2, Second Administration, Office Subject Files, Nelson Rockefeller Gubernatorial Records, Rockefeller Archive Center, Sleepy Hollow, NY (hereafter “RAC”).

29. Josephine Jungermann to Nelson Rockefeller, 30 July 1962, Reel 35, Series 37.1, First Administration, Office Subject Files, Nelson Rockefeller Gubernatorial Records, RAC.

30. Elizabeth J. Morgan to Governor Timothy Meskill, 26 January 1971, Folder “Tax Form Letter Sent,” Box A-690, Timothy Meskill Gubernatorial Papers, CSA.

31. Stevenson, Dana, “Public Confused But Leans to ‘Yes’ In State Lottery Vote,” Trenton Times, 5 October 1969, 3.Google Scholar

32. David Nibert, Hitting the Lottery Jackpot: Government and the Taxing of Dreams (New York, 2000); Henricks, Kasey and Embrick, David G., State Looteries: Historical Continuity, Rearticulations of Racism, and American Taxation (New York, 2017).Google Scholar

33. Bennington Banner (Bennington, Ver.), “Gambling’s Crooked Fringes,” 25 August 1961, 4.

34. Fowler Jr., Mangione, and Pratter, “Gambling Law Enforcement in Major American Cities,” 76–77.

35. The union officials testified before the Commission on the Review of the National Policy Toward Gambling. However, the exact transcripts of these hearings were not recorded. All quotes from these hearings are drawn from testimony summaries; Testimony of Kenneth T. Lyons et al., 10 April 1975, Commission on the Review of the National Policy Toward Gambling, Gambling in America Appendix 3: Summaries of Commission Hearings (Washington, D.C., 1976), 172.

36. Emphasis in the original; Fowler Jr., Mangione, and Pratter, “Gambling Law Enforcement in Major American Cities,” 67.

37. William C. Zimmerman, “Would Repeal Antigambling Laws,” letter to Chicago Tribune, 29 February 1964, 12.

38. Public Hearing on A.C.R. 2 (Off-Track betting) and A.C.R. 4 (State lotteries), Judiciary Committee, New Jersey State Assembly, testimony of Thomas Bierman (n.p., 1964), New Jersey State Library, Trenton, 59a.

39. Nobile, Philip, “Legalized Gambling worth $4B a Year—Samuels,” Star Gazette Sun (Elmira, NY), 23 July 1972, 3.Google Scholar

40. Emphasis in the original; Parker Carey to Thomas Meskill, 15 January 1971, Folder “Lottery,” Box A-844, Special Revenue Commission Subject Files, Thomas Meskill Gubernatorial Papers, CSA.

41. King, Rufus, Gambling and Organized Crime (Washington, D.C., 1969), 166–67.Google Scholar

42. Woodiwiss, Michael, Organized Crime and American Power: A History (Toronto, 2001), 263.Google Scholar As historian Lee Bernstein notes, the rhetoric about organized crime in the 1950s paralleled McCarthyite language about the threat of domestic communist subversion: Lee Bernstien, The Greatest Menace: Organized Crime in Cold War America (Amherst, 2002).

43. United States Senate, Hearings of Senate Committee to Investigate Organized Crimes in Interstate Commerce, Vol. 10: Nevada–California (Washington, D.C., 1951), 88; Special Committee to Investigate Organized Crime in Interstate Commerce, The Kefauver Committee Report on Organized Crime (New York, n.d.), 75.Google Scholar

44. Gragg, Larry, Bright Light City: Las Vegas in Popular Culture (Lawrence, Kans., 2013), 5996.Google Scholar

45. Ed Reid and Ovid Demaris, The Green Felt Jungle (New York, 2010 [1963]), front matter.

46. Ibid., 229.

47. McMullen, Jay, “Suckers Pour into Las Vegas Jungle,” Press and Sun Bulletin (Binghamton), 12 January 1964, 15B.Google Scholar

48. New York Times Book Review, “The Year’s Best Sellers,” 10 January 1965, 6.

49. Wallace Turner, Gamblers’ Money: The New Force in American Life (Cambridge, 1965), 140, 283.

50. Letter to Francis Sargent, 16 September 1971, Folder “Lottery (Robo Reply),” Box 67, Governors Council Records, G01/366X, Massachusetts State Archives, Boston (by law, all public correspondence held by the Massachusetts State Archives is anonymized, so the letter-writer’s name is not available).

51. Federal Bureau of Investigation, Crime in the United States: Uniform Crime Reports—1975 (Washington, DC, 1975), 74; Associated Press, “Las Vegas Crime Rate Highest in U.S., FBI Reports,” Los Angeles Times, 8 September 1976, 3.

52. Kurtz, Gordon F., “Nevada Proves Evil of Legal Gambling,” letter to Democrat and Chronicle (Rochester), 23 December 1964, 6.Google Scholar

53. Reid and Demaris, The Green Felt Jungle, 215.

54. President’s Commission on Law Enforcement, Challenge of Crime in a Free Society, 192.

55. On the mob in Hudson County, see Deitche, Scott M., Garden State Gangland: The Rise of the Mob in New Jersey (Lanham, Md., 2018), 8187;Google Scholar “Public Questions, 1969,” Box 190, Department of State, Division of Elections, Election Returns, 1911–97, NJSA.

56. Commission on the Review of the National Policy Toward Gambling, Gambling in America, Appendix 3, 1065.

57. Stapleton, Charles, “Daily Lottery Challenging Crime,” Courier-News (Bridgewater, NJ), 24 November 1972,Google Scholar

58. Dufton, Emily, Grass Roots: The Rise and Fall of Marijuana in America (New York, 2017).Google Scholar