How The Mob Grew Sports Betting

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hacheman@therx.com
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How the mob grew sports betting

Chad Millman
ESPN INSIDER
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There at the creation.
That's one of my favorite phrases. It means you saw a flash of brilliance or caught a truly original moment or, if you spoke up, contributed to an idea or movement that mattered. It means that you were a witness to history. Think about all the imaginary light bulbs it would have been cool to see turn on (like, of course, the invention of the light bulb, whether you think it was Thomas Edison or Joseph Swan). I would like to have been in the brainstorming session for the Declaration of Independence. I would like to have been in Naismith's gym class. I would like to have been in the seat next to J.K. Rowling when she first typed the words "Harry Potter" and realized, even if no one else did yet, that her days of struggling were over. Thanks to Aaron Sorkin and David Fincher, I was there at the creation when Mark Zuckerberg invented Facebook. And it was cool, even if it was just a movie (and one that was robbed of an Oscar).

Those moments are rarely big, I would imagine. The weight of what's to come doesn't usually announce itself in incandescence. Creation myths only make it seem that way.

<offer>Beyond the big ones, I have dozens of smaller, more niche moments that I would have loved to have seen up close. And, as a lover of all things gambling, Vegas, the mob and legal dramas, that list includes the 1950 Kefauver hearings, which essentially are when the mob went public. That is why I'm anxious to hit the newly opened Mob Museum in Las Vegas. Built in the old federal courthouse that hosted the hearings, this was a labor of love for Sin City's former mayor Oscar Goldman, a legendary mob lawyer who tried his first case in the courthouse in the late-1960s.</offer>
<offer></offer>
"It was 1967 on St. Valentine's Day," he told me over the phone Wednesday afternoon, a week after the museum opened its doors. "I represented the stepbrother of a fella I came to know as one of the leading mobsters from the Northeast. I dressed my guy in khakis and a rep tie and blue blazer. I got lucky and won, I think the jury felt sorry for me, and from then on I was getting phone calls from associates of this particular guy."

Last year I visited Vegas for the NCAA tournament and spent the morning with the mayor in his office, which overlooked the work on the museum. His 12-year run as the boss was coming to an end. He had artifacts ready to go into the museum lined up along his walls, thanks to donations from the FBI. But my interest was truly piqued when he mentioned the Kefauver hearings. I hadn't realized the old federal building was where some of them had been held.

In 1949, dozens of newspapers and magazines around the country reported on the widespread influence of the mob on local business and statewide elections. Overwhelmed, local police pleaded with the federal government for national laws that had more teeth. In January 1950, Tennessee senator Estes Kefauver responded by proposing hearings on organized crime.
The hearings were held in 14 cities, including Las Vegas, over several months. And they were all televised. This was the beginning of the end for so much of the American underbelly, the first time American-made mobsters were paraded on TV, their influence revealed, their scratchy, East Coast-accented voices heard. They jumped from the pages of Damon Runyon stories and onto American TV screens at the exact moment that that newfangled technology was beginning to fascinate us. With the curtain pulled back, literally, they were no longer protected by fiction. Frank Costello, who ran New York's crime syndicate, refused to appear before the committee unless he wouldn't be shown on TV. During his testimony, cameras focused on his hands, which fiddled with his watch and cuff links so incessantly that people watching referred to it as "the hand ballet."

At times, nearly 100 percent of the televisions in the United States were tuned in. And what they learned, littered among the intricate details of the mob's influence, was how prevalent sports betting was to its operations. Cops in New Orleans supplemented their $186 a week salary by looking the other way when bookmakers did business. A Chicago police captain admitted he hadn't raided a bookie joint in more than a decade and that he had become rich betting on sports, elections and the stock market. When Kefauver finally released his report after a 17-month investigation, he wrote: "Big-time bookmaking operations, largely monopolized by big mobsters, cannot be carried on without the rapid transmission of racing information and information about other sporting events." This note laid the groundwork for the Interstate Wire Act of 1961, which essentially made using the phone to take bets illegal.

"The courtroom is at the centerpiece of the museum," Goodman told me. "It's like a hologram. And we have footage from the hearings. Costello being questioned. Virginia Hill, who had been the girlfriend to so many mobsters, was questioned. You feel like you are entering a place that was involved in a very historic event."
Almost as if you were there at the creation.
 

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Old Lady Luck slated to reopen next year as Downtown Grand


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Steve Marcus
A view of the Lady Luck hotel-casino in downtown Las Vegas Monday, Aug. 17, 2009.

By <cite>Cy Ryan</cite>
Wednesday, Feb. 8, 2012 | 2:09 p.m.



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CARSON CITY — The 650-room Lady Luck hotel-casino in downtown Las Vegas is completely gutted now but with renovations, it should be ready to open in April 2013. It will be renamed the Downtown Grand.
The Nevada Gaming Control Board has recommended approval for Seth Matthew Schorr and partner Jeffrey A. Fine to lease the hotel with 650 slot machines, 32 table games and a race and sports book.
Schorr said the renovation will cost “north of $100 million.” The work will retain the bridge between the property’s two towers, but it will be encased in glass and provide a view of the Mob Museum.
In the meantime, the partners gained approval from the board for 16 slot machines at the “Mob Bar” in downtown Las Vegas.
It has the décor of a gangster bar in the 1920s. Schorr said it’s the type of a speakeasy that a mobster might have frequented.
The board conditioned the license on the partners submitting financial documents 180 days before the Downtown Grand opens.
The state Gaming Commission meets Feb. 23 to take final action on the application.
 

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Back in the day, football was bet like baseball is today, with a money line. It wasn't until a guy in Minnesota developed the point spread that it became used nationally. I remember when I was a kid, my father took me to Yankee Stadium and I saw a sign in right field that said, "NO GAMBLING ALLOWED". When I ask my father what it meant, he gave me some sort of explanation like it's when one person thinks one team will win against the other team.
 

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Great read... gambling is generally considered just another form of entertainment across the world and socially accepted if not outright supported. The US is still hanging onto there prohibition even though they are incapable of enforcing it in any major way and appear to be quite silly not to mention numerous international lawsuits that they keep losing. Considering their ongoing need for new and sigificant capital sources it most likely will be completely legalized and regulated at the Federal level soon enough so they can tax the crap out of... am I right or what?
 

FZA

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that was a cool history lesson. doesnt surprise me dirty cops had a hand in things
 

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