By Jackson Brainerd With state budgets still lagging pre-recession revenue levels, lawmakers hope to score a windfall by expanding legal gaming. Revenues from gambling offer an appealing alternative to the politically unpopular, increasingly undoable and invariably conflict-laden effort to hike taxes. But it represents a relatively small portion of most state budgets, somewhere between 2 and 2.
Nelson Rose of Whittier College. Somach has covered the World Sports Exchange saga sincewhen the online sportsbook's three co-owners were busted by Federal authorities in the U.
Hollywood has also shown an interest in the case--Somach has had meetings with several movie producers about developing a screenplay about the saga and making a feature film. A subscription to "Gaming Law Review and Economics" costs several hundred dollars a year, so its articles are not made available free online.
One co-founder had previously turned himself in, faced trial and gone to prison while the other co-founder had killed himself. The Internet hadn't been around very long when, inthree employees of the Pacific Exchange, a minor stock exchange based in San Francisco, decided to quit their jobs, move to the tiny Caribbean twin-island nation of Antigua and Barbuda and start the world's first online sportsbook--called World Sports Exchange--where people around the world could bet by computer on college and professional sporting events.
Schillinger also doubled as the Exchange's bookmaker, booking sports wagers on the San Francisco 49ers, San Francisco Giants, Golden State Warriors and other teams from Exchange employees. After one such employee had a particularly bad weekend betting on football with Schillinger and losing a lot of money to him, the employee told his parents what happened and asked them for a loan so he could pay his bookie.
Instead of a loan, the parents contacted Pacific Exchange officials and blew the whistle on Schillinger, who was promptly fired.
Schillinger figured he could continue booking sports bets on the nascent Internet, and convinced Cohen and Ware to follow him to a tropical foreign paradise where, they thought, they would be out of the reach of U.
John's, the country's capital city on the island of Antigua. Things started off slowly as both the company and the concept of wagering on sports online were largely unknown to the public, but after a year the company had thousands of customers around the world and was making millions of dollars.
Millions of dollars apparently weren't enough for the greedy co-founders. By the start ofCohen was doing dozens of media interviews to promote WSEX and in one, said the company was capable of making "billions with a b. The Feds thought otherwise. In the spring ofCohen, Schillinger, Ware and 18 other Americans who were involved in the operation of half a dozen Internet sportsbooks and casinos in foreign lands were charged by the U.
That law was enacted during the administration of President John F. Kennedy and Attorney General Robert F. Kennedy used it to go after one of organized crime's top money-making rackets, booking sports bets. The Internet in operated over telephone lines, so although some thought it was a stretch to apply the law in this case, the Feds didn't.
Those charged were dubbed the "Internet 21" by the media. Most of the "Internet 21" immediately returned to the U. Several "Internet 21" members, including Schillinger and Ware, remained abroad as fugitives from justice, continuing to run their lucrative online gambling businesses.
Only one of the "Internet 21" returned to the U. He would be found guilty after a long jury trial in Federal Court in Manhattan and would be sentenced to 18 months in a Federal prison in, of all places, Las Vegas, where sports betting is legal. After Cohen got out of prison, his probation stipulated he was not to be involved with WSEX any more.
A few years later, the trio at WSEX decided they weren't making enough money, so they decided to stop paying their winning customers.
What were those customers going to do, call the police and admit they were betting illegally over the 'Net? The customers couldn't do anything, as the online sports betting industry wasn't regulated by anyone with any authority.Casino Gambling as an Economic Development Strategy 1) Summary According to the casino gambling is experiencing rapid growth in the Unites States.
This . America's casino industry expanded rapidly in the s, spreading from Nevada and Atlantic City to mining towns, riverboats, race tracks and tribal lands, and moving from isolated resort settings to urban and suburban venues.
TURBOTVILLE — Fourth- and eighth-grade students in the Warrior Run School District are working together to build one another up while giving back to the community.
The economics of gambling (or gaming), as a sub-field, has really taken off only since the early s, when casinos began expanding outside of Nevada and Atlantic City. Kelly O'Dwyer's considered response on Q&A to questions about the rich v poor divide neatly illustrates what this election, in economic terms, is really all about, writes Michael Bradley.
Increasing fiscal pressure on state budgets, the fear of lost revenue to casinos in neighboring states and a more favorable public attitude regarding casino gambling all have led to its acceptance, according to the National Gambling Impact Study Commission's Final Report.