Gambling Underground

Posted on4/13/2022by admin

Here’s a question for you—are underground casinos illegal? Well, a lot of that depends on where you live… Or does it?

There are about 200 underground gambling dens operating nationwide, and 47 of those are in the Bangkok metropolitan area, according to a government panel, set up last month, to find out if there were any officials behind the gambling.

In this post, I examine the legality of underground casinos in various cities and states. It can really vary, so there’s a thing or two that you ought to know about underground casinos and gambling in general.

Authorities tackle problem of underground gambling in Kuwait. The Kuwait Times 3 days ago. 0 2 minutes read. Facebook Twitter LinkedIn Tumblr Pinterest Reddit WhatsApp. Kuwait police arrested several expatriates involved in an illegal gambling.
In this opening episode of Cheating Vegas, we learn the classic tricks and scams that vegas cheaters pull to get away with millions. We learn how to spot a c.

Keep reading below to learn more about the legality of underground gambling operations.

What Is an Underground Casino?

Before you can say whether an underground casino is legal or not, you need to know exactly what an underground casino is. Basically, an underground casino is any gambling business or establishment that’s circumventing the law by operating discreetly or “underground.”

This might include your local bar. I used to drink at a bar in Dallas that had three slot machines called eight-liners. And that’s what they were called because they each had eight paylines.

They weren’t supposed to pay out cash. In fact, if you won money on one of the machines, you didn’t get the money immediately. You had to come pick up your money in an envelope from the owner of the bar on Friday. The bartender kept records of who won each week.

I figure that each of those three games earned at least $100 a day, making them quite a bit of money per week in additional revenue. That could be a significant amount of money for any bar, but especially one that’s small.

Real money slot machines, by the way, are illegal in Texas. This makes that bar, by definition, an “underground casino.”

More Examples of Underground Casinos

The most common example of an underground casino in the Dallas area is the underground poker room or cardroom. These operations were commonplace 20 years ago when I started playing serious poker, but they went through a period where they were getting raided by the vice squad. Many of them closed.

I was friendly with a couple of guys who ran underground cardrooms who served some time on probation and had felony convictions after running these businesses. Yes, those underground cardrooms were illegal. In Texas, you’re not allowed to run a gambling business that collects a rake from poker players. And they were definitely doing that.

In a sense, these underground cardrooms weren’t really casinos because they didn’t offer “casino games.”

I always make a distinction between casino games and poker games because casino games are, by definition, banked by the house. Poker games are banked by the other players.

In the eyes of the state of Texas, though, an underground gambling den is illegal regardless of who’s banking the action.

Enforcement increased when the Winstar started getting bigger. I’m not convinced that this was just a coincidence either.

What Is It Like to Gamble in an Underground Casino?

If you’ve watched a lot of casino movies, you might have some idea about fancy high-roller underground casinos where the patrons are well-dressed, and everyone is drinking something expensive and fancy.

You’ll be disappointed at most underground casinos because that’s not what most of them are like at all.

Most of them are more like the bar I talked about earlier in this post. They tend to be dingy, small, and offer low stakes gambling.

Another example of an underground casino is the “game room.” In Texas, every now and then, someone gets the idea to open a game room. It’s a business that’s full of eight-liners, which are just slot machines by another name.

They try to skirt the law in various ways. I visited one in a small town once where you weren’t allowed to put actual coins or cash in the machines themselves. You had to buy credits on a card that you inserted into the machines for credits. This was an attempt to stay within the law.

The other funny thing about this game room was how the prizes worked. You couldn’t win cash there, just points. You could use those points to buy prizes from the prize table.

I examined the prizes available on the prize table on a couple of visits. I laughed when I saw that one my options was a six-pack of canned cream style corn. I laughed again when I saw a cheap set of gardeners’ tools.

Slot Machines in Gas Stations and Convenience Stores

Depending on the neighborhood, you can often find convenience stores and gas stations with a bank of eight-liners in them. These are also, by definition, underground casinos. They’re just underground casinos that also offer things like snacks, chips, and gasoline.

These seem to have more luck than the game rooms, probably because they have a plausible business outside of their gambling activities.

Also, for the police to arrest you, they have to be able to prove that you’re running an underground gambling business. Presumably some of the businesses offering these gambling games are good at keeping these activities subtle, secret, and well… underground.

Underground Casinos in Gambling Destinations Like Las Vegas

You’re not likely to find underground casinos in gambling destinations like Las Vegas. The businesses offering gambling activities in a town like Vegas have a lot of money and influence. Why would they not use that money and influence to crush small competitors operating outside of the law?

Also, why would anyone want to gamble at your underground casino when they could just as easily visit a legal, above-ground casino with security, drinks, and scantily-clad cocktail waitresses?

I could be wrong, though. Maybe there are underground casinos all over Vegas. Did you know that there are homeless people living in the tunnels underneath the city?

I’ve read about them, but I don’t think they’re doing any gambling down there. It sounds like they lead a hard-scrabble life and are just barely surviving.

Besides, an “underground” casino isn’t literally underground. It’s a figure of speech.

Underground Casinos Have a Cultural Component

Some cultures and subcultures enjoy gambling activities specific to their heritage. For example, a lot of Asian communities enjoy gambling. If you’re visiting a city big enough to have a Chinatown, chances are good that there’s at least one underground casino in that part of town. And that underground casino probably offers games popular with Asian gamblers. Baccarat is popular among Asian gamblers, so are pai gow, sic bo, and pachinko.

Of course, slot machines seem to be ubiquitous in underground casinos everywhere in the country.

Are Tribal Casinos Considered Underground Gambling?

Several years ago, the United States passed a federal law related to allow Native tribe casinos. These tribes have some degree of autonomy from the United States government but, of course, they must still abide by the law.

Such tribes have agreements with their state governments called “compacts,” and these compacts agree to specific rules related to the operation of casinos by these tribes in these states.

These tribal casinos are NOT underground casinos. They’re operating in full view of everyone with the blessing of the state government, although occasionally, you’ll see a state’s government disagree with the legality of a specific casino. That’s rare, though.

What kinds of restrictions do Indian casinos have? It depends on the state, but one of the common restrictions has to do with the type of gaming the casino is allowed to offer. Until recently, Oklahoma casinos could only offer Class II games and no Class III games.

This means the slot machine games operated like a bingo game where all the players were competing with each other in a parimutuel electronic bingo game. It’s seamless for the customers, but the machines have an LED screen with a bingo card on them. The reels are just for show.

Another restriction that’s common with Native American casinos has to do with how random results are generated. Many times, cards are allowed, but dice and spinning wheels are not.

This has led to some interesting innovations from these casinos who want to offer craps and roulette. They figure out ways to generate results using a deck of playing cards, then “translate” those results into a virtual roll of the dice or spin of the wheel. But the outcomes are always based on the cards that got drawn.

Tribal casinos are likely here to stay, but they’re operating on the up and up.

Conclusion

Yes, according to US gambling laws, underground casinos are illegal. That’s the definition of “underground casino.” If they were legal, they would be aboveground casinos.

And no, most of them don’t look anything like the underground casinos you see in movies. They’re a lot less glamorous.

If you’re a business owner, they’re also risky. Vice squads are no fun to deal with when you’re breaking laws. They also offer little in the way of security, and who knows whether they cheat or not.

My suggestion is to stick with legitimate casinos that are licensed and regulated. Stay away from the underground casinos. You can get more out of your gambling buck at online casinos or make a trip out to a state-regulated establishment for some real fun! Underground casinos just don’t offer a lot of upside.

There are 2 types of underground casinos:

The kind operated by criminals.
The kind operated by the North Koreans out of their embassies.

I don’t know how or why North Koreans run illegal gambling operations. The first rule of North Korean gambling club must be that you don’t talk about North Korean gambling club. Every country on Earth, including North Korea, outlaws one or more forms of gambling. Yet there are thousands of legitimate casinos, many owned and operated by national or regional governments.

Is illegal gambling outlawed because it’s bad for you or because it competes with the government? Numerous academic studies document the downside of illegal gambling. Many underground casinos are operated by criminal organizations. You’re a criminal if you break the law, but you’re an organization if you work with others to break the law.

Uncle Fred’s weekly poker game may be illegal, but he’s probably not running an underground casino. The local sheriff may care about Fred’s weekly game only because he needs to win re-election. There are real downsides to gaming in, working for, or owning an illegal casino. Yet millions of people support the underground gambling industry every year. What is the appeal?

1- In the United States, Not Every Underground Casino Is Illegal

As I’m not a lawyer, take this statement with a grain of salt. If you’re not sure what is illegal, check your local codes or ask an attorney. The federal definition of illegal gambling is surprising. Although state laws may differ, federal law allows up to 4 people to “run games” for money. In other words, if you live in a state that defines illegal gambling as involving 5 or more people, you may be safe. But there are other rules, too.

These are the key points of the federal law defining illegal gambling business:

The business violates a state or local law;
The business involves 5 or more people;
The business runs for 30 days or longer;
The business has a gross revenue of $2000 or more in a single day.

It makes sense that federal law chooses to ignore petty gambling. If your kids run a game for a couple of weeks and only a couple hundred dollars is exchanged, they aren’t risking federal prosecution. I gambled with my friends when I was a kid, but only occasionally. But even in states that don’t prohibit home games, if 5 people gamble regularly for a year that’s illegal. Maybe the F.B.I. won’t be knocking down your door, but you’re running an underground casino. Remember to share that at confession.

A “social purpose” is any activity that somehow benefits society as a whole. The moral or ethical implications of the social purpose may be negative or positive. A natural example of social purpose is how young stallions drive older males away from their herds. The species benefits from new genes entering the family line.

Imagine some young guy bursting into your home and taking your wife and kids. I almost feel sorry for the old stallions. Underground casinos give people who can’t gamble elsewhere a place to gamble. That includes you if you just do it for fun, and it includes problem gamblers. It also includes criminals who can’t gamble in public.

Underground casinos flourish in places known for their high moral standards. Take Utah, heartland of the Mormon Church; the state has a flourishing underground casino industry. If people cannot gamble legally, they will gamble illegally. Every community with an underground gambling industry regulates that industry in some way. Society tolerates gambling between friends. Normally, only the predatory gambling operations draw society’s occasional retribution.

3- Why Criminal Groups Manage the Big Money Underground Casinos

In the movie Rocky, the hero Rocky Balboa asks old boxing coach Mickey why he always talks down to Rocky. Mickey tells him it’s because “you became a leg breaker”. Rocky was a good boxer who used his talent to collect money for a loan shark.

If you decide to start your own underground casino, sooner or later you’ll loan money to players. Sooner or later one or more those players will lose that money. How will you collect? Those stories you hear about thugs taking cars, boats, and other valuables are true. It happens. No matter how good-hearted the casino boss is outside work, at work he wants his (your) money. To build up any kind of big illegal operation you need muscle to collect from your debtors. Worse, you need protection against the criminals will would otherwise rob you.

An anonymous woman from the Netherlands shared her experiences working in underground casinos with Vice. She witnessed a lot of criminal activity. One customer was robbed as soon as he left with his winnings; other players plotted heists as they gambled. The average good guy family man won’t last long in this world. He’ll either start doing what the other criminals do, or he’ll be run out of the business. And that’s why organized crime controls the most profitable underground casinos.

Moral arguments against gambling aside, research shows that illegal gambling breeds more crime than legal gambling. There are several reasons why that happens. It doesn’t take a genius to see what is going on. Underground casinos are like black holes of criminal intentions.

People are less likely to feel inhibited in an underground casino. That Vice article mentions how the young woman was fired for resisting a customer’s advances. Her casino boss didn’t care about or protect her. The lack of inhibition in an underground casino is encouraged by the bosses. They create the façade of a safe environment. Their armed guards won’t come out into the street to defend you if you are robbed.

The presence of an illegal casino is a sign that “the police are not watching”. If the casino can operate with impunity then so can others. The more people who gamble at an illegal gaming establishment, the more likely some of them are active criminals. Gamblers already take risks. Criminals take even more risks, and now they are gambling in uninhibited environments.

If everyone in town can just roll into the local legitimate casino, why would anyone patronize an illegal parlor? Researchers have found several reasons why illegal gambling co-exists with legal gambling. One surprising explanation is that sometimes people just think the illegal gambling is cooler.

Illegal casinos accept patrons who are turned away by legal casinos. If you lose your line of credit at the big casino downturn, your neighborhood casino may loan you money. They charge higher interest and send someone to collect. Another reason why illegal gambling continues is that local legal gambling may not meet all demand. In a state that only allows lottery games, players run their own card games. Players may still find slot machines hidden away in small businesses and old buildings.

Gambling addiction also contributes illegal gaming operations. Addicts are more likely to play at local establishments than to drive 1 or more hours to a legal casino. Wallethub found that gambling addiction runs high in states with both legal and illegal gambling. Estimates vary on what percentage of the population is prone to gambling addiction. The numbers run from about 2% to 10%. Maybe these estimates vary based on region and economic period.

6- Underground Casinos Depend on Word of Mouth Advertising

The Internet is a real game changer in the world of gambling. Make no mistake, if you want to start gambling today, you can begin wagering in less than an hour. But underground casinos still rely on word of mouth advertising. In 2008, a poker player from New York shared his story with the New York University Street Level magazine. In the article he mentioned how he waited to hear from a friend about a poker room re-opening.

Gambling Sites Online

This sounds like the Six Degrees of Kevin Bacon game. The game is based on a sociological theory that you are about six relationships removed from any other person in America. Theoretically, you could hand a letter to a friend and ask that it reach the President, and he’ll eventually receive it. By the same token you can ask a friend if they know where you can get in on a card game. If your friend doesn’t know, your friend has a friend. And if that friend of a friend doesn’t know, they have a friend. Just ask and you’ll find your game.

The more people who know about an underground casino the faster the word spreads about it. And because illegal gaming establishments shut down all the time people are willing to share news about new games. The underground gambling scene, just like other underground social activities, thrives on word of mouth.

Underground Free Slot Games

Legal gambling businesses must file reports with government regulatory agencies. In many countries those reports are a matter of public record. Economists, journalists, and lawmakers study these reports to estimate future tax revenues and shape policy.

But no one is reporting income in the illegal gambling industry. There are no tax revenues. Nor is there a central reporting agency where law enforcement collects statistics about money seized. Illegal gambling operates in a dark economy. This economy has spawned estimates that rise into hundreds of billions of dollars spent annually. And that’s just what some people believe is wagered illegally in the United States.

Economist Jay Zigorsky challenges those ballooning estimates with a thoughtful essay. He takes a recent estimate of illegal American gambling (about $150 billion) and compares it to a projection. Zigorsky’s projection is based on data from the United Kingdom.

If Zigorsky’s assumptions and calculations are correct, then illegal gambling in the United States accounts for a modest $67 billion per year. But no one really knows how much money is being wagered across the land and across the world. The UK data doesn’t include home-based card games.

How does this measure compared to other economic activity in America?

The US auto industry generates about $700 billion in sales each year
The US real estate industry generates about $13.6 trillion in sales each year
US retail sales generated about $5.7 trillion in revenue in 2017

On this scale of economic activity maybe a $100 billion error in estimate doesn’t mean much. But if you’re really curious about how much money changes hands every year, it’s a guessing game.

Despite many years of research by government agencies and academics, illegal gambling continues to be enigmatic. We can’t even agree on what is an underground casino. Does that include your dining room because you and 6 friends play poker every week?

Underground Gambling Chicago

Loopholes in the law and inconsistent enforcement make illegal gambling appealing. The pop image of a seedy, smoke-filled secret gambling parlor may be very misleading. No doubt there are many such places scattered across the globe, but the “average” underground casino probably looks like home. Outside the friendly weekly card game, illegal gambling earns its reputation for being risky and even dangerous. Your choice of venue is important. The gambling boss won’t protect you against theft, and he’ll only care about cheating that harms his reputation.

Workers don’t receive health care or other benefits. Worse, if they rebuff the guests their bosses may stigmatize them with other illegal casino owners. Everything that protects an employee in a legal business is missing from this industry. And one question is always impossible to answer: how much can you trust the guys running underground casinos to run honest games?

Even if the local gambling den is run by your good neighbor down the street, would you want to be indebted to him? Would you want your daughters to be his hostesses? Would you want your sons to learn how to gamble in that environment? Despite the larger than life sense of adventure underground gambling houses cultivate, there are safer alternatives. Keep it among your friends or play online if the nearest legal land-based casino is too far away. Some risks are not worth taking.

Gaming Underground

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