Crime and Justice Atlas

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Offense

Illegal Gambling

Public Order and Morality Offenses

The operation of, or participation in, a betting or wagering scheme that a jurisdiction's law does not license or otherwise permit, including unlicensed bookmaking, illegal casino operations, and, increasingly, unlicensed online betting sites that accept wagers from a jurisdiction where such betting is restricted. What counts as illegal varies substantially between jurisdictions and has shifted considerably over recent decades as many countries and, in the United States, individual states have legalized and regulated forms of gambling that were previously prohibited outright, narrowing the scope of the offense to unlicensed operations that continue to evade the resulting regulatory and tax framework. It has historically been closely associated with organized crime, which operated illegal gambling as a major revenue source before widespread legalization reduced that role.

Facts
Classification Code
Gambling is classified at common law by three elements, consideration, chance and prize, and an operation becomes illegal gambling when it meets those elements while violating the licensing or prohibition law of the jurisdiction where it operates. 1
Typical Penalty
The federal penalty for operating an illegal gambling business is a fine under Title 18 or imprisonment of not more than five years, or both, and the statute separately authorizes the government to confiscate any money or property used in violation of the section. 2
Elements of Offense
Under United States federal law, an illegal gambling business is one that violates the gambling law of the state or locality where it operates, involves five or more persons who conduct, finance, manage, supervise, direct or own all or part of the business, and has either remained in substantially continuous operation for more than thirty days or generated gross revenue of $2,000 in any single day. 2
Notable Example
Illegal gambling enforcement has reached into diplomatic circles as well as private operators: in 2014 Ghana's ambassador to Japan, Edmond Kofi Agbenutse Deh, was recalled after a casino was raided in a property belonging to the Ghana embassy. 1
Jurisdiction Variation
Regulatory approaches diverge sharply by country: the United Kingdom's Gambling Act 2005 built a licensing regime, transferring authority for licensing gambling operations from the magistrates' courts to local authorities and Scottish licensing boards, while United States federal law instead treats an unlicensed gambling operation of sufficient size as a crime outright. 3
Classification
Offense Grade
Minor or Summary Offense 1
Connections

Associated With

Source Wikipedia: Money Laundering
In the Other Atlases
Sources
1. Illegal Gambling (Wikipedia)
Wikipedia
  • Introduction, common law elements
    gambling requires consideration, chance and prize
  • Japan section, Ghana embassy casino raid
    In 2014, Ghana's ambassador to Japan Edmond Kofi Agbenutse Deh was recalled after a casino was raided in a property belonging to the Ghana Embassy.
View the Source
2. 18 U.S. Code section 1955 (Cornell LII)
Cornell Law School, Legal Information Institute
  • 18 U.S.C. 1955(b)(1), five-person threshold
    involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business
  • 18 U.S.C. 1955(b)(1), continuity or revenue threshold
    has been or remains in substantially continuous operation for a period in excess of thirty days or has a gross revenue of $2,000 in any single day.
  • 18 U.S.C. 1955(a), federal penalty clause
    Whoever conducts, finances, manages, supervises, directs, or owns all or part of an illegal gambling business shall be fined under this title or imprisoned not more than five years, or both.
View the Source
3. Gambling Act 2005 (Wikipedia)
WikipediaGambling Act 2005, licensing authority transfer
Quote, Gambling Act 2005, licensing authority transfer
It transfers authority for licensing gambling from the magistrates' courts to local authorities
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Wikipedia: Money Laundering
Associated With: Money Laundering, Definition section, Features
Quote, Associated With: Money Laundering, Definition section, Features
Money obtained from certain crimes, such as extortion, insider trading, drug trafficking, human trafficking, and illegal gambling is 'dirty' and needs to be 'cleaned'
View the Source
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