Despite legalized gaming, NY tops country in gambling arrests: report

The Empire State legalizing most forms of gambling hasn’t slowed illicit gambling activity, a new report found.

Ironically, New York legalized sports betting in 2022 and now ranks first in both sports gambling and daily fantasy sports participation, but claimed the top spot for illegal gambling activity, logging 339 gambling arrests in 2023 – the most recent year of available FBI data – outpacing Nevada’s 236, WalletHub reported.

The busts are tied to illicit betting operations – often linked to organized crime, where a dry cleaner business, a deli or even shoe-store posing as a front for underground poker rooms and dice games.

New York legalized sports betting in 2022, making almost every form of gambling now legal in the state. JJ Gouin – stock.adobe.com

Last April, a Long Island cobbler was busted for running an illegal gambling ring raising money for the Genovese crime family out of his now-shuttered shoe store.

And on Staten Island, 17 Gambino family associates were arrested in connection to a sprawling illegal sports gambling enterprise that leveraged an offshore website to facilitate bets.

“Because of the infamous organized crime element in New York, there’s always going to be a black market,” said WalletHub analyst Chip Lupo.

Lupo said arrests were also sometimes related to fraud or theft committed to fuel gambling habits.

“Gambling addiction can drive individuals to become desperate when they can’t repay debt,” said Lupo.

Earlier this year, a window shutter installer in the city took deposits of nearly $80,000 from customers to finance his gambling addiction — but never returned to their homes to complete the work. 

Gambling-related arrests in New York have almost doubled since the pandemic, despite increased legalization. zimmytws – stock.adobe.com

Between 1-3% of US adults are addicted to gambling. Men accumulate an average debt of between $55,000 and $90,000, whereas a female gambling addict averages $15,000.

Last year, the gambling industry made a record $71.9 billion in revenue, while consumers have to deal with more than $100 billion in gambling losses annually.

“The house always wins,” said Lupo.

When WalletHub did the study before the pandemic, New York only ranked 12th in gambling arrests, meaning things are getting worse, not better.