Gambling can be viewed as the act of risking money (or equivalent) on an uncertain chance of winning a larger amount of money (or some other good). Gambling may involve some element of skill (e.g., poker, horse track bets) or be determined by pure chance (e.g., slot machines, lotteries) (Turner & Fritz, 2007). In nearly all cases, the long-term expected result for the player is a loss. Gambling and its link with criminal activity is an area of growing research interest. Studies from various regions worldwide have suggested an association between criminal activity and easily accessible gambling, yet, despite growth in the commercial gambling industry, relatively little is known about the nature, extent or impact of gambling-related crime. Many types of gambling have been, indeed still are, illegal. Hence, by definition, criminals were the only operators of games. When gambling restrictions were relaxed, criminals were the first to open up legal gambling establishments. A lax regulatory framework in Nevada did not prevent members of organized crime from openly owning and operating casinos. To some degree, Nevada needed the criminals to make gambling viable because no one else had their expertise and experience.
Nevada was plagued by teamster financing, hidden ownership, employment of individuals of questionable character and background, and the clear links to organized crime. In this context, organized crime doesn 't just mean Mafia. Nevada improved its regulation only under the threat of federal intervention. The federal government believed, with good reason, that Nevada casinos were fueling organized crime throughout the country.
Because of this history, the concern about organized crime usually is raised whenever legalizing gambling is discussed. Even when New Hampshire began its state lottery in 1964, there was concern that organized crime would take over.
Much has changed since the days when Bugsy Siegel started the first
References: http://jgi.camh.net/doi/full/10.4309/jgi.2010.24.5 http://laplaza.org/~totem/gam1.html http://www.library.ca.gov/crb/97/03/Chapt11.html http://www.internetjournalofcriminology.com/Griffiths_Betting_Shops_and_Crime.pdf http://aic.gov.au/en/events/aic%20upcoming%20events/2003/~/media/conferences/evaluation/crofts.ashx William R. Eadington, "The Legalization of Casinos: Policy Objectives, Regulatory Alternatives, and Cost/Benefit Considerations," Journal of Travel Research vol. XXXIV, no. 3 (Winter 1996) p. 5. http://drum.lib.umd.edu/bitstream/1903/2377/1/umi-umd-2236.pdf