Skimming (casinos)
Encyclopedia
"In May of 1963...the FBI turned over to the Justice Department a two-volume document called "The Skimming Report," which detailed the illegal siphoning off of gambling profits by Las Vegas casinos to avoid taxes." The report documented how pre-tax profits from casinos were being routed to various organized crime syndicates across the nation. Unfortunately no one could be prosecuted as the FBI obtained its information by illegally bugging casino money rooms. The money rooms are where the cash from the betting floor is counted and recorded on the casino's books.
Skimming by diverting pre-tax profits is just one of many possible methods. In casinos the patron is betting against the house, so the house has an incentive to fix the games (cards, roulette, slots, etc.). In pari-mutuels (horse and dog track, jai alai) the house instead gets a fixed percentage of the total amount bet, so is theorectically less likely to fix the games. However, pari-mutuels use sophisticated computer systems to handle customer bets and a major scandal involving Autotote
, a major supplier of these systems, has been exposed.
Other methods of skimming, such as arranging for particular employees of organized crime
be allowed to win in rigged games, was sometimes used.
Skimming by diverting pre-tax profits is just one of many possible methods. In casinos the patron is betting against the house, so the house has an incentive to fix the games (cards, roulette, slots, etc.). In pari-mutuels (horse and dog track, jai alai) the house instead gets a fixed percentage of the total amount bet, so is theorectically less likely to fix the games. However, pari-mutuels use sophisticated computer systems to handle customer bets and a major scandal involving Autotote
Autotote
Autotote, which has been renamed Scientific Games, is a company that supplies pari-mutuel wagering systems worldwide. These are automated, computerized off-track and on-track betting systems for betting on horse races, greyhound racing and jai-alai. It is an integrated system for off-track...
, a major supplier of these systems, has been exposed.
Other methods of skimming, such as arranging for particular employees of organized crime
Organized crime
Organized crime or criminal organizations are transnational, national, or local groupings of highly centralized enterprises run by criminals for the purpose of engaging in illegal activity, most commonly for monetary profit. Some criminal organizations, such as terrorist organizations, are...
be allowed to win in rigged games, was sometimes used.