CNBC Special: NBA Ref on Illegal Gambling

The seedier side of gambling was showcased on CNBC last week, with a one hour investigation into illegal gambling in the US. In ‘The Big Business of Gambling' Melissa Francis followed the money trail to discover the main players in the multi-billion dollar industry.

The program highlighted the popularity of gambling in America today, with millions placing illegal bets, particularly on sporting events via illegal bookmakers. Online casinos are also gaining widespread popularity.

The show interviewed people involved in different aspects of the industry. We heard from;

• The founder of PreGame.com, R.J Bell, who stated that as just 1% of US sports betting originates in Vegas, that the remaining 99% must be illegal. That's a gigantic figure and effectively highlighted the scale of gambling activity in the States today.
• It told the personal stories of illegal bookmakers, both the lucrative gains the can make as well as the risks they run in taking wagers.
• The CNBC show didn't shy away from the darker side of the industry and highlighted how the Mob's main income comes from illegal gambling operations.
• Francis caught up with Jay Cohen, who has the dubious honor of being the first American prosecuted under the 1961 Wire Act for his World Sports Exchange operation which took $200 million in bets at its peak. Cohen argued in court that the Wire Act did not apply to the internet but his argument fell on deaf ears and in 1988 he spent 21 months behind bars.
• The investigation went on to look at some infamous online cheating incidents, in particular the Ultimate Bet poker scandal.

Having highlighted some personal stories and famous incidents the show culminated with a review of the current legal situation.

• Democrat Congressman Jim McDermott, a pro regulation campaigner, described his reading of public opinion, "Usually, when we talk about putting a tax on people, we get all kinds of [pushback]. They're saying, ‘Legalize it, please, and tax it.'"
• Republican Congressman, Bob Goodlatte had an opposing view and explained the effect of the Unlawful Internet Gambling Enforcement Act. "It certainly hasn't eliminated all internet gambling by any means, but surveys that I've seen indicate that fewer than half as many online gambling operators are offering their services in the U.S. than before this law was passed."

The show was well received and comes at a time when the legality of gambling in the US is receiving more media attention and gaining wider public discussion.