Gambling

English attitudes and opinions prevailed in the "New World", and created gambling in America. Settlers brought with them the view that gambling was a harmless diversion. In these colonies, gambling was a popular and accepted activity. Legal gambling tended to be those types that were considered gentlemen-like. For example, it took a long time for cock fighting and prize-fighting to become legal because it was not considered a suitable gentlemen's' game.

Although the financial backers of the colonies viewed gambling as a source of the colonies' problems, they began to see it as the solution as well. The Virginia Company of London was permitted by Britain to hold lotteries and raise money for the company's colonial venture. The lotteries were relatively sophisticated and included instant winners. Eventually, Britain banned the lotteries because of complaints from the English back home that felt that they were robbing Britain's money. Proceeds helped establish some of the nation's earliest and most prestigious universities -- Harvard, Yale, Columbia, Dartmouth, Princeton, and William and Mary. Lottery funds were also used to build churches and libraries. Among the lotteries was a private lottery passed by Congress in 1823 for the beautification of Washington D.C. Unfortunately, the organizers run off with the proceeds and the winner was never paid.

Lotteries were not the only form of gambling during this era; wagering on horse racing was a popular form of gambling. Unsurprisingly, it was not quite as organized as modern horse racing. The first racetrack in North America was built on Long Island in 1665.

Casino gaming started slowly. Taverns and roadhouses would allow dice and card games. The relatively sparse population was a barrier to establishing gaming houses, but as the population increased, by the early 1800s, lavish casinos were established in the young republic. During the 1830's, the actions of the professional gamblers came under growing scrutiny and southern settlers turned against the professional gambler.

The anti-lottery forces fought against lotteries and prevailed. In 1833 Pennsylvania, New York, and Massachusetts put an end to state authorized lotteries. By 1840, most states had banned lotteries. By 1860, only Delaware, Missouri, and Kentucky still allowed state-authorized lotteries. Nevertheless, the tickets of these few states were shipped around the country by mail or smugglers. The prohibition also led to the creation of illegal lotteries.

The gold rush brought a huge increase in the amount and types of gambling to California; San Francisco replaced New Orleans as the center for gambling in the United States. The market for gambling space was so strong that a mere canvas tent, 15 by 25 feet, cost $40,000 annually, payable in advance with gold dust.

As settlers spread beyond California, so did gambling. In general, gambling and the west were intimately linked. Gambling was especially widespread in the mining camps that multiplied as the miners spread across the west searching for new strikes. Laws against gamblers and gambling began to be enacted in California. As with the rest of the United States, the desire for respectability and recognition of the social ills tied to gaming led to limits on gambling. The Legislature made most types of gambling illegal. However, the Legislature's initial aim was more to target the professional gambler than gaming in general. Gamblers were affiliated with municipal corruption and were blamed for the depression that was occurring at the time. Lynching of professional gamblers occurred in San Francisco in 1856, in part a result of the fight for political control of the city.

Once again lotteries make a come back to help pay for the post war effort, the South turned to lotteries to generate revenue to rebuild the destroyed land. The Louisiana lottery was the most notable because of its unseemly end. In 1868, the Louisiana Lottery Company was authorized and granted a 25-year charter. A mobster from New York bribed the Legislature into passing the lottery law. The Louisiana Lottery became an interstate venture with over 90% of the company's revenue coming from outside Louisiana. This lottery was a prolific moneymaker. Attempts to repeal the 25-year charter were defeated with assistance of bribes to legislators.

Horse racing was plagued by fraud. The odds and payouts were often faked. The parties taking the bets, known as the bookmakers, often owned horses and were able to influence the race. "Ringers," horses that were fraudulent substitutes and were either much quicker or slower than the expected entry, were often raced. .

The great depression led to a much greater legalization of gambling. The antigambling mood changed as tremendous financial distress gripped the country, especially after the stock market crash of 1929. Legalized gambling was looked upon as a way to stimulate the economy.