COVID-19 impact on the mob
The New York Mafia has lost out on tens of millions of dollars in illegal gambling revenue as a result of the ongoing coronavirus pandemic.
Chief lawmakers Rudy Giuliani and Bobby Kennedy have for many years tried to shut down the mob’s illegal operations. Now it seems that the novel coronavirus (COVID-19) has been the most effective tool in doing so.
Widespread cancellations
As a result of the pandemic, most major sporting events across the world have been postponed or canceled. The likes of March Madness is one of the most lucrative events for sportsbooks.
According to law enforcement sources who have spoken to the New York Post, this loss of revenue is a “historic blow to the mob.” A source said:
There’s never been a time when they weren’t making money through gambling.”
Initially, it appeared that illegal gambling could continue in a similar fashion while social distancing was in place thanks to online sites. However, it didn’t take long for the major sports leagues and organizations to announce mass cancellations.
Other revenue sources suffering
The New York Mafia has also saw other sources of revenue dry up due to COVID-19. It can no longer extort restaurants in the city, as only delivery options are now allowable. All non-essential construction projects have also been shut down by Gov. Andrew Cuomo.
A law enforcement source spoke about how important construction rackets are to the mob because they are involved directly in construction, as well as in the ports and trucking.
Ongoing sports betting uncertainty
The future now looks uncertain regarding this pandemic. Shutdowns and cancellations are set to continue for the foreseeable future as governments across the world try to contain the deadly virus.
Many sports betting operators are turning to the likes of virtual sports and esports to generate some revenue. However, the share prices of many legal sports betting companies have been decimated, with many of them cutting dividends and issuing profit warnings.
State of affairs in New York
New York has been the state most heavily affected in the US so far. With such a large population squeezed into a relatively tight area, this does not bode well for containing the virus.?
Tens of thousands of cases have been confirmed in New York, with more than 1,000 losing their lives to date. With medical supplies starting to run out, it is a worrying time for the state.?
