The Numbers Racket
And how could I forget about the granddaddy of all gambling hustles: Lotteries. The similarities between the Lottery and old-school numbers runners and policy bankers always surprised me—that is, until I did some research:
From the 1900s until the early 1960s folks like Dutch Schultz, Newsboy Moriarty, Lucky Luciano, Casper Holstein, and other mob families were made tens of millions annually from numbers racketeering. They bought off cops. Officials. Everybody. Even when Adam Clayton Powell, Jr. and the Feds went after ‘em in the 1950s they still couldn’t stop it. So, just like with alcohol and prohibition, Uncle Sam got in on the action.
Enter: state lotteries.
Invented around 1963, America’s state lotteries currently make an estimated $40 billion a year (that we know of). Most states run numbers—make that “hold drawings”—2-3 times a day: Lotto. Super Lotto. Pick 3. Pick 4. PowerBall. MegaBucks… And recognize: Scratch ‘n’ Win’s are just slot machines on paper. The rest is pure racketeering. Daily lottery tickets are just like the numbers only now your state is your bookie and you pay upfront. And if you think some of this loot isn’t getting skimmed and funneled by God knows-who for God-knows-what just like in the old days then you probably believe that it’s a complete accident that players in our poorest and darkest communities seldom if ever win more than a few bucks or free tickets.
And besides easy money, marketing types like me are a big reason folks accept numbers running as legit. We launch slick, feel-good ad campaigns. Endless PR-spin about how lottery revenues fund education and public works, which is obvious based on the condition of our schools and streets. Plus, warmhearted profiles of select big winners… Let’s face it: Most state lottery officials are just glorified pit bosses.
But with that said, do we view gambling as negative? For the most part: nope. Do the cops or the Feds ever conduct raids or stings in the business world? Rarely. Why? (1) Too much power. Remember: For the most part, Congress calls Corporate America calls when they need favors. Besides, how would you like to have the ATF or DEA busting down your cubicle every basketball season? (2) Money. Sometimes, sin is so profitable you just have to look the other way.
From the 1900s until the early 1960s folks like Dutch Schultz, Newsboy Moriarty, Lucky Luciano, Casper Holstein, and other mob families were made tens of millions annually from numbers racketeering. They bought off cops. Officials. Everybody. Even when Adam Clayton Powell, Jr. and the Feds went after ‘em in the 1950s they still couldn’t stop it. So, just like with alcohol and prohibition, Uncle Sam got in on the action.
Enter: state lotteries.
Invented around 1963, America’s state lotteries currently make an estimated $40 billion a year (that we know of). Most states run numbers—make that “hold drawings”—2-3 times a day: Lotto. Super Lotto. Pick 3. Pick 4. PowerBall. MegaBucks… And recognize: Scratch ‘n’ Win’s are just slot machines on paper. The rest is pure racketeering. Daily lottery tickets are just like the numbers only now your state is your bookie and you pay upfront. And if you think some of this loot isn’t getting skimmed and funneled by God knows-who for God-knows-what just like in the old days then you probably believe that it’s a complete accident that players in our poorest and darkest communities seldom if ever win more than a few bucks or free tickets.
But with that said, do we view gambling as negative? For the most part: nope. Do the cops or the Feds ever conduct raids or stings in the business world? Rarely. Why? (1) Too much power. Remember: For the most part, Congress calls Corporate America calls when they need favors. Besides, how would you like to have the ATF or DEA busting down your cubicle every basketball season? (2) Money. Sometimes, sin is so profitable you just have to look the other way.
Ain’t nuthin’ but crooks in here,
gettin’ mad money off the books this year…
—The Beatnuts, Big Pun, & Cuban Linx
gettin’ mad money off the books this year…
—The Beatnuts, Big Pun, & Cuban Linx
It’s the first of tha month…
Say “welfare” and most envision minority women towing a bunch of babies and spending up food stamps. But truth be told, most welfare recipients are poor whites; secondly since the 1920s corporations have gotten more tax breaks than anyone. We pay farmers not to grow certain crops. We give guaranteed loans and bailouts to certain industries. Congress packs pork and set-asides into just about every bill it passes. And you could do a Million Workers’ March with the beneficiaries of corporate and political nepotism alone.
Then there are those ‘company’ loans: High-level executives borrow from their companies all the time—usually with ridiculously lax deadlines and wafer-thin interest rates. At best it’s an elitist credit union; at worst, it’s worker-subsidized welfare. And if it’s not shiesty loans, it’s suspect stock option packages, many of which are little more than off-the-books cake shoved through SEC loopholes. But of course these cookie jars are only open to your company’s highest-level execs—the ones you only see on the business shows or in your company’s annual report.
And don’t sleep on petty cash and company credit cards. Petty cash gets abused regularly at larger companies. As for company credit cards: “Here’s a monthly credit line—give us the receipts and we’ll foot the bill.” They’re no different from WIC cards. And they might as well call expense accounts by their real name: Food Stamps.
Still, for all the parallels, folks in the projects would much rather sit in big ugly office buildings making $100K, or even $30k a year while most businessfolks wouldn’t switch places with them for anything.
It was important to share all of this because once I saw the parallels between where I was from and where I was at, The Hustle got a whole lot easier to knock. And once you do the same, the game will get easier for you, too.
Then there are those ‘company’ loans: High-level executives borrow from their companies all the time—usually with ridiculously lax deadlines and wafer-thin interest rates. At best it’s an elitist credit union; at worst, it’s worker-subsidized welfare. And if it’s not shiesty loans, it’s suspect stock option packages, many of which are little more than off-the-books cake shoved through SEC loopholes. But of course these cookie jars are only open to your company’s highest-level execs—the ones you only see on the business shows or in your company’s annual report.
And don’t sleep on petty cash and company credit cards. Petty cash gets abused regularly at larger companies. As for company credit cards: “Here’s a monthly credit line—give us the receipts and we’ll foot the bill.” They’re no different from WIC cards. And they might as well call expense accounts by their real name: Food Stamps.
Still, for all the parallels, folks in the projects would much rather sit in big ugly office buildings making $100K, or even $30k a year while most businessfolks wouldn’t switch places with them for anything.
It was important to share all of this because once I saw the parallels between where I was from and where I was at, The Hustle got a whole lot easier to knock. And once you do the same, the game will get easier for you, too.
Don't get me wrong; America's a great place to live
just listen to the knowledge I give
—KRS-One
just listen to the knowledge I give
—KRS-One
