Thats not entirely true Jace.

Agreed, nowadays many states have chosen to legalize sports betting for the revenue and taxes it generates. But also true, many of the bettors who sign on with these sites are amateurs at best, NOT professional dedicated lifelong gamblers of any consequence.

Initially, illegal bookmakers were understandably nervous to have legalized gambling come onto the scene for fear that they'd lose their business. But as its happened in some ways its actually been healthy.... I'll explain.

"Joe the Bookie" cannot advertise himself or the business he offers to the public. Any "customers" he picks up over the years is strictly by word of mouth. Am I right? But with the overwhelming, daily "in your face" TV, magazine, online, etc., advertising now being done to bring in gambling customers to these sites it's actually "creating" new betting customers to the gambling industry who never before would have even thought of betting with a mob bookie.

Eventually, some of these more aggressive bettors will tire of getting "banged" over the head with having to pay 30% or better "taxes" on any winnings they may garner. Additionally, customers of these sites cannot bet "on credit" as they can when they start a relationship with a mob bookmaker. Going "week to week" floating their line of credit so to speak.

Imagine having to pay a tax "chop" of over $3000 to the state if you get lucky and win yourself a $10,000 bet?....No?, well serious gamblers can't either, and they won't!

Lastly, when some of these guys lose for the week and maybe don't have the money to pay off their gambling debts, they have no recourse with the state. With no money, they can't bet right? Because they gotta "post up" cash before they can place a bet right? But with an illicit book, they can continue to bet "on credit," and often even get a loan the following week from their handbook to pay off their bookie so they can continue betting.

Granted that the loan may come with a high vigorish rate, But thats ok for them. Because they know the terms, and agree to them. And they can still jump into the betting "action."
--
Recap: 1) FREE Advertisement means NEW bettors for the illegal book. 2) Line of credit available with the illegal bookie. 3) NO taxes whatsoever to be paid on any winnings. 3) access to shy loans if required. 4) a personal "relationship" and often even a "friendship" with their longtime bookie.
--
Remember too that any bettor who's had a relationship with his bookie and betting "office" is NOT going to abandon him now so he can go bet with some jerk off "legal" sports-book. He might curiously open an account and try it for shits and giggles. But at the end of the day he has a long running, mutually friendly relationship with his bookie. 99% of all serious bettors are staying put!

Because of all I've written above, not surprisingly most New York City illegal books are still thriving. (this I know firsthand through many friends of mine).

What the future holds? Well, I guess we'll just have to wait and see. But for now things are very stable in the illegal bookmaking business.