In the movie, Goodfellas, Henry was really nervous about being in big trouble for getting caught dealing. He said that Paulie had a strict no drugs rule.
However, in Mob Boss, D'Arco discusses a different side of Vario. Shortly after he was inducted into the Lucchese family, Paulie (D'Arco's capo) approached him to help move a large quantity of coke. D'Arco didn't get involved, in part, because of his recent vows in his induction ceremony. But I found it interesting that Paulie was in the middle of large cocaine deals.
The Luccheses seemed to be heavy into narcotics. In addition to the Vario crew, the Ray's pizza crew dealt heroin for many years; and Vic/Gas made their fortunes selling drugs.
It has been more than 20 years since story about Vario chasing Hill away for drug deals was published. My take on it and this new book is that the new story is something Al D'Arco or the authors fabricated in order ot bring up Henry Hill and Vario. I thought book was awful in many spots. When they reached the part where Casso went crazy and started killing everyone book got exciting for a bit, then authors seemed to not know how to describe the events well and book went downhill again.
Going by what book says, Casso and Amuso made more money from union skimming than from drugs. D'Arco kept bringing them bags of money every few months during their time on the run.
