Gambling is a very risky form of entertainment, as after losing, most players cannot stop and try to get back what they lost. The main character of the famous film "The Gambler" gets into debt, borrowing thousands of dollars, trying to win back. Despite the fact that this is a fictional blockbuster, in real life such situations are very common. For example, a striking example is a high-stakes gambler of Japanese origin. We are talking about Akio Kashiwagi, who was found dead one fine day. The killers were never found, but investigators are sure that big money and loan sharks who actively sponsored the gamer were involved in this case.
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Back in the 19th century, clubs appeared in the Russian Empire where gambling enthusiasts enjoyed spending time. To become a member of such an establishment, it was necessary to make a substantial contribution. This was the reason why it was mostly not poor people who played in the club. Many borrowed money from moneylenders who specialized in card debts. Most often, these were short-term loans that had to be repaid within 24 hours.
If the debtor did not repay the debt within the specified period, the doors of the gambling establishment were closed to him. Many gambling noblemen squandered huge fortunes and even lost their property due to card and other debts that arose due to their passion for gambling. A similar situation existed in the United States during the Wild West. Quite often, creditors (usurers) sat at the same gaming table with the victim. Interestingly, the money was often given as an interest-free loan, but the creditor could demand it back at any time. If the debts could not be repaid, the player simply had all his property taken away. Knowing the customs that reigned in the Wild West, it is not difficult to guess that many such cases ended in a shootout.
In the 20th century, a huge number of private lenders appeared. Famous mafia members such as Meyer Lansky, Morris Dalitz, Bugsy Siegel and others made huge amounts of money during the Prohibition. To increase their money, they lent it out, primarily to gamblers. Gambling, drug trafficking and loan sharking are the most profitable areas of business for US mafia clans.
Since gambling in the USA at the beginning of the 20th century was still prohibited, and Reno and Las Vegas were just backwaters, the mafia opened underground clubs, which were visited with pleasure not only by rich Americans, but also celebrities and even politicians. Naturally, among the visitors of illegal establishments there were many gamblers who constantly borrowed money to win back. The mafiosi were happy to lend money to such players, driving them into real bondage. Later, the debtors gave all their property and money to the mafia, and in some cases provided other services that were beneficial to the gangsters. Thus, gradually, corruption was formed, which many countries, including the USA, cannot get rid of even today.
The Rise of Usury
It is quite natural that no bank will give a loan at an acceptable interest rate for gambling in a casino. This is the case now, and it was the case during the mafia times. As a result, private lending became a very popular service. Ordinary members of the mafia took money from the clan's cash desk at 1% per week and gave loans to anyone who wanted it at 2-5% per week. It is known that trusted ordinary mafiosi could manage very large sums, up to 300 thousand dollars. This is very serious money for the beginning of the 20th century. The bosses demanded the return of debts at an agreed time, respectively, ordinary members "shaked" money from debtors, whom they subsidized. To have fewer problems, gangsters very carefully selected potential borrowers. The criteria were as follows:
- How often does the client play in the casino and how gambling is he?
- Does the potential debtor have valuable property (car, house, etc.)?
- Place of work. A very important point, because in the future, players who worked in government positions could be useful to the mafia.
The best outcome for both parties was the return of debts with interest. If it was impossible to return the money, the debtor was recruited by the mafia to provide various services (drug trafficking, etc.). Murder was an extreme measure and was used rather as a demonstrative measure to intimidate other debtors. Nowadays, usury is a rather rare occupation. It is criminally punishable in almost all countries of the world. The most famous case of private lending occurred in 2016 in the UK. Two usurers were caught and convicted. For every 1,000 pounds lent, they demanded 300 pounds back.
