Congress’ Strategy For Slashing U.S. Gambling Activity Proves Problematic, Part II

1952-1968 Soon after two new federal taxes — the tax on wagers and the wagering occupational tax — went into effect in late 1951, problems with them arose. (See Part I for a description of and impetus behind the taxes.) First Complication to Arise The constitutionality of the occupational tax was called into question. In…

Congress’ Strategy For Slashing U.S. Gambling Activity Proves Problematic, Part I

1951 Gambling is the lifeblood of organized crime. This was U.S. Senator Estes Kefauver’s conclusion after the Special Committee on Organized Crime in Interstate Commerce, which he headed, concluded its investigation. The Kefauver Committee’s work, in part, involved conducting hearings in 14 U.S. cities, during which they grilled (sometimes, unsuccessfully) about 600 witnesses, including big-time…