The Mafia and The Economy :- basketball, gas-tax and pizzerias.

 

By the late seventies, the Mafia was involved in numerous industries, including betting on college sports. Several Mafia members were involved in a point-shaving scandal involving Boston college basketball team. Rick Kuhn, Henry Hill and other members of the Lucchese family manipulated the results of the games from 1978-1979. Through bribing and extorting team members they were able to ensure their bets would go in their favour. 

 A popular gain and a lucrative one was the gas-tax. They kept the money they owed in taxes after the sale of millions of dollars worth of wholesale petroleum. This allowed them to sell gasoline at lower prices. Michael Franzese, also known as "Yuppie Dan" ran and organised a gas scandal and stole over $290 million in gasoline taxes by avoiding the IRS and shutting down the gas stations before the government officials could make him pay what he owed. He was caught in 1985.

 Labour racketeering helped the Mafia control many industries macroeconomically. This gave them power and influence in cities with large labour unions such as; New York, Philadelphia, Chicago and Detroit. It is good not to forget that La Cosa Nostra was a Mafia group that rose to power through heavy involvement in unions. 

 Restaurants were also popular with the Mafia. A large concentration owned restaurants in New York City. The settings often of important killings and meetings, they were an effective way of smuggling drugs and illegal goods. From 1985-1987, Sicilian mafioso also imported an estimated $1.6 billion of heroin through pizzerias, hiding in the cargo in food products.

Las Vegas Nevada opened "The Flamingo" just after WW2. Many credit the Mafia for funding the cities development in the mid-20th Century. This was due to the millions of dollars flowing through the casinos. This came from many Mafia families. Legitimate gambling profits help fund illegal activities from the 1950s to the 1980s. In the 1950s more Mafia owned Casinos were built: Stardust, Sahara, Tropicana, Desert Inn and the Riviera. Tourism grew in the 1960s and this boosted the economy further.