The locations were nondescript: unmarked buildings in impoverished Philadelphia neighborhoods, sometimes containing little more than a table, some folding chairs, and a coffee pot.
But behind the unremarkable facades, prosecutors alleged Friday, was an extensive and intricate network of illegal street lotteries, 40 places where people could place small-change bets — with the profits allegedly helping the ring's boss, Gary Creagh, buy luxury cars and lavish apartments from New York City to Las Vegas to Miami.
Creagh, 66, was one of nine people charged in the alleged conspiracy, District Attorney Kelley Hodge said at a news conference. She called the long-running numbers racket "truly a family affair," because Creagh's son, daughter, and nephew were charged alongside him.
Court records did not list an attorney for Creagh, who faces counts including corrupt organization and conspiracy. Someone who answered a call to a cellphone number listed for him quickly hung up Friday afternoon.
Sgt. Jerry Rocks said Creagh's operation had managed to stymie previous investigations for decades, largely because Creagh had insulated himself with a layer of subordinates.
Deputy Commissioner Dennis Wilson said the case "was really a thorn in the side" of law enforcement.
Authorities were circumspect about what broke the case open. But the long-running scheme, according to prosecutors, worked like this:
Two employees typically manned the betting locations, mostly unmarked buildings in neighborhoods ranging from Point Breeze to North Philadelphia. As in the state's lottery system, bettors would place wagers on whether certain numbers would be selected. But in the illegal lottery, bets could range from 10 cents to $20, and winners would earn a tax-free 700-1 return, as opposed to the 500-1 yield from the state's lottery system.
Daily revenues at some locations ranged from $200 to $1,500 per day, six days a week. One location, on the 5800 block of Kemble Avenue in East Germantown, raked in at least $14,000 in revenue per month.
Prosecutors said Creagh, who owned an $850,000 house in Moorestown, also owned a $1.5 million property in New York City, a $1 million property in Las Vegas, and at least $3.25 million worth of property in Miami. Between 2011 and 2014, prosecutors said, Creagh deposited more than $3 million into his personal bank accounts, $490,000 of which was in small amounts of cash.
Assistant District Attorney Raymond Driscoll said he believed the windfall came straight from Creagh's sophisticated gambling racket.
"I'm unaware of any legitimate income Mr. Creigh had," Driscoll said.
Creigh's bail was set at $250,000 unsecured, according to court records. His next court appearance, a pretrial conference, was scheduled for next week.
He paid 700-1 and he's a criminal? PA Lotto is the real criminal.
Spot on! 500 for 1 is lousy (50% payback). PA Lottery can do better. Instant games average 60%-70% payback, so there's room to pay Pick-3 players more while still meeting funding obligations. There are at least a few lotteries that pay 600 for 1, so it can be done.
We can only hope...
Anybody ever play the "numbers"? How does it work? Do different cities have similar odds? I always heard that the odds were better for those games and bookies. Then again, you/they are not paying taxes. Do they ever bust players? Or just the people running the games?
When you have the Government as a competitor you will lose. Did he pay his taxes?
They have these all over south Florida. It’s tied to the Caribbean as well
So, who sells them? Corner stores? Street vendors?
Google "how do numbers games work" for a history lesson on it.
Yes corner stores vendors barbershops beauty salons/supply stores pretty much anywhere imaginable. I play there instead of the state since they pay more. South FL pays 800-1
Government doesn't want competition.
The point breeze section is right off of 76. Not a great neighborhood area as I have a candy machine in an establishment somewhere east of those neighborhoods. Appreciate the story todd.
My question is, what do they base the winning numbers on these days? When I was growing up in NJ, it was based on the payout for win, place or show for one of the horse races at Belmont Park or Aquaduct Raceway. I remember going with my father to a bar/pizza place to pick up a pie around the corner from our house. While I was sipping on a birch beer soda, my father would write on a slip of paper and hand it back to the guy who owned the place with a dollar. It was always just something every working man did back then, and continued even after NY opened the OTB.
You are right about the state lotteries and it is a lot worse for their jackpot kind of games, it is bad for all games.
It is bad for all the games, players don't have a chance, but nobody is forcing people to play, no wonder that some many people play the streets numbers games and also daily games elsewhere, 600, 700, 800 and 900 to 1 are of course a lot better than 500 to 1 and imagine a cash 5 game that pays a jackpot of about $15,000 or less:
Who is the crook?
Cash Five Winning Numbers for 10/20/2017 are:
To OneTrickpony- Presumably, based on the PA Lottery numbers drawn. Keeps it simple, and provides much assurance the results are fair.
Overall, far as lotteries go, PA Lottery is among the better ones. While not getting my hopes up, it wouldn't surprise me if they eventually raise the Pick-X payouts. Likely not directly, but through various add-ons, such as Wildball, which improves overall payback to 55%. Lotteries have to grow revenue while protecting their margins. Add-on upselling is a way to do that. Not ideal, but better than nothing. Increases cost of wagering, but the payouts, for those who can afford it, are better to some degree.
Many lotteries, including PA, are constrained by regulations that stipulate a profit threshold percentage for funding obligations (ie. senior programs, schools, etc). PA Lottery has pushed and been granted a lower limit, which has allowed for better game odds and payouts, in particular, for instant games. Not a huge difference, but is noticeable to frequent players.
As your example illustrates, jackpot games can be even worse than Pick-X games. Sometimes much worse. Given the odds for that game, a base jackpot of $50K-$75K would be more reasonable. Presumably, the issue with TX Lottery Cash-5 is lack of play. Larger the player pool, often better the base jackpot can be. Some lotteries actually mention and explain this to players.
Another reason, in particular to the example you posted, is prize distribution can greatly reduce jackpot size. Eliminating the $2 4th prize alone would likely boost the jackpot by $5K-$10K. And much more than that as play increased, as the jackpot rolled. However, for that game, it's a roll-down type game so no roll-overs. No wonder sales are terrible leading to jackpots that are a joke. Instead of playing 1 in 435,897 odds for that, one might as well plop down $3 on a Pick-4 number to win roughly the same amount ($15K) with a 43 times better chance. Even adjusting for the wager difference ($3 verses $1), Pick-4 is still far easier to win.
Para-mutuel lottery games can be even worse for players as one can often see from the sub-par payouts in New Jersey and California. For Pick-X games, for the casual player waging a few dollars or less, para-mutuel can sometimes work out better. However, winning anything substantial is a challenge, since the more one wagers, lower the payout becomes.
One sees that with highly wagered numbers, such as 111, though it can be any number. In NJ Pick-3, 769 Oct-17 Evening paid out $129.50 per 50 cents wagered. Even more bizarre is that the Fireball add-on can sometimes pay as much, and even occasionally more, than a straight. In that same draw, it paid $112.50 despite the far better odds (1 in 333 verses 1 in 1000).
Rambling on, but this relates to California Mega Millions and Powerball Match-5 payouts, which are often far below the $1 million fixed payout of other states. In my view, California intentionally allocates a disproportionate amount to lower prize tiers. While it's technically the same amount of money being paid out, many players don't cash in small dollar winners. While those who do often just put it towards more play...
A good analogy are instant games that feature Free Ticket prizes. Sure, in theory it's the same, but not really. Win $5 cash on a $5 ticket, one can walk away. But win a $5 free ticket, one is relegated to playing again. The effective payout is reduced as well due to the house margin of 30%-40%. To put it another way, $5 cash prize is $5 while a $5 free ticket is worth roughly about $3.50. In essence, the lottery has already locked in additional profit despite paying out a win.
All in all, it's no wonder many turn to the numbers rackets for better payouts and easier cashing. Many official lottery retailers struggle to payout over $100. It's appalling. So willing to accept player's money, but can't payout. But I digress. On the bright side, as casinos, especially on-line, expand their presence, lotteries will be forced to compete more aggressively, and improve their games and payouts.