Very few people gambled illegally. Putting some gangster out of business (Lol if you actually believe that) at the cost of addicting the entire working class to throwing away their money is bad math!
Illegal gambling has been rife for a very long time - the bookie down the pub taking bets on horses, games, whatever
Add to that that the Costigan Commission (1984) and the Fitzgerald Inquiry (1989) proved that illegal gambling was the foundational "river of gold" for organised crime in Australia.
But your original claim was 'very few gambled illegally' which the historical record contradicts.
The Costigan and Fitzgerald inquiries showed illegal gambling wasn't just widespread - the profits funded other organised crime including the heroin trade.
We can debate whether legalisation was net positive without rewriting that history.
> The race track, it appears, is a great meeting place for criminals. The
Costigan Royal Commission (Australia 1984), the Connor Inquiry (Victoria 1983), the Moffit Royal Commission (New South Wales 1974) and the Fitzgerald Inquiry (Queensland 1989) revealed that a vast network of SP bookmakers exists throughout Australia. They found the monetary flow in the industry huge, and as such has the potential to finance many other illegal activities.
> Mr Justice Moffit warned that there was evidence to indicate that SP syndicates were in contact with major heroin smugglers and domestic drug distributors (New South Wales 1974).
> Connor estimated that the annual turnover for SP bookmaking was $1800 million in New South Wales and $1000 million in Victoria. Connor has said of illegal
bookmaking:
>> Illegal bookmaking is a multimillion dollar industry run by people who can get up to forty or fifty telephones and who, if their telephones are closed
down, can get them in new premises a week later. Illegal bookmakers prosper, making millions of illegal dollars, simply because they do not pay income tax or betting taxes
(Victoria 1983a, vol. 2, ch. 14).[0]
McMillen, J. (1996). "Gambling Cultures: Studies in History and Interpretation."
This academic study explains that SP bookmaking was a "submerged" culture. It operated through "runners" in pubs and massive illegal telephone exchanges. If you weren't a "punter" or part of that specific working-class pub culture, the infrastructure was invisible by design to avoid police detection. (unfortunately I cannot link you to a direct copy - but https://www.taylorfrancis.com/books/edit/10.4324/97802039935... )
Dont be dense, we are talking about "very few" in the context of draft kings which prints more money in 1 week than black market gambling has in years. The turnover in legal sports gambling in america is over 100b a year, this is larger than the gdp of most countries.
Illegal gambling has been rife for a very long time - the bookie down the pub taking bets on horses, games, whatever
Add to that that the Costigan Commission (1984) and the Fitzgerald Inquiry (1989) proved that illegal gambling was the foundational "river of gold" for organised crime in Australia.