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Big Business of Illegal Gambling

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Big Business of Illegal Gambling

Pregame's founder R.J. Bell estimates $10 billion are wagered on the Superbowl alone every year, and $12 billion is put down on the NCAA men's basketball tournament. Pregame.com, a sports betting information site, estimates that for every $100 bet on sports, $99 are wagered illegally.

"We believe that 1 percent of the action or so is in Nevada, which is strictly legal based upon the United States laws," Bell says. "And we believe that it's about 50-50 after that between online sports books and what we call the bar-room bookies — the guy down the street who's taking the bets."