Criminal involvement in legalized gambling can be organized or not; its result is to direct illicit profits away from legitimate recipients. Another type of crime is the use of gaming establishments to facilitate criminal activities not related to gambling, including money laundering. A case study of gambling in New Jersey, even accounting for differences between the U.S. and Canada, is used to illustrate the vulnerability of the industry to systematic criminal activity, political corruption, and fraudulence. Nevertheless, governments in the U.S., England, Australia, and Canada have justified the expansion of legalized gambling on grounds of new tax revenue, employment opportunities, tourism, and the curtailment of illegal gambling. In Canada, legalized gambling provides much of the revenue for many charitable organizations and provincial governments have come to depend on its revenue as well; unlike the U.S., considerable government involvement is required by law in operating gambling activities. Recommendations for creating an adequate law enforcement regime focus on preventing corruption of public officials, screening industry personnel, maintaining accurate records and accountability, and policing gambling events. 17 references