Policy racket

The numbers game, also known as the numbers racket, the policy racket, the Italian lottery, the policy game, or the daily number is an illegal lottery played mostly in poor neighborhoods in the United States, wherein a bettor attempts to pick three digits to match those that will be randomly drawn the following day. In recent years, the "number" would be the last three digits of "the handle", the amount race track bettors placed on race day at a major racetrack, published in racing journals and major newspapers in New York. A gambler places a bet with a bookie at a tavern or other semi-private place that acts as a betting parlor.

A runner carries the money and betting slips between the betting parlors and the headquarters, called a numbers bank or policy bank. The name "policy" is from a similarity to cheap insurance, both seen as a gamble on the future.

"Policy shops," where bettors choose numbers, were in the United States prior to 1860. In 1875, a report of a select committee of the New York State Assembly stated that "the lowest, meanest, worst form ... [that] gambling takes in the city of New York, is what is known as policy playing." It flourished in Black communities across the country. It was also played in Irish-American, and Jewish-American communities. It was known in Cuban-American communities as bolita ("little ball").

By the early 20th century, the game was associated with poor communities and could be played for as little as a penny. One of the game's attractions to low-income and working-class bettors was the ability to bet small amounts of money. Also, unlike state lotteries, bookies could extend credit to the bettor. Policy winners could avoid paying income tax. Different policy banks would offer different rates, though a payoff of 600 to 1 was typical. Since the odds of winning were 999:1 against, the expected profit for racketeers was enormous.

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