History of Casinos in the USSR: Influence of Crime and Shadow Economy

After the establishment of Soviet power, the approach to gambling changed radically. The authorities sought to eradicate bourgeois habits, along with private gambling establishments. Officially, gambling in the USSR was declared a relic of the past, but interest in bets did not disappear. The ban pushed the formation of underground structures, which effectively became precursors to future criminal business.

In major cities, especially in Moscow and Sochi, closed clubs began to appear, accessible only to approved individuals. Under the control of criminal groups, catrans were created, offering card games, roulette, and poker. Formally, everything was hidden, but it was precisely this era that laid the foundation without which the history of casinos in the USSR would look incomplete.

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Shadow economy in the USSR and criminal interest in the history of casinos

Soviet legislation strictly limited financial transactions, making illegal bets particularly profitable. The shadow economy developed rapidly, and the underground first casinos in the USSR became a tool for laundering capital. Criminal structures controlled large money flows, earning income from both bets and debts of participants.

Over time, their own rules of behavior, personal bodyguards, and even their own dealers were developed. Financial manipulations, hidden interest rates, and the use of counterfeit chips turned the underground business into a well-oiled mechanism. All of this made the criminal influence in the history of casinos in the USSR obvious and inevitable.

Main schemes of underground clubs

The variety of methods used by catran owners and their patrons demonstrates the complexity of the structure of the shadow gambling market. The most common schemes were:

  • organizing private card evenings for the party elite, where bets reached enormous sums;
  • using fake documents and fictitious names to cover their activities;
  • issuing loans with interest, making players dependent on criminal authorities;
  • transferring part of the profits to law enforcement agencies for protection of establishments;
  • employing cardsharps to create controlled game outcomes.

Regardless of the specific scheme, each of them showed how deeply the shadow economy penetrated the gambling business in the USSR and how a parallel financial system was formed.

“Sportloto” as a counterbalance to the underground

Recognizing the growing popularity of illegal bets, the state decided to create a controlled alternative. In the 1970s, the “Sportloto” project appeared, officially considered a tool to support mass sports. Lotteries quickly became popular as they provided a chance to win in a legal format.

However, even “Sportloto” could not completely replace underground clubs. Part of the population preferred private catrans, where bets and payouts were significantly higher. Thus, the history of casinos in the USSR reflects the constant confrontation between state control and the shadow economy.

Sochi’s Role in the Underground Gambling Business

Sochi held a special place, already considered the resort capital of the country. Party officials, athletes, diplomats, and foreign guests came here. This influx ensured high demand for closed clubs, attracting criminal attention.

Underground gambling in the USSR was organized particularly carefully here. In some hotels, separate rooms were created for selected guests. Players placed significant amounts on poker, roulette, and card combinations, while “lookouts” ensured the security of deals. Sochi’s influence on the underground market is an important part of how the history of casinos in the USSR developed in the last decades of the Soviet era.

Methods of Criminal Control

To understand the scale of the shadow economy, it is important to consider the main mechanisms used by criminal groups:

  • attracting experienced dealers and cardsharps to manipulate game outcomes;
  • using “black funds” to distribute profits within the groups;
  • control over debtors and organizing field trips to collect debts;
  • building relationships with party structures and law enforcement officers;
  • creating a network of trusted intermediaries to ensure safe money circulation.

These methods formed a unique model of managing underground casinos, directly influencing the economy and power balance within the country. Without studying these practices, the history of casinos in the USSR would be incomplete.

Catrans and Underground Centers of Influence

Catrans became a crucial part of the shadow gambling world. Their organization required closed premises, reliable security, and verified clients. Access was granted through personal recommendations, creating an atmosphere of exclusivity. Card games were played, bets were made in cash, and dealers often worked under the control of criminal authorities.

Such establishments concentrated large financial flows and established their own informal laws. As a result, the history of casinos in the USSR acquired another layer — the underground business became a parallel economy capable of influencing state structures through bribery and mutual agreements.

Party Elite and Double Standards

In official rhetoric, party organs sharply condemned gambling in the USSR, but the reality was different. Closed evenings were organized for high-ranking officials, where the first casinos in the USSR operated in an elite format. In such clubs, bets could reach enormous sums, and participation was often accompanied by informal agreements.

Party functionaries used their power to protect such events, and their influence ensured the safety of the organizers. The contradiction between public policy and hidden practices exacerbated the rift between society and the authorities, ultimately giving the history of casinos in the USSR a complex and multi-layered character.

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Conclusion

Despite strict prohibitions, the underground business acquired a legendary aura. Stories circulated around catrans about big wins, lost fortunes, and risky bets. Paradoxically, the romanticization of this image made illegal clubs even more attractive.

By the mid-1980s, interest in gambling reached its peak. People discussed secret parties, elite clubs, and high-profile losses, gradually paving the way for the future legalization of the gambling business in a new economic reality. Thus, the history of casinos in the USSR was closely intertwined not only with state control but also with the culture of shadow practices!

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