Sport: A Scandal Grows in Brooklyn

On a good night, as much as two million dollars is bet on U.S. college basketball. In New York City alone, half a million—mostly in $50 to $500 bets—changes hands. A single Chicago betting spot handles about $100,000 worth of business a night.

Thanks to the basketball boom, hundreds of bookies (threatened with the necessity of working for their living after the racing ban) have gone on doing business at their old stands in Chicago, Kansas City, Providence, Boston, Minneapolis and points south & west. The cagey Minneapolis bookies will not touch a New...