In the early years of the 20th century, there was a famous (illegal) lottery, run by black people in Harlem, NYC. It was called “policy”-probably because the guys who sold the tickets resembled the life insurance agents of the day, who collected dime premiums from policy holders. These lotteries were enormously profitable-you got 1000:1 offs (numbers drawn were 0-999), but pupular numbers (like 777) paid less. These “Black Lotteries” went by varoious names -most of them very insulting-but they made so much money that they attracted the mafia-who muscled the black runners out of the business.
Now, most states have lotteries and scratch tickets-but do these illegal lotteries survive in certain cities? How do yo find a runner? 
When I used to work for a popular downtown Nashville department store, a lot of people play “the numbers”. You picked your numbers and paid your fee and the older black janitor came around and collected the money, and probably brought your winnings, if there were winnings. I didn’t play, but it was an open secret known by pretty much all the regular employees. This was about 20 years ago.
StG
The numbers rackets are still alive and well. Here’s an example from 2004 reported in the New York Times.
You’ll note that while the odds of correctly picking a random three digit number are 1000:1 against, the payoff is 600:1, so 60% of the monies bet are returned to gamblers.
The state lotteries generally return only 50% of the money bet to the gambler. No wonder the government’s down on the numbers racket, I would be too.
Just a note that the numbers games were not just a Black phenomenon: they were popular throughout all ethnic groups.
Just a note that the numbers games were not just a Black phenomenon: they were popularwith all ethnic groups.
I came in to say my non-black Grandparents in Washington, D.C. in the 19- teens, 20’s and 30’s used to “play the numbers” & had colorful stories about this.
There was an “unsolved” muder in my town that everyone knows was tied to a “black lottery.”
I don’t think it’s quite the same, but now and then the Indianapolis police bust a “pea shake house.” It seems to be small scale numbers racket, seldom found outside black neighborhoods.
Pea Shake House?
There is a great Mafia story I will repeat with no cite.
The N*gger Penny game was looked down upon by traditional mob guys, but grew to a point where they wanted in. They got their in when that baseball player was killed taking earthquake relief supplies to Central America. The papers all printed a photo of the crash and everyone bet the registration number. Then it came in.
The local bookies could not pay all the winners and were forced to sell their books to the Big Guys.