Timothy C. May writes
Gambling is illegal in most places, unless run by the state. And yet people gamble, illegally. They use bookies. Bookies who are doing illegal things, as the gamblers are. And yet if they get stiffed by a bookie, which _sometimes_ happens, they tell their friends, family, etc., and the reputation ripples spread.
Taking Sandy's "For murder escrows, a positive reputation is meaningless. They can't--nor can anyone else--risk exposure of such negative information. Escrows that admittedly engage in abetting criminal acts can have NO MEANINGFUL REPUTATIONS." argument, are we to assume that this applies to illegal betting? That stiffed bettors won't speak up because there are "Escrows that admittedly engage in abetting criminal acts can have NO MEANINGFUL REPUTATIONS"?
Illegal betting is merely illegal. Murder is also immoral. This really does make a difference to reputations. For example if you have a criminal record for shoplifting a packet of cigarettes, most bosses will not hire you. But speeding or even drunk driving will not seriously affect your employment prospects. Similarly tax evasion convictions seem to have little effect on ones credit rating. ,