The Dec. 28, 1906 NYT reports on a series of gambling raids throughout Manhattan. A police captain reports that two groups of people are "pleased with the raids." The first is comprised of proprietors who have not been raided, as their competition is being removed by the police. The second is the group who make gambling equipment:

Well, the men who manufacturer the gambling paraphernalia are keeping their shops working night and day. That stuff, the roulette tables, poker chips, and all the other devices used in a first-class gambling house, you know, isn't cheap, and there's big profit in it. The more smashing and burning the police do, so much better for the trade, which is in a few hands.

In a partial eqiulibrium sense, the exogenous actions of the police probably did increase the profits of the gambling equipment manufacturer, at least in the short run. This is similar to what happens in today's "wars" on vice. Whether social welfare increased in 1906 or increases in 2006 by preventing people from doing what they want is difficult to determine.