Gatto acquired the operations of the late Genovese caporegime Peter LaPlaca of Bergen County in the 1970's, almost by default. Gatto first consolidated all bookmaking operations within his jurisdiction through violent means. His group steadily expanded to the point where it had to separate its lottery and sports betting activities into two operations. The group also had the shrewdness to set up New York locations to accept wagers so that, should an operative be arrested, New York's more lenient gambling statutes would insure shorter jail sentences.