SPG Research Center
Casinos and state lotteries are the most predatory business in America and their windfall is coming at your expense.
Most Recently Added Posts
Schools’ slices of lottery pie small, getting smaller in Oklahoma
With more than 500 Oklahoma school districts vying for their cut of the funds and only 35 percent of gross proceeds going to education, the lottery pie gets sliced hundreds of different times before an individual school district sees its portion. The result: The amount in lottery funds sent to individual school districts in Oklahoma has been relatively small. Read below to learn more how the Oklahoma Lottery has (not surprisingly) failed to fund education in the way proponents had promised citizens.
Schools’ slice of lottery pie small, getting smaller
Near Misses Are Like Winning to Problem Gamblers
The brains of problem gamblers react more intensely to near misses than casual gamblers, new research from the University of Cambridge has found. The results help explain what keeps problem gamblers betting even though they keep losing.
Near Misses are like Winning to Problem Gamblers
Emerging Issues in the Use of “Free Play”
Non-negotiable slot credits, or what is commonly called “free play” has become the primary form of customer incentives in casinos. Today’s casinos use mail, phone and email solicitations to offer free slot machine play to lure citizens who have rarely been to a casino before, a tactic adopted from the tobacco companies who used to hand out free cigarettes in low-income neighborhoods. This article attempts to identify the emerging issues of free play and how they are impacting the frequency of play and casino profitability.
Emerging Issues with Free Play
2012 Bloomberg News “The Sucker Index”
Bloomberg News ranked U.S. states by what it called “The Sucker Index” using 2010 data from the US Census and annual reports from state lottery commissions. The total dollar amount of prizes awarded was subtracted from ticket sales, and then the difference was divided by the total personal income of each state’s residents.
CASINOS AND FLORIDA: Crime and Prison Costs
This 2012 report authored by Richard Herring and David Beggs analyzes the inextricable link between casinos and crime in surrounding counties. Based on the introduction of casinos into Miami-Dade County, a conservative estimate projects a $3 billion dollar impact on just the state prison system over a 10-year period.
2012 Casinos and Crime in Florida Report
The $50 Ticket: A Lottery Boon Raises Concern
This New York Times story spotlights how state lotteries are luring citizens to lose more money at a faster clip by offering higher priced scratch-off tickets. Once only a $1, not states like Texas are selling $50 scratch tickets.
2007 The $50 Ticket- A Lottery Boon Raises Concern
Michigan lottery winner squandered $850,000
Midland, Michigan attorney John Wilson said his lottery-winning client Leroy N. Fick took about a year to blow through $850,000. At Fick’s sentencing on a felony charge of illegal possession of prescription painkiller in Isabella County, Wilson said Fick lives on a fixed income of $1,100 despite having won nearly $2 million in the state’s Make Me Rich! lottery in June 2010. After taxes, Fick received a lump sum of about $850,000. Fick spent $200,000 on the construction of a new home and about $200,000 in annuities, Wilson said. The majority of the remainder was lost in ill-advised investments suggested by Fick’s friends and relatives and fireworks. In 2011 Fick was charged in Bay County with three misdemeanor counts of possession of illegal fireworks. Isabella County Trial Judge Mark H. Duthie sentenced Fick to 45 days in jail.
Michigan lottery winner squandered $850,000
Australian Government Study Shows Predatory Gambling Costing Citizens $4.5 Billion Dollars Per Year, the Bulk of Costs Deriving from Video Slot Machines
According to the 2010 Australian Productivity Commission report (their government’s independent research and advisory body) which provides an in-depth analysis of the effects of the predatory gambling business on the nation, predatory gambling now costs Australian society about $4.5 billion dollars per year – the bulk of costs deriving from video slot machines. These costs exceed benefits when “excess” losses by problem gamblers is included. Cost per year per adult translates to $210. $1 U.S. dollar = $1.08 in Australian dollars as of Oct 23, 2009. You can find a longer summary of the report’s findings in the Profits from Gambling Addicts section.
Australia’s Gambling Industries 2010 Report Vol. 1
Australia’s Gambling Industries 2010 Report Vol. 2