In 1951, Congress enacted the Transportation of Gambling Devices Act. The Act, more commonly known as the Johnson Act, has been amended several times during the intervening years. Most notably, the Act makes it unlawful to knowingly transport a gambling device to a state where such a device is prohibited by law.
Government’s Monopoly of Commercialized Gambling
Yale Law School’s Stephen Carter wrote a terrific column in April 2011 on state lotteries. Carter writes: “Why on earth do we allow the government to hold a monopoly on the very profitable (if rather disgusting) business of persuading the suffering to part with their money in the hope of a munificent return they are all but certain never to see? In other words, why is the government in the lottery business at all?”
The state lottery has been a spectacular failure and more and more intelligent thinkers like Carter are speaking the truth about it.
Foxwoods Casino Targets Repeat Gamblers
We know from Wall Street Journal reporter Christina Binkley that casinos make 90% of their profits from 10% of their customers. So, it’s no surprise that Connecticut’s Foxwoods Casino has developed a new business strategy to entice it’s “loyal” customers to gamble more of their money away, particularly those “customers living within 90 minutes of the…property.”
The Link Between Crime and Gambling Addiction
This article from the Pittsburgh Tribune-Review explores the connection between gambling addiction and criminal activity. Because gamblers are allowed to lose such large sums of money in such a short period of time, some turn to stealing to help fuel their addiction and chase their losses. Generally, these are law-abiding citizens who would otherwise never commit crimes.
Australia Attempting to End Electronic Gambling Machine Tricks
Australia Senator Nick Xenophon is trying to stop certain features of electronic gambling machines (or “pokies” as they are known in that country) that trick players into thinking they have won, when they really have lost. Senator Xenophon is also requesting that the industry release machine probability accounting reports.
Problem Gamblers Can’t Judge the Cost of Electronic Gambling Machines
According to the Australian Productivity Commission, people often underestimate how much people spend on various items, like transportation, clothing, etc. “For gambling, if we say we have spent $100, on average we have really spent $735. Then there are the pokies [electronic gambling machines]. On average, if pokie players say they have spent $100, they have actually spent $3448. That’s not a misprint: they are apparently aware of just 2.9 per cent of what they are losing.” Would receipts or a record of spending help people become more aware of how much they spend? Absolutely.
Problem Gamblers Can’t Judge Cost of Electronic Gambling Machines
Kefauver Committee, Gambling, and Organized Crime
In 1950 and 1951, Senator Estes Kefauver chaired the U.S. Senate’s Special Committee to Investigate Organized Crime in Interstate Commerce and discovered vast corruption and crime rings involving gambling and narcotics throughout the United States. The committee became popularly known as the Kefauver Committee.
National Gambling Impact Study Commission Report
In June 1999, the National Gambling Impact Study Commission concluded its two-year exploration into the social and economic impact of legalized gambling in the United States. In fulfillment of their responsibilities, the Commission submitted a detailed report of their findings to the President, Congress, Governors, and tribal leaders. Please read the contents of the report below.
Chapter 1 Overview – The expansion of legalized gambling; impact and controversy (a moving target), the role of government (no master plan); the lack of information (time for a pause).
Chapter 2 Gambling in the United States – Lotteries (growth of lotteries, types of lottery games, the contradictory role of state governments); convenience gambling and stand-alone electronic gambling devices (issues); casinos; riverboat casinos; Native American tribal gambling; pari-mutuel wagering (the horse-racing industry, the greyhound industry, jai alai, issues, egd’s and the pari-mutuel industry, simulcasting and account wagering); sports wagering (issues); internet.
Chapter 3 Gambling Regulation – Governments set the rules; gambling and the public interest; regulating gambling (the federal role); the state role (lotteries); The administrative structure of casinos and pari-mutuel gambling; sports wagering; convenience gambling and stand-alone electronic gambling devices; advertising (supporting a restriction of advertising, the foundation for the ban: the Federal Communications Act, is the ban an indirect gambling regulation?; This chapter looks at gambling in New Orleans; general guidelines; underage guidelines.
Chapter 4 Problem and Pathological Gambling – The research (risk factors for problem and pathological gambling); estimating the prevalence (the commission’s research findings); characteristics of pathological gamblers; under-age problem gambling; the costs of problem gamblers (the costs to problem and pathological gamblers, the costs to society); treating the problem (private sector efforts, casino questionnaire, non-profit and other efforts, government response); conclusion; recommendations.
Chapter 5 Internet Gambling – The emergence of internet gambling; types of internet gambling sites; candidates for prohibition (youth gambling, pathological gamblers, criminal use); state of the law: the applicability of 18 U.S.C. § 1084; regulation or prohibition (state efforts, Native American internet gambling); an enhanced federal role at state request (federal efforts); obstacles to regulation; recommendations.
Chapter 6 Native American Tribal Gambling – Growth of tribal gambling; tribal sovereignty and Indian gambling (federal policy: failure of the “trust responsibility” and alternative revenue source to Indian gambling, the move toward self-determination, review of regulations, state criticism if IGRA, mechanism for handling impasse between tribes and states, other mechanisms); local community impacts; economic development; employment laws and Indian tribal governments; other issues for consideration (taxation, exclusivity payments, off-reservation gambling); recommendations.
Chapter 7 Gambling’s Impacts on People and Places – Determining the impact of gambling; growth and employment (pari-mutuel, Native American tribal government gambling, other gambling industries); a careful look at economic benefits (crime, financial and credit issues, other economic impacts, local effects); the social impact of gambling (problem and pathological gambling, adolescent gambling, responding to adolescent gambling, suicide, divorce, homelessness, abuse and neglect, local effects); conclusion; recommendations.
Chapter 8 Future Research Recommendations
Appendix 1 Commission Member’s Statements
Appendix 2 Commission Members
Appendix 3 Acknowledgments
Appendix 4 National Gambling Impact Study Commission Act
Appendix 5 List of References
Appendix 6 Sources of Information and Resources on Gambling
Appendix 7 Glossary
Appendix 8 Catalog of Gambling Laws, Regulations, and Ordinances
Casinos Will Lead to Net Job Loss in Ohio
In the fall of 2009, Ohio voters were faced with a referendum to allow casino gambling in the state. Prior to the election, the Public Policy Analysis Group at Hiram College studied the social and economic effects that this form of predatory gambling would bring to the state. These researchers discovered that there would be a net loss of area jobs in the new casino locations. This would be due to the significant loss of non-casino jobs in these areas. Further, the policy analysts characterized the industry’s claim of creating 34,000 new jobs as “misleading.”
Report on Ohio Gaming Initiative – Statewide Economic and Social Factors
The Effects of Predatory Gambling in Maryland
This May 2011 report from the University of Maryland, Baltimore County studied how Maryland residents have been affected by the many forms of predatory gambling now available in the state including slots, the lottery, and horse racing. The most significant finding was that individuals in the 18 to 29 age group appear most at risk of developing gambling problems. In addition, researchers found that “being male, single, African-American or other races (primarily Hispanic) are associated with an increase in the odds of being at risk for problem/pathological gambling. Most problem/pathological gamblers travel 6 to 15 miles to gamble, typically spend over 6 hours gambling during a single session, and generally gamble with others not related to them.”