This Oregonian article describes how predatory gambling interests, in an effort to stop the development of rival casino projects, highlight the truth about how casinos destroy families and raise the crime rate in the community.
Lowering the Standard of Living for Ordinary Citizens
From Rags to Riches to Rags
This article from the Tampa Tribune tells the story of Rhoda Toth, whose life was transformed by winning a $13 million lottery jackpot. She went from meeting Donald Trump and building a $92,000 swimming pool for herself to serving time in federal prison and living in a mobile home. Looking back at the day she won the lottery, Toth recalls: “It was my worst day.”
Jackpot Winners Just as Likely to Go Bust
This article from Yahoo! Finance explores the fact that for financially troubled consumers, the size of a lottery jackpot may not matter: Five years out, people who win $150,000 are just as likely to declare bankruptcy as those who win less than $10,000.
Casinos Hide Behind Public Relations Campaigns to Deflect Attention from the Addicts They Create and Exploit
Predatory gambling interests attempt to promote the perception they are concerned about the addicts they create and exploit for profit but the reality is they don’t have a business without them. Casinos commonly use tactics like those in the story below which describes the Seminole Tribe’s payment to “fight compulsive gambling.” Florida state government itself stands to collect an average of $240 million a year over five years from the casino, most of which will be coming from addicted citizens. How much did the casino tribe donate to help its victims? $1.75 million. Yet another reason why the most predatory business in the country is so profitable.
Portrait of Poverty in Oregon
Native Americans in Oregon have the state’s highest overall poverty rate, 29.4 percent. The report concludes that “given this high rate of poverty, it’s obvious that constructing gambling casinos hasn’t worked in bringing Oregon’s 40,700 Native Americans out of poverty.”
Gary Braden, executive director of the Native American Rehabilitation Association NW Inc. in Portland, said “The idea that the casinos have made all Native Americans rich is a myth.” The unemployment rate among members of the Confederated Tribes of the Umatilla Indian Reservation remains about 20 percent despite the tribe’s Wildhorse Casino, said Debra Crosswell, the tribal public affairs manager.
Montana Gambling Study Commission Report
This report prepared by the University of Montana’s Bureau of Business and Economic Research for Montana Gambling Study Commission found that gambling addicts account for 36% of video gambling revenues.
Montana Gambling Study Commission Report 1
Montana Gambling Study Commission Report 2
Montana Gambling Study Commission Report 3
Montana Gambling Study Commission Report 4
Montana Gambling Study Commission Report 5
Montana Gambling Study Commission Report 6
Texas Lottery Study Shows the Lottery Squeezing More Money Out of a Smaller Amount of People
This Texas Lottery Commission report finds that the percentage of Texans using the state’s lottery has plunged to one-third, the lowest level ever measured. The decline in fiscal 2010 — from 41.7 percent of residents to 33.8 percent — represents the second-largest year-to-year decrease since the Texas Lottery started in 1993. Yet despite this massive drop, the total amount of money spent on Texas Lottery tickets has held steady, which means a smaller amount of people are spending a lot more on tickets. It explains why Texas sells a $50 scratch ticket.
Low Income Citizens Lose Higher Percentage of Money on Lotteries
This 2008 study from the Journal of Risk and Uncertainty highlights the fact that the lottery appeals to people earning lower incomes and that these individuals spend a disproportionate amount of money on the lottery when compared to people with higher incomes. Additionally, the results suggest that the combination of myopic decision making and the “peanuts effect” – greater risk seeking for low stakes rather than high stakes gambles – can help explain the popularity of state lotteries.
Myopic Risk-seeking – The Impact of Narrow Decision Bracketing on Lottery Play
New Hampshire Study Finds Proposed Casino Would Take Away Local Jobs and Lead to Higher Taxes for All
An independent New Hampshire Gambling Commission study found that bringing one casino to the state would take away seven existing local jobs for every 10 casino jobs created – yet another example how predatory gambling operators willfully exaggerate the lure of jobs to mislead public opinion. The same report showed one casino would raise $219 million in state revenue but the total social cost would be $287.7 million: a net drain of $68.7 million. Who do you think pays that tab?
Natasha Schull writes about the design and technology behind electronic gambling machines in Washington Post
MIT Professor Natasha Schull writes about the design and technology behind electronic gambling machines in this must-read Washington Post essay.