Despite the statewide ban on indoor smoking, state government in Kansas exempted casinos. Research indicates that a smoking ban would drive thousands of patrons away from Kansas casinos.
Lowering the Standard of Living for Ordinary Citizens
Queens Racino Draws Increased Police Attention
The development of The Aqueduct racino in South Ozone Park had citizens concerned of a spike in crime level due to its presence. Because of this underlying fear, cops have been centralized around the racino and as a result, surrounding areas have suffered due to a lack of protection.
The Casino Practice of Lending Money to Citizens Who Then Gamble It All Away
The casino business model is based on patrons who “chase” their losses which means people who continue gambling to try to get back the money they have already lost to the casino. Borrowing money to gamble is one of the most glaring warning signs of problem gambling. One way casinos exploit the mind set of those who chase their losses is by loaning money to gamblers who do not have the cash on hand to continue gambling at the casino. Below is an example of the predatory casinos loan process taken from the Harrah’s Metropolis (IL) Casino website on May 30, 2012.
Bloomberg News Releases “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. A higher resulting number indicates a greater propensity for “suckerdom.” Georgia, Massachusetts, New York, Michigan and South Carolina earned Top Five status.
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, now states like Texas are selling $50 scratch tickets.
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.
Economist Testifies On the Negative “Spillover” Effects of Predatory Gambling
Economist Loretta Fairchild testified at a hearing in the Nebraska legislature in October 2011 to express her findings that the costs of predatory gambling significantly outweigh any benefits. She also notes that gambling “is one of a very small number of consumer items that economics considers as ‘special cases,’ because almost all types of gambling do have significant ‘spillovers’ on to people who don’t provide the gambling or use it, and these spillovers are mainly negative, harmful ones, on to families, friends and other businesses.”
Testimony of Economist Loretta Fairchild to Nebraska Legislature
Nobel-Prize Winning Economist Paul Samuelson on Gambling
“There is a substantial economic case to be made against gambling…it involves simply the sterile transfers of money or goods between individuals, creating no new money or goods. Although it creates no output, gambling does nevertheless absorb time and resources. When pursued beyond the limits of recreation, where the main purpose after all is to “kill time,” gambling subtracts from the national income.”
From Economics, 6th edition, 1970
Atlantic City Sees Large Growth in Poverty
While predatory gambling operators around the nation are still selling the idea of “destination resorts,” it is important for citizens to consider how one of America’s most well-known destination resort is faring. The 2009 article below from the Press of Atlantic City reports that the “city’s population fell slightly to 34,769 in 2008, down from 35,770 in 2007 – but the percentage of families living in poverty grew to 24 percent from 19 percent in the same period.”
Government Study Reveals the Massive Cost of Problem Gambling
While government-sanctioned gambling is often trumpeted as a new source of revenue, a 2013 study shows shows the staggering cost of problem gambling. This national Australian report reveals that the social and economic cost of problem gambling could total up to $2.8 billion per year.