Focus

Investigating the Lottery’s “luckiest woman”

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This 3-part series, from Philly.com, examines the story of Joan Ginther, a woman from Texas who won millions off of scratch tickets over several years. Her story captured headlines worldwide when she won $10 million on a single scratch ticket in June 2010. Mathematicians estimated the odds of someone winning as much as Ginther has at 1 in 18,000,000,000,000,000,000,000,000, or 18 septillion. However, this series explains that with a little luck and patience, it might not be so difficult to cheat one of America’s biggest industries.

2014 Lottery’s ‘luckiest woman’ bet flabbergasting sums on scratch-offs

2014 How Lottery legend Joan Ginther likely used odds, Uncle Sam to win millions

2014 Lottery mystery yields clues to missing $7.5 million prize

LesInvestigating the Lottery’s “luckiest woman”
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20 years after casinos legalized in Missouri, former supporters admit they haven’t delivered on promises

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In 1994, when a measure legalizing casinos in Missouri became law, State Rep. Herbert Fallert was its biggest supporter. After all, it was his 1991 legislation that began the whole process. However, now, 20 years into the casino industry in Missouri, the disappointing results have Fallert wondering if it was really the right move after all. “I sponsored it to save tourism for the state of Missouri,” says Fallert. “It turned out to be more of a gaming thing. It kind of got away from us.” This stunning reversal comes on the heels of the industry’s disappointing results. Now, education officials, who previously heralded the adoption of casinos in the state as a great source of money for education, are asking that education funding no longer be tied to such an unstable source of revenue. This article from the St. Louis Post Dispatch details why former supporters have soured on the casino industry in Missouri.

2014 Missouri’s casino industry turns 20 today- Is it a winner?

Les20 years after casinos legalized in Missouri, former supporters admit they haven’t delivered on promises
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Massachusetts Lottery takes from poor to give to rich

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The Massachusetts Lottery is, what the author of this Boston Globe article calls, “a Robin Hood in reverse”. Like most lotteries, it generates the most profit from poorer communities, filled with impoverished people who feel the only way to get out of their dead-end situation is to get lucky on the lottery. However, these poor communities receive back in aid a fraction of what they put in through revenue, while richer towns enjoy much higher levels of aid than they contribute to the system.

2014 Lotteries — Robin Hood in reverse

LesMassachusetts Lottery takes from poor to give to rich
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Poorer Massachusetts communities receive disproportionately low aid from lottery

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20% of all Massachusetts lottery revenue goes to the state’s Unrestricted General Government Aid program, which then uses its own systems to determine which communities need the most help and doles out aid accordingly. The only problem is that the system used by the program is becoming more and more out of touch, and the program is now taking aid from the poorer communities to give to more affluent, well-off cities and towns. The poorer communities often give the most in lottery revenue, as the poorer a neighborhood is, generally the higher the lottery revenue, only to receive significantly less in aid than they give in profits. Meanwhile, more affluent towns give little in lottery revenue, but receive much larger amounts of aid. This Boston Globe story explains why the lottery’s most profitable towns aren’t receiving what they put in.

2014 Lottery often gives aid to affluent

LesPoorer Massachusetts communities receive disproportionately low aid from lottery
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Presence of casinos in Macau leads to major money laundering

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Macau, a city known for its many casinos and large gambling industry, is now attracting money laundering in rates much higher than the rest of the world. According to this article by the South China Morning Post, “The significance of… gaming in Macau drives the significance of money laundering in the local marketplace.” Big casino industry in cities offers an enticing opportunity for those looking to launder money, another example of crime that follows casinos.

2014 Money laundering huge in Macau

LesPresence of casinos in Macau leads to major money laundering
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Why adolescents are biologically more susceptible to problem gambling

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This study, from the Proceedings of the National Academy of Sciences, shows a biological breakdown of how adolescents’ brains make them more likely to be problem gamblers.  This is because the brain of an adolescent places a greater value on rewards than does that of an adult, a developmental effect that causes more adventurous risk-taking in adolescents, which can lead to problem gambling. This thorough study explains the science behind why kids shouldn’t gamble.

2014 Neural representation of expected value in the adolescent brain

LesWhy adolescents are biologically more susceptible to problem gambling
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Study spotlights the link between homelessness and problem gambling

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Researchers at the University of Cambridge in England have found that homeless people are ten times more likely to be problem gamblers than non-homeless people. While many studies have been done examining the link between homelessness and alcohol or drug usage, this is one of the first to consider how homelessness affects one’s propensity to have a gambling addiction. This article summarizes the study’s findings.

2014 New study reveals scale of problem gambling among homeless population

LesStudy spotlights the link between homelessness and problem gambling
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The rise of penny slots

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The name “penny slot” implies that these machines are essentially harmless- after all, what use is there for one penny? However, these machines, which are rapidly growing in popularity, garner huge profits for casinos at the expense of players. These machines attract mainly lower-income players, lured by the idea that one penny can net them some extra cash. Most “penny slots” actually require you pay more than 1 cent per play, with some requiring 25 or 50 cents, and others requiring bets of over $1. Players put more than $500 million into penny slots in January alone, and given the high profits they give to casino owners, casinos are starting to install more and more of them. This article, from the Press of Atlantic City shows how one penny can cost gamblers a lot more than you might think.

2014 Penny slots are popular, flexible and profitable

LesThe rise of penny slots
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80 years of slot machine trickery

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This article, dated December of 1932, over 80 years ago, explains how slot machines are built to make players lose, and it still remains true today.  It not only goes into detail as to how these machines mathematically cheat players out of their hard-earned cash, but it serves to show that these machines have been swindling players out of their money for generations.

Machines that Pick Your Pocket

Les80 years of slot machine trickery
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College students and problem gambling

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This study, made for the Iowa Department of Public Health, examined the relationship between college students and problem gambling. After using both qualitative and quantitative data, the study concluded that almost 70% of college students gambled in the past year, and about one in ten met at least DSM-IV criterion for potential problem or pathological gambling, a disturbing figure that presents real concerns for America’s future. Below is a copy of the study, which is detailed and informative, and sheds light on the future of American problem gambling.

2014 Pilot Study of Gambling Attitudes and Behaviors Among Iowa College Students

LesCollege students and problem gambling
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