Focus

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.

Texas Lottery Demographics Report 2010

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Survey of the Nature and Extent of Gambling and Problem Gambling in the Australian Capital Territory

This study by Australian Institute for Gambling Research and the University of West Sydney reported that 48% of gambling machine revenue and 37% of all commercial gambling revenue was attributable to problem gamblers.

Survey of the Nature and Extent of Gambling and Problem Gambling in the Australian Capital Territory

CkirbySurvey of the Nature and Extent of Gambling and Problem Gambling in the Australian Capital Territory
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Costs and Treatment of Pathological Gambling

This study by Henry Lesieur from the Annals of the American Academy of Political and Social Sciences found that pathological and problem gamblers account for an average of 30.4 percent of total gambling expenditures in the four U.S. states and three Canadian provinces he examined (the low was 22.6 percent, the high was 41.2 percent in Louisiana). The study identified which games were associated with problematic play and identified “video machines” (as opposed to old-style slots) in that group. Lesieur concluded: “When a state decides to shift from lotto to instant or scratch lottery tickets to video machines as a revenue-raising measure, it is taking a greater and greater percentage of money from problem gamblers.”

Costs and Treatment of Pathological Gambling

CkirbyCosts and Treatment of Pathological Gambling
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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

CkirbyLow Income Citizens Lose Higher Percentage of Money on Lotteries
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The Impact of Casinos on Fatal Alcohol-Related Traffic Accidents in the United States

This is a 2010 study from The Journal of Health Economics which investigates the impact of casinos on alcohol-related automobile accidents. Gamblers often drink excessive alcohol while gambling and casinos often provide free alcohol to problem gamblers. The results of the study indicate that there is a strong link between the presence of a casino in a county and the number of alcohol-related fatal traffic accidents.

The Impact of Casinos on Fatal Alcohol-Related Traffic Accidents

CkirbyThe Impact of Casinos on Fatal Alcohol-Related Traffic Accidents in the United States
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The Relationship Between Crime and Electronic Gambling Expenditures

Here is a study on the relationship between crime and electronic gambling expenditures in Victoria, Australia. It shows a consistent positive and significant relationship between gambling and crime rates, especially income-generating
crime rates, at the local level.

The Relationship Between Crime and Electronic Gambling Expenditures

CkirbyThe Relationship Between Crime and Electronic Gambling Expenditures
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Mayor Testifies Foxwoods Casino Has Not Brought Economic Benefits to Town

The former mayor of Ledyard, Connecticut, Wesley Johnson, testified his town has not seen any positive economic impact since the Foxwoods Casino was built there. “There has been no economic development spin-off from the casino. Businesses do not come here,” Johnson said.

CkirbyMayor Testifies Foxwoods Casino Has Not Brought Economic Benefits to Town
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Federal Reserve Study Finds Casinos Do Not Grow Local Economies

A 2006 study by the Federal Reserve Bank of Boston found that patrons who frequent casinos catering to local markets do not bring in any new money to the local economy and are simply substituting gambling for other goods and services. Nationwide the overwhelming majority of casinos cater to locals.

Federal Reserve Bank of Boston Study 2006

CkirbyFederal Reserve Study Finds Casinos Do Not Grow Local Economies
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Caesars Riverboat Casino v. Kephart

In October 2010, the Indiana Supreme Court ruled against a woman who said an area casino preyed on her gambling addiction. Jenny Kephart filed a lawsuit against Caesars Indiana in 2007 after the casino sued her to recover $125,000 that she lost in a single night of gambling in the year before. The casino is now Horseshoe Southern Indiana.

Kephart said the casino enticed her to gamble with free meals and rooms as well as money on credit. The casino even sent a car to drive her from her home in Tennessee to the Indiana casino.  Below are the legal briefs from Caesars Riverboat Casino v. Kephart.

Caesars Riverboat Casino v. Kephart – Appellant Brief

Caesars Riverboat Casino v. Kephart – Brief of Apellee

Caesars Riverboat Casino v. Kephart – Appellee’s Petition to Transfer

Caesars Riverboat Casino v. Kephart – Appellee’s Petition for Rehearing

Caesars Riverboat Casino v. Kephart – Appellee’s Petition to Transfer Reply Brief

Caesars Riverboat Casino v. Kephart – Appellant’s Brief of Response to Petition to Transfer

Caesars Riverboat Casino v. Kephart – Reply Brief of Appellant

LesCaesars Riverboat Casino v. Kephart
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Report finds that 60% of gambling machine revenue was derived from problem gamblers

This report prepared for the Ontario Problem Gambling Research Centre found that 60% of machine revenue was derived from problem gamblers and that 35% of total gambling revenue was derived from moderate and severe problem gamblers.

The Demographic Sources of Ontario Gambling Revenue

CkirbyReport finds that 60% of gambling machine revenue was derived from problem gamblers
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