Warren Buffett on Gambling – Transcript
Focus
Survey finds just 4% of gambling profits derived from casual gamblers
This study by the Nova Scotia Department of Health found that only 4% of net gambling machine (or so-called “video lottery”) revenue was derived from “casual” players, even though they comprise 75% of players. Meanwhile, 96% of the revenue was derived from under 6% of the population who were classified as “regular gamblers.” About 16% of these regular gamblers were “problem gamblers” and they alone generated 53% of machine revenues even though they make up under 1% of the total population.
Columbia School of Public Health declares gambling addiction as one of the biggest health issues in America
The Columbia University School of Public Health, one of America’s leading public health programs, published a national investigation into the massive public health impacts of government-sponsored casinos and lotteries. Led by Elaine Meyer, this must-share article spotlights how predatory gambling is harming millions of Americans and the communities they live in.
Newspaper series spotlights predatory and fraudulent business practices of Oregon Lottery
This must-read series from The Oregonian details the business practices of the Oregon Lottery. It represents one of the very best investigative journalism efforts into state lotteries ever done.
2013 Oregon Lottery- Revenues grow on the increase in video slots games
2013 Oregon Lottery- Agency pushes slot machines as problem gamblers pay the price
2013 Oregon Lottery- Games, like tobacco earlier, could face liability lawsuits
2013 Oregon Lottery- Reader stories of state-sponsored addiction (day 1)
US Treasury Report on Money Laundering Includes Spotlight on Casinos
This 2005 United States Treasury Report reveals how casinos are used by criminals to launder counterfeit money and large currency notes. “A constant threat at casinos is insiders taking advantage of their position either to steal or assist others with money laundering. ICE recently charged six people, including a tribal leader, with attempting to steal $900,000 from a Native American casino. Among the charges are conspiracy, theft, and money laundering.”
The Relationship Between State Lotteries and Government Assistance Payments
This paper examines United States lottery revenues and finds an increase in lottery activity during weeks in which transfer payments (i.e. Aid to Families with Dependent Children, Social Security, disability, etc.) are distributed. Revenues from state lotteries are also shown to increase during the week transfer payments are distributed. The timing of the increase in lottery purchases suggests a portion of the transfer payments is used to purchase lottery tickets.
Behind the Human Urge to Gamble
Frank “Lefty” Rosenthal, a legendary Las Vegas casino operator played by the actor Robert De Niro in the movie “Casino,” said this about gambling in a 1997 PBS Frontline interview: “I don’t agree with the premise or the concept it’s entertainment.”
Then why do human beings gamble? This study by Dr. John Nyman of the University of Minnesota School of Public Health finds that people gamble for two reasons: the possibility of getting something for nothing and the need to escape, which includes the human desire for an intense high or buzz.
2 Out of 5 Low-Income Americans Believe the Lottery is the Best Way to Build Wealth
According to the survey of 1,000 Americans by Opinion Research Corporation for the Consumer Federation of America and the Financial Planning Association, 21% of Americans believed that the lottery would be their most effective and practical strategy for accumulating several hundred thousand dollars. This percentage was higher among lower-income individuals, with 38% of those who earn less than $25,000 pointing to the lottery as a solution.
Survey- 21 percent say lottery is most practical path to wealth
Study finds strong link between lottery sales and poverty
This detailed study by Cornell University shows that state lotteries get a disproportional amount of sales from the poor and disadvantaged and examines the reasons behind why those who have the least spend the most on the lottery. While it is for many a source of entertainment to play, the study finds that the real reason for this trend is that those stricken with poverty look to the lottery as a way to improve their lives and help them escape their poverty. However, the lottery will often hurt, not help, their financial predicament, further pushing these Americans deeper and deeper into a downward spiral of crippling poverty.
Cornell University study -Entertainment, Poverty and the Demand for State Lotteries
The State Lottery: A Failure of Policy and Ethics
This powerful essay by Elizabeth Winslow McAuliffe in Public Integrity shows how the lottery is a public policy failure by spotlighting two fact-based conclusions: 1) the evidence indicates that the original aims of the state lottery have not been fulfilled; and 2) the lottery cannot be defended as an ethical enterprise for government.