Slot Machines

The Effects of Video Poker in South Carolina

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In 1997, Dr. Quinn founded the South Carolina Center for Gambling Studies and directed a statewide study of Video Poker’s impact on South Carolina. This study outlined the pattern of devastation Video Poker was having on average citizens and demonstrated the uniquely addictive nature of electronic gambling. Dr. Quinn’s study and a follow-up study with Dr. William Thompson of UNLV focusing on the economic impact of Video Poker in South Carolina, contributed greatly to demise of Video Poker in South Carolina.

Here are some key findings from the research:

1. The combination of electronic gambling and convenience venues is extremely addictive and destructive.
2. Minorities and women in particular appear disproportionately vulnerable to video poker.
3. People often gamble more often and/or longer when they are induced.
4. Sometimes people gamble and develop pathology because they have the opportunity.
5. The pathology associated with video poker, unlike other forms of gambling, may prove to be largely non-transferable.
6. The long term economic and social costs associated with gambling are often ignored by political processes obsessed with short term and visible financial gain.

Report of The Quinn-Pike Video Gaming Study

An Economic Analysis of Machine Gambling in South Carolina

CkirbyThe Effects of Video Poker in South Carolina
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Dopamine: Not About Pleasure But Its Anticipation

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In this web video, Stanford Neurology Professor Robert Sapolsky discusses how dopamine affects human behavior: the anticipation of a particular reward is more important than actually getting the reward. He singles out Las Vegas as a place where human beings are manipulated to believe they can win money, even though they have a slim chance of doing so. It is a great explanation about dopamine and how, why, and when our levels rise. Casinos and lotteries design their experience to blatantly exploit these traits.

CkirbyDopamine: Not About Pleasure But Its Anticipation
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The Criminalization of Slot Machines in the 20th Century Was Effective Policy

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This TIME Magazine article from 1953 offers a glimpse at the period following World War II when states recriminalized slot machines. “Though the state legally controlled them, the slots acted, increasingly, like a virus in the body politic, dividing Idaho citizens against each other, changing the shape of towns, altering social life, wounding business and giving whole communities a surrealistic civic philosophy.” By legalizing slot machines, the government was still unable to control the negative impacts: restaurants, doctors, dentists and other local businesses began to go broke as a result of slot clubs siphoning patrons and their money away and “as a result, in rapid and indignant succession, Idaho’s bigger cities began banning slot machines.”

Time Article, “Idaho: Out, Damned Slot”

CkirbyThe Criminalization of Slot Machines in the 20th Century Was Effective Policy
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By Misleading Players, Slot Machine Design Spurs Problem Gambling

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This article explains how reel electronic gambling machines (EGMs) have been designed to mislead players and have directly contributed to the high rate of problem gambling: “Unbalanced reel design must be a major factor, if not the major factor, in the maintenance of problem gambling principally because the gambler unconsciously believes he or she cannot lose.” Unlike table games, EGMs offer widely different odds of winning, which the authors compare to loaded dice or rigged carnival games. “The fact that the players do not know the rules makes the reel gambling machine unique amongst gaming devices. Not only are the players ignorant of the rules but the rules vary from machine to machine and neither the gaming industry nor the regulators disclose them. As far as transparency is concerned, the standards applicable to reel gaming machines are totally out of step with all other forms of gaming.” The authors make a strong case for establishing uniform standards, banning biased, “virtually-mapped” reels on EGMs and providing more transparency regarding the player’s chances of winning.

Unbalanced Reel Gambling Machines

LesBy Misleading Players, Slot Machine Design Spurs Problem Gambling
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The Johnson Act of 1951

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In 1951, Congress enacted the Transportation of Gambling Devices Act. The Act, more commonly known as the Johnson Act, has been amended several times during the intervening years. Most notably, the Act makes it unlawful to knowingly transport a gambling device to a state where such a device is prohibited by law.

Johnson Act

CkirbyThe Johnson Act of 1951
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Australia Attempting to End Electronic Gambling Machine Tricks

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Australia Senator Nick Xenophon is trying to stop certain features of electronic gambling machines (or “pokies” as they are known in that country) that trick players into thinking they have won, when they really have lost. Senator Xenophon is also requesting that the industry release machine probability accounting reports.

Call to Stop Pokie Machine Tricks

CkirbyAustralia Attempting to End Electronic Gambling Machine Tricks
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Problem Gamblers Can’t Judge the Cost of Electronic Gambling Machines

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According to the Australian Productivity Commission, people often underestimate how much people spend on various items, like transportation, clothing, etc. “For gambling, if we say we have spent $100, on average we have really spent $735. Then there are the pokies [electronic gambling machines]. On average, if pokie players say they have spent $100, they have actually spent $3448. That’s not a misprint: they are apparently aware of just 2.9 per cent of what they are losing.” Would receipts or a record of spending help people become more aware of how much they spend? Absolutely.

Problem Gamblers Can’t Judge Cost of Electronic Gambling Machines

CkirbyProblem Gamblers Can’t Judge the Cost of Electronic Gambling Machines
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Money From Slots Has Done Nothing to Improve Horse Racing

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This Washington Post story spotlights how slot money has been used to simply prop up tracks that have virtually no fan base and couldn’t exist on their own merits. When slots were legalized, the machines proved to be so lucrative many track owners lost interest in the sport and viewed it as a nuisance. They made no effort to improve the game or attract new fans; slot players are more profitable customers.

While the money has benefited owners, trainers and breeders, it has done nothing to popularize or improve horse racing. On the contrary, it has hurt the sport in some ways. At a time when almost every track is suffering from a shortage of thoroughbreds, the horses who go to slot-subsidized tracks could be running at viable tracks, helping them to offer a better product, instead of racing in a place where almost nobody watches them.

2012 Money from slots has done nothing to improve horse racing

LesMoney From Slots Has Done Nothing to Improve Horse Racing
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Slot Machines Largely Responsible for Racing’s Continuing Decline

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The long-term trends show the ontrack handle at racino racetracks has declined, a direct result of putting slot machines and table games in the building. Says one racing official quoted in the article below from The Daily Racing Form, one of horse racing’s dominant media outlets: “The racing industry has far more competition now, and a lot of it is right at the racetrack’s doorstep.”

Is Racing a Sport on the Ropes

CkirbySlot Machines Largely Responsible for Racing’s Continuing Decline
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