Lotteries | Page 3 | Stop Predatory Gambling

Behind the Human Urge to Gamble

Lotteries, Online Gambling, Public Health, Regional Casinos, Sports Betting, Studies

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.

Something for Nothing – A Model of Gambling Behavior

2 Out of 5 Low-Income Americans Believe the Lottery is the Best Way to Build Wealth

Fraud, How Gambling Impacts Democratic Values, Lotteries, Lowering the Standard of Living for Ordinary Citizens, Predatory Business Practices, Studies

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

Lotteries, Lowering the Standard of Living for Ordinary Citizens, Predatory Business Practices, Studies

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

Essays, Fraud, How Gambling Impacts Democratic Values, Lotteries, Lowering the Standard of Living for Ordinary Citizens

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.

The State-Sponsored Lottery

Oregon launched an aggressive advertising campaign to promote the Lottery’s highly-addictive electronic gambling machines

Lotteries, Lowering the Standard of Living for Ordinary Citizens, Predatory Business Practices, Public Health, Studies

This excellent blog post from The Tax Foundation highlights how the state of Oregon, after passing a smoking ban in bars and restaurants to restrict a dangerous activity, launched an aggressive advertising campaign to promote the Lottery’s highly-addictive electronic gambling machines to make up for the anticipated loss of revenue caused by the smoking ban.

The Tax Foundation – Reading Between the Lines of Oregon’s Video Lottery Terminals

Slot Machines Near Misses Are Perfectly Tuned to Stoke the Addiction

Fraud, Investigative Journalism, Lotteries, Predatory Business Practices, Public Health, Regional Casinos, Slot Machines

The Discover Magazine blog helps explain the allure of slot machines and the difficulty that some gamblers have in walking away by highlighting that, to a gambler’s brain, a near miss provides almost the same high as a win.

Slot Machines Near Misses Are Perfectly Tuned to Stoke the Addiction

80% of Lottery Profits Come From 10% of the Players

Government Revenues from Gambling, Investigative Journalism, Lotteries, Lowering the Standard of Living for Ordinary Citizens, Predatory Business Practices

According the New York Times: “States are also trying to bolster the number of ‘core’ players, according to interviews with lottery officials in several states. Such players typically represent only 10 percent to 15 percent of all players but account for 80 percent of sales, according to Independent Lottery Research, which does research and marketing for state lotteries.”

For Schools, Lottery Payoffs Fall Short of Promises

National Report Concludes That Predatory Gambling Worsens Long-Term Budget Problems

Government Revenues from Gambling, Lotteries, Online Gambling, Regional Casinos, Sports Betting, Studies

A 2009 report by the Rockefeller Institute of Government at the State University of New York Albany concluded that predatory gambling worsens long term budgetary problems for states. Read the report below to see why states that institute predatory gambling as a means to stabilize the budget are deeply disappointed time and again:

“Income from casinos and lotteries does not tend to grow over time as rapidly as general tax revenue. Expenditures on education and other programs will generally grow more rapidly than gambling revenue over time. Thus, new gambling operations that are intended to pay for normal increases in general state spending add to, rather than ease, long-term budget imbalances.”

2009-09-21-No_More_Jackpot Rockefeller Report

Why the Poor Play the Lottery Even More When Times Are Tough

Lotteries, Lowering the Standard of Living for Ordinary Citizens, Online Gambling, Studies

Yale University’s Emily Haisley analyzed why poor people play the lottery even more when times are tough. Read this New York Times story about her report.

Citation: Carnegie Mellon University (2008, July 24). Why Play A Losing Game? Study Uncovers Why Low-income People Buy Lottery Tickets.

Lottery Advertising: The Pathology of Hope

Fraud, Legal Opinion, Lotteries, Predatory Business Practices

Respected gambling researcher Robert Goodman has called lottery advertising “the pathology of hope” and state lotteries, because of their exemption from truth-in-advertising laws, fully exploit this pathology.

Most industries and companies are subject to truth-in-advertising laws enforced by the Federal Trade Commission. According to these laws, advertising must be truthful and non-deceptive, advertisers must have evidence to back up their claims, and advertisements cannot be unfair. Since 1974, the U.S. Congress has exempted state-run lotteries from these laws. Because of this, governments and lotteries have wide latitude in how they can promote their product, exaggerate chances of winning, and encourage more of our fellow citizens to lose their money instead of saving or investing. All federal laws relative to the lottery can be found in Title 18 of the U.S. Code, Sections 1301 to 1307. The final section, 1307, outlines the lottery’s exemption from truth-in-advertising laws.

These predatory and deceptive practices can be found in the media plans of the lotteries. Ohio’s Super Lotto media plan, for example, stated that lottery promotions should be timed to coincide with the receipt of government benefits, payroll and Social Security payments.

Lottery – U.S. Code