In this paper, Harrigan and Dixon examine how the same slot machine games with different payback percentages may affect the player’s behavior. Interestingly, slot machines with higher payback percentages (offering a perceived air of fairness for the player: 98% vs. a lower payback of 85%), were more likely to impose the most risk for ensuing gambling problems. In their findings, they argue for the regulations of lower payback percentages (85%), as the higher ones appear to be far more addictive.
Lotteries
One-Fifth of Parents Reported Buying a Lottery Ticket for Their Children
This study by the International Centre for Youth Gambling Problems at McGill University finds “approximately one-fifth of parents reported buying a lottery ticket for their children” in Canada.
The Lottery is a tax, an inefficient, regressive, and exploitive tax
Max Galka of Metrocosm compiled data from the New Your State Lottery which illustrates the deceptive methods used by the state governments to advertise, distribute revenues, reveal expenses and inflate ticket costs.
2015 The lottery is a tax, an inefficient, regressive, and exploitative tax
Oregon Cutting Vital Programs, But Still Spending Nearly $9 Million on Lottery Advertising
The Oregonian reports that the state of Oregon is “cutting programs that serve poor families, threatening to close highway rest stops and laying off teachers.” But this has not stopped the Oregon Lottery from spending $8.9 million on messaging during the 2011 fiscal year in its effort to encourage more Oregonians to gamble.
Whatever Oregon’s Trying to Communicate, It’s Costing You Millions
Lotteries Hurt the Economic Security and Well-Being of the State’s Families
In its recent report, Arkansas Advocates for Children and Families concludes that a lottery hurts the economic security and well-being of the state’s’ families – regardless of how much money it raised. The report lays out the following reasons: 1) Lotteries function as regressive taxes that disproportionately hurt the economic security of low-income families; 2) Lotteries are unstable sources of tax revenue that can decline from year to year. Overall, any positive effect on state budgets tend to fade over time; 3) Lotteries and other forms of gambling often lead to negative social and economic consequences for children and their Lotteries function as regressive taxes that disproportionately hurt the economic security of low-income families costs which must often be borne by the state; 4) Researchers have found that Georgia’s “Hope Scholarship” lottery, often cited as a model for lotteries in other states, is disproportionately funded by low-income households, while higher-income, more-educated households disproportionately benefit from the scholarships; 5) A lottery would do little to improve access to higher education among the lowest-income citizens and would prey upon those who stand to lose the most from state- sponsored gambling; and 6) If increasing access to higher education is indeed important to Arkansas’s future economic success, then the state should commit to finding a stable, reliable and fair source of funding for it.
State Lotteries and Consumer Behavior
This report revealed that household lottery spending is financed primarily by a reduction in non-gambling expenditures, not by a reduction in expenditures on other forms of gambling. The introduction of a state lottery is associated with an average decline of $46 per month, or 2.4 percent, in household nongambling expenditures. Low-income households reduce non-gambling household expenditures by 2.5 percent on average, 3.1 percent when the state lottery includes instant games. This report was complied by Melissa Schettini Kearney at the Wellesley College and National Bureau of Economic Research.
State Revenues from Predatory Gambling are Totally Dependent on Problem Gamblers
If anyone doubts how much the government program of predatory gambling depends on victims, this study will provide convincing proof. Nova Scotia provides one of many opportunities to determine how much money comes from problem gamblers. Study results vary widely with location and “mix” of available gambling. This study from the Nova Scotia Department of Health is one of the best on the topic. 5.7% of adults in Nova Scotia are involved in regular continuous play of video lottery gambling. These adults account for approximately 25% of all those who play video lottery terminals (VLTs) each year in the province and contribute approximately 96% of the annual provincial net revenue for video lottery gambling. Problem gamblers are likely to comprise half of the gamblers seated at VLTs at any given time.
Fair Game: Producing Gambling Research
This extensive and important report by the UK’s Rebecca Cassidy details the ways in which gambling research is presently conducted and funded. It also identifies a need for more unbiased reporting. It examines the state of gambling research and how it can be tainted by the influence of money and/or lawmakers who are supported by the gambling industry.
He Who Pays the Piper Calls the Tune with Gambling Research
A key study found academic research into gambling heavily biased, controlled by industry and government. Gambling researchers maintain funding by producing research that is safe, uncritical and reliably delivered. What is lacking is the asking of the uncomfortable questions and hearing even more uncomfortable answers, something the government nor gambling industry are inclined to do.
2014 He who pays the piper calls the tune- gambling with research
Big Problems with Gambling Research
With state legislatures across the country considering legalized gambling expansion, the need for unbiased research is crucial. While other fields, such as alcohol or tobacco rely on academia for fact-based evidence, many gambling researchers remain beholden to industry funding, resulting in flawed and influenced findings. The research produced by independent studies, while likely more valid, may be perceived as incomplete or inferior due to lack of funds and access to data.