“When the state joins forces with private industry in order to sponsor and propagate an old human vice, the results can devastate both civic life and, in the long run, the civic purse as well.” This is the conclusion made by author Harvey Silvergate after a visit to Atlantic City with his son. His libertarian values would, one would think, compel him to support as many casinos as the free market would support. However, this visit to an Atlantic City casino showed him the despair which problem gamblers feel as they drain their savings in slots. The surrounding community, with its old, rundown, dilapidated buildings further convinced him of casinos’ harmful effects. Ultimately he makes the conclusion that this is not so much a private business as it is a government-sponsored industry that causes social dislocation and poverty. The story he tells is gripping and the poverty he describes is palpable. The article is a must-read for anyone looking into the issues of government-sponsored casino gambling.
Lotteries
North Carolina Lottery does not provide promised education funds
This article by the North Carolina Justice Center explains how the North Carolina Lottery is not living up to its promises of education funding. After providing an initial bump in funds for education, the level of education funding has now dropped back down to below pre-lottery levels. The old argument that the lottery will pay for its social injustice by giving money to schools is now defunct, according to the article, because the state spends less on education than it did before the lottery was put in place. Now that the lottery no longer provides money for education, it is no more than “a regressive tax that falls mainly on the poor”.
Political influence of gambling interests in Illinois grows due to lack of strong regulation
This study by the Common Cause details the growing influence of gambling interests in Illinois. Illinois is one of the few states without a limit on campaign contributions, so deep-pocketed lobbyists and special-interest groups, especially the gambling industry, can use their exorbitant amounts of money to exert influence over Illinois legislators.
Report examines how gambling research is funded
This extensive report by The Goldsmiths Report details the ways in which gambling research is conducted and funded and identifies a need for more unbiased reporting. It provides an interesting look into gambling research and how it can be tainted by the influence of money or lawmakers who are supported by the gambling industry, and is a great read for those interested in how certain influences affect gambling research.
Report shows staggering costs of problem gambling
This report, by The Victorian Competition and Efficiency Commission, estimates the cost of problem gambling to be as high as $2.8 billion in Victoria, Australia. Excess gambling by problem gamblers accounts for up to $1.4 billion of this, with the rest coming from the intangible costs for problem gamblers’ mental health and familial stability. This article by The Age summarizes the report’s findings.
2013 Cost of problem gambling could be as high as $2.8b- report
Oklahoma lottery produces disappointing results
This Journal Record article outlines the argument behind the opposition to the Oklahoma lottery, especially in light of its failure to live up to promises in the past decade. This piece gives an interesting look into the debate over lotteries and shows another example of the failure of government’s experiment with gambling.
The link between poverty and lottery sales is undeniable
This article by The Hartford Courant, written in response to a taxpayer-funded study that concluded no link between poverty and lottery sales, presents the findings of several other studies that have time and again found an irrefutable link between poverty and lottery sales, and poverty and gambling addiction. The author offers insightful comments on these many past studies that have found this strong link and finds the faults in the one study that has concluded otherwise.
Much of lottery revenue comes from those already receiving government subsidies
This in-depth report from the Federal Reserve Bank of St. Louis studied the relationship between income and lottery revenue and found that a large portion of lottery profits come from people who receive some financial subsidy from the government, suggesting the lottery profits from those with the least disposable income.
Gambling winnings, even when offset by losses, cost seniors more than you would think
This article, from The Wall Street Journal‘s “Market Watch”, shows how gambling winnings can cost seniors dearly when tax day comes. Even if they are balanced out by losses of the same amount, certain tax rates can skyrocket, leaving seniors to pay extra. Using a real example, the author shows just how much gambling can cost.
Arizona lottery revenue may not be going where promised
This article, from The Arizona Republic, documents how difficult it is to find where Arizona lottery profits are going. Instead of directing a portion of profits directly to, for example, K-12 education or health care, the lottery puts money into a general fund. This money could be going to Arizona schools, or it could be going to the pensions of Arizona lawmakers, but because of the nature of the general fund, it is impossible to track. The article shows how the amount of money the lottery says it puts back into the community can be deceiving.
2013 Arizona Lottery revenue has grown, but tracking how funds are used proves difficult