Form of Government-Sanctioned Gambling

The Reverse Robin Hood Effect

Using data acquired from the Florida Lottery Commission, Florida scholars assessed what groups were benefiting from the lottery-funded Florida Bright Futures Scholarships and who were being harmed. Not surprisingly, the study reported that the “net benefits of the scholarships accrue disproportionately to counties with heavier concentrations of white, wealthy, and well-educated households.” The study concluded by stating: “If the Florida Bright Futures Scholarships are going to be made more equitable, the citizens who are harmed — the poor, the less-educated, and minorities, as well as citizens who care about fairness — need to get involved.”

The second study below uses survey data and finds similar results.

The Reverse Robin Hood Effect – The Distribution of Net Benefits From the Florida Bright Futures Scholarship

Some Futures Are Brighter than Others – The Net Benefits Received by Florida Bright Futures Scholarships

CkirbyThe Reverse Robin Hood Effect
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West Virginia Legislature Votes to Fund State’s Racinos

In March 2011, West Virginia’s State Legislature voted on a bill that will use $10 million from an existing lottery to fund the state’s racinos for 10 years. Del. Mitch Carmichael, of Jackson, called the bill “the most ‘ridiculous’ he’s seen in several years.”

“Why should we single out a particular industry, the gaming industry and the Greenbrier Hotel, to give them special $10 million giveaways from the people of West Virginia,” Carmichael asked. “I just think it sets the wrong priorities.”

West Virginia Legislature Votes to Fund Racinos with Public Money

LesWest Virginia Legislature Votes to Fund State’s Racinos
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Government-Run Gambling Bigger Than Organized Crime

Should our democratic institutions be competing with organized crime for revenue? Philadelphia Inquirer columnist Monica Yant Kinney discovers an important distinction between illegal underground gambling and government-sponsored predatory gambling: “Bookies don’t prey on gamblers. Bookies don’t solicit. Gamblers find them.”

This lies in stark contrast to state governments using taxpayer money to solicit our fellow citizens to play the lottery and providing tax incentives to allow casinos to come to town.

Pennsylvania Competing with Mob Bookies

CkirbyGovernment-Run Gambling Bigger Than Organized Crime
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Internet Sweepstakes: Coming to a Strip Mall Near You

Internet sweepstakes cafes are popping up all over the country. One of the highlights from the article below is a quote from someone making big money in the sweepstakes industry on his customer base: “Lower-income customers are coming in because they’re bad at math…It’s like the lottery. The lottery is a tax on people who are bad at math. They’re coming in to try and catch a big break.”

Strip-Mall Casinos Multiply Across Nation

CkirbyInternet Sweepstakes: Coming to a Strip Mall Near You
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“I Have a Feeling…I Can’t Quite Pinpoint the Research”

This April 2011 article from the Philadelphia Citypaper reports on Sands Bethlehem (PA) Casino president Robert DeSalvio testifying before the Pennsylvania Legislature that sending monthly statements to gamblers about their losses will violate privacy and may encourage citizens to gamble more because it will remind them about their loss, potentially creating the urge to chase. When asked what the basis of his claim was, he responded: “I have a feeling…I can’t quite pinpoint the research.”

Casinos spend hundreds of millions of dollars every year to build the very best information databases on their gamblers, allowing them to send all kinds of predatory marketing materials – often in real time – with the specific intent of getting the gambler to chase. DeSalvio’s testimony was willfully dishonest.

Philadelphia Citypaper – Care to Revise Your Statement

Ckirby“I Have a Feeling…I Can’t Quite Pinpoint the Research”
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Hitting Rock Bottom – West Virginia and the Problem Gambling Help Line

West Virginia recently released some jaw-dropping data about the impact of the failed government policy of predatory gambling in that state. Among the findings was that in one county, one out of every 87 residents has called the 24-hour problem gambling hotline seeking help for themselves or a loved one. What is even more troubling about that finding is only about 10% of problem gamblers seek help at all. That means 90% of the problem gamblers in the county have not called the hotline.

Hitting Rock Bottom – Ohio County Leads State in Calls To Gambling Hotline

CkirbyHitting Rock Bottom – West Virginia and the Problem Gambling Help Line
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Atlantic City Looks To Bus More Homeless Back Home

When predatory gambling interests come to your town or city, they falsely promise new jobs, revenue, and overall economic prosperity. However, the story below highlights the dark side of the industry. Beyond the glitz and glamor of Atlantic City’s multi-million dollar casinos, hundreds of homeless people are on the street with no place to go.

Atlantic City Looks To Bus More Homeless Back Home

CkirbyAtlantic City Looks To Bus More Homeless Back Home
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Casinos Profit From Under-Reporting Money Laundering

A CBC News investigation revealed suspected money laundering at the B.C. province’s casinos goes under-reported. “They say they’re being as vigilant as they can, but the conflict of interest is there because these people are flashing the money and ultimately the casino makes money. In a further conflict, provincial governments are both the benefactors and the regulators of casinos.”

Suspected Money Laundering Going Under-Reported

CkirbyCasinos Profit From Under-Reporting Money Laundering
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Money Laundering in Las Vegas

Despite stricter sanctions that have eliminated some of the criminal activities in Las Vegas, money laundering still persists. According to one IRS agent in Las Vegas: “In a currency intensive industry it’s virtually impossible to eliminate entry points for money laundering. We work hand-in-hand with the casinos.”

Money Laundering Still on Rinse Cycle in Las Vegas Casinos

CkirbyMoney Laundering in Las Vegas
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