John M. Barron, Dept. of Economics at Purdue University; Michael E Staten of the McDonough School of Business at Georgetown University, Washington D.C. and Stephanie M. Wilshusen Georgetown looked at larger market areas and determined, “Our analysis predicts an 8% decline in 1998 filing rates for casino and collar counties, and a 1.4% decline in filing rates nationwide if one were to eliminate casino gambling.”
The Impact of Casino Gambling on Personal Bankruptcy Filing Rates
At Creighton University, Ernie Goss, Professor of Economics and Edward Morse, Professor of Law, used bankruptcy information to compare the roughly 250 U.S. counties with commercial or Indian casinos. “Our regression analysis on matched-pair counties indicates that those counties that legalized casino gambling during the 1990s experienced a cumulative growth rate in individual bankruptcies that was more than double the growth rate for corresponding non-casino counties.”
The Impact of Casino Gambling on Bankruptcy Rates – A County Level Analysis
In 2010, the Lehigh Valley Research Consortium released a report showing that 48 percent of those below the poverty line in the Lehigh Valley intend to gamble at the Sands Casino in Bethlehem, Pennsylvania. ”The casino ads always show young glamorous-looking people gambling,” said Michele Moser Deegan, a Muhlenberg College associate professor who directs the consortium. ”But when you go inside, you can see that it really is the working poor and middle class. This survey shows that.”
Social and economic costs of legalized gambling, and the difficulty of its regulation are the subjects of this Southern Illinois University Law Review article by John Warren Kindt. The evidence shows that gambling causes addiction, bankruptcy, crime, and corruption in its surrounding communities. All of the social costs associated with those problems can add up, and there is shockingly little pressure on government or the predatory gambling business to do better.
This study by Jon E. Grant, M.D., Matt G. Kushner, Ph.D., and Suck Won Kim, M.D. establishes a link between alcohol addiction and gambling addiction. Many casinos offer free alcohol because it increases the likelihood of people losing their self-control. The more people lose their self-control, the more money they lose gambling.
R. Keith Schwer, William Thompson and Daryl Nakamuro compiled this fascinating study of problem and pathological gamblers in which they estimate the social costs to gambling’s host community, arriving at a conservative figure above $19,000 per problem gambler. Some of the detail is particularly compelling: when pathological gamblers run out of legitimate sources of money they consider illegal sources. Starting close at hand, they pass bad checks. The study found that 63.3% wrote such checks. They also look for money in the workplace. Also, 30.1% admitted to stealing from the workplace in order to gamble or pay gambling debts. This is about the same portion who stole from the workplace in other surveys: 31.7% in Wisconsin, 37.1% in South Carolina, and 40.7% in Connecticut. A majority, 50.6%, of the respondents indicated that they had stolen money or things and used it to gamble or to pay gambling-related debts.
Beyond the Limits of Recreation – Social Costs of Gambling in Southern Nevada
Only about 6% of people experiencing problems with gambling are reported to seek help from problem gambling services, according to this study. People experiencing problems with their gambling often do not seek professional help until a ‘crisis’ occurs — financial ruin, relationship break down, court charges or attempted suicide — or when they hit ‘rock bottom. Another reason why problem gamblers are afraid to get help is because two of of three have done something illegal to obtain the money to feed their addiction.
This report highlights how serious gambling-related problems have emerged as an epidemic among America’s youth. Today, at least one out of every five young people has a serious gambling-related problem, up from one out of every ten in 1988. The prevalence rate of gambling among the young is now 80%, almost double the rate (45%) it was in 1988. A summary of the report can be found below. It was done by Durand F. Jacobs, Ph.D., ABPP Clinical Professor of Medicine (Psychiatry and Behavioral Sciences), Loma Linda University Medical School, California.
Dr. Robert Breen and Mark Zimmerman studied the length of time it takes the average compulsive gambler to become addicted. They found machines addict victims about three times faster than traditional table and track gambling. They are also the biggest moneymakers for government-sanctioned gambling today.
Slot Machine Addiction Study: The Rapid Onset of Pathological Gambling in Machine Gamblers