The Columbia Journalism Review examines how journalists should cover the expansion of predatory gambling – “…gambling needs to be covered like other economic development proposals – glitz and hype notwithstanding. Journalists should not forget that they may be the only ones able to cast a skeptical eye on plans to expand legalized gambling in their community.”
Studies
Future Growth in Gambling Revenue Will Not Keep Pace With Tax Revenue or Spending
The slides below are from a presentation by the Rockefeller Institute of Government at the 2009 Stop Predatory Gambling Foundation Conference. It outlines recent national trends in gambling revenue, growth in gambling revenue compared to growth in tax revenue and expenditures, and points for consideration by policymakers.
Rockefeller Institute – Trends in Gambling Revenue to the States
Montana Gambling Study Commission Report
This report prepared by the University of Montana’s Bureau of Business and Economic Research for Montana Gambling Study Commission found that gambling addicts account for 36% of video gambling revenues.
Montana Gambling Study Commission Report 1
Montana Gambling Study Commission Report 2
Montana Gambling Study Commission Report 3
Montana Gambling Study Commission Report 4
Montana Gambling Study Commission Report 5
Montana Gambling Study Commission Report 6
Misrepresented Game Outcomes and Problem Gambling
This research by Prof. Kevin A. Harrigan at the University of Waterloo looked at how slot players’ perceptions were influenced by a technique that has been used since 1983 in North America, called “clustering.” By observing the player perceptions (the frustration effect, the perception of early wins, illusion of control, biased evaluation of outcomes, entrapment, and irrational thinking) as well as looking at transcripts from Nevada hearings where proponents were aware of the psychological effect on players from near misses and virtual reels, the researchers raise concerns over the connection with misrepresented game outcomes and problem gambling.
Slot Machines – Pursuing Responsible Gambling Practices for Virtual Reels and Near Misses
Slot Machines: Distorted Player Views of Payback Percentages
This paper by Prof. Kevin A. Harrigan at the University of Waterloo presents a sample three-reel three-coin slot machine game with a bonus for three coins, and a true payback percentage of 85.6% when one or two coins are wagered and 92.5% when three coins are wagered. The player sees the winning or losing combination of three symbols on the payline as well as (a) the physical reels as they scroll by and (b) what is just above and just below the payline at the end of play.
The Design of Slots and the Implications for Problem Gamblers
This research by Prof. Kevin A. Harrigan at the University of Waterloo examines characteristics of Ontario slots and what the implications are for problem gamblers, including analysis of the probability accounting reports (or PAR sheets) to see how the games are designed. One of their key findings include: “Bonus modes are highly salient environments associated with wins that are in the view of the gambler a very good place to be. Because entering these arousing and highly rewarding bonus environments is rare, only those who gamble frequently will become classically conditioned to these environments and experience the combined effects of operant and classical conditioning – a situation that could preferentially target problem gamblers.”
PAR Sheets, Probabilities and Slot Machine Play – Implications for Problem and Non-Problem Gambling
Australia’s National Gambling Report
According to this report prepared by the Productivity Commission of Australia, it is estimated that severe and moderate problem gamblers made up only 4.7% of the population, but contribute 33% of net gambling revenues and 42.4% of gambling machine revenue.
Australia’s Gambling Industries 1999 Report Vol. 1
Texas Lottery Study Shows the Lottery Squeezing More Money Out of a Smaller Amount of People
This Texas Lottery Commission report finds that the percentage of Texans using the state’s lottery has plunged to one-third, the lowest level ever measured. The decline in fiscal 2010 — from 41.7 percent of residents to 33.8 percent — represents the second-largest year-to-year decrease since the Texas Lottery started in 1993. Yet despite this massive drop, the total amount of money spent on Texas Lottery tickets has held steady, which means a smaller amount of people are spending a lot more on tickets. It explains why Texas sells a $50 scratch ticket.
Low Income Citizens Lose Higher Percentage of Money on Lotteries
This 2008 study from the Journal of Risk and Uncertainty highlights the fact that the lottery appeals to people earning lower incomes and that these individuals spend a disproportionate amount of money on the lottery when compared to people with higher incomes. Additionally, the results suggest that the combination of myopic decision making and the “peanuts effect” – greater risk seeking for low stakes rather than high stakes gambles – can help explain the popularity of state lotteries.
Myopic Risk-seeking – The Impact of Narrow Decision Bracketing on Lottery Play
The Impact of Casinos on Fatal Alcohol-Related Traffic Accidents in the United States
This is a 2010 study from The Journal of Health Economics which investigates the impact of casinos on alcohol-related automobile accidents. Gamblers often drink excessive alcohol while gambling and casinos often provide free alcohol to problem gamblers. The results of the study indicate that there is a strong link between the presence of a casino in a county and the number of alcohol-related fatal traffic accidents.
The Impact of Casinos on Fatal Alcohol-Related Traffic Accidents