The Big Gamble

It was great to see 60 minutes tackle this problem of government increasing the availability of gambling, on Sunday night.

So many in the media have become 3rd party advocates for the expansion of gambling. (A lot of gambling advertising money is spent on radio, TV and newspapers.

As a psychologist and President of United to Stop Slots in Ma. I would like to add a few points that were left hanging in Sunday nights 60 minutes report.

1-The National Gambling Impact Study Commission (NGISC)found that about 30% of active gamblers have some level of gambling problem from
-mild (or at risk) about 18%
-moderate (or problem gamblers) about 9%
-severe (pathological gamblers)
about 3%

2-The Gambling Industry attempts to minimize this problem by referring only to pathological gamblers when they discuss gambling addiction.

3-The reality is that the economic model of gambling requires advertising and marketing, to increase the total number of gamblers.

The more people who gamble, the greater the number of at-risk, problem and pathological gamblers.

Also, the NGISC found the number of pathological gamblers double within a 50 mile radius of a new casino.

4-Governor Rendell was wrong when he said on 60 Minutes, "These people are going to gamble anyway."

The Massachusetts Casino Industry could not be sustained by the small number of gamblers going to Connecticut. Like any predatory industry (smoking, alcohol, pharmaceuticals, oil etc.) the shareholders want to increase profits by increasing the volume of participation.

Only about 5% of Massachusetts residents went to buy Lottery Tickets in New Hampshire before the Massachusetts Lottery was authorized. Now about 75% of Ma residents buy Lottery tickets. (For most it is harmless entertainment-but those people do not lose much) The Lottery makes most of its money from those with mild. moderate to severe gambling problems and most of them are from middle to low income groups.

5-Addictions interact

There is a high correlation between gambling addiction and smoking, alcoholism, over-eating, drug use, criminal behaviors, internet games etc. The common denominator is.... "instant gratification"

Therefore, government promotion of gambling will inevitably increase other self defeating behaviors, (again on a continuum from mild, moderate to severe).
However, the economic model of all predatory industries, is to increase activity and sales. This inevitably moves people on the continuum toward more and more problem behaviors.

6-The tragedy is that our own government becomes a stakeholder in the Gambling Industry's success.

Incredibly, this not only increases the states social problems (crime, suicide, child abuse domestic violence, alcoholism etc.) but it is economically self defeating over the long term because it recycles millions of dollars (mostly from middle to low income groups) away from normal entrepreneurial exchanges, as illustrated by the higher unemployment and state budget deficits in most casino states as compared to most non-casino states.

(According to Time Magazine-June 28, 2010) the FY2011 budget shortfalls in some casino states were; Nevada 56.6%, Illinois 36.1%, New Jersey 37.4%, Connecticut 29.2% and Minnesota 26.4% compared to Ma. at about 8%)

7-The Gambling Industry uses Front Groups (The Coalition for Jobs and Growth in Ma.) and pays lobbyists to be 3rd party advocates. Unfortunately, because of the economic hard times many well meaning Union and Political leaders become 3rd party advocates for the Gambling Industry.

8--Finally, there has never been an independent cost-benefit analysis of any proposal to increase gambling in Massachusetts. Therefore proponents (and opponents) can make any assertion they want to, on either side of the benefit or cost debate.

The data presented by the proponents is derived originally from the Gambling Industry, their lobbyists and paid researchers.

Tom Larkin