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Saturday, September 3, 2011

Keep score for gamblers with monthly statements

Legislators genuflecting before the Gambling Industry repeatedly fail to protect consumers.
Monthly statements are a concrete beginning. Let's see if this passes or if legislators once again bow to specious arguments.


Keep score for gamblers

Casinos don't gamble. They collect gamblers' lost money. So, the industry naturally is averse to the risk inherent in regularly notifying gamblers of how much they have lost.

In Pennsylvania, politicians have reveled in collecting the state government's share of the take at casinos because they view it as free money. It doesn't even carry a political cost because they don't have to call it a tax. But the revenue is, for the most part, the state's share of money lost by Pennsylvanians, including an unknown but large number who are addicted to gambling.

Ever since the state government created the Pennsylvania gambling industry in 2004, some members of the Legislature have attempted to swim against the tide of easy state revenue. They want to change the law in order to mitigate gambling addiction.

One simple measure, which was reintroduced this year by Rep. Paul Clymer, a Bucks County Republican, would require casinos to send monthly statements to their rewards card holders.

The industry has objected on grounds ranging from costs to privacy concerns, but those objections should not prevent passage of the bill.

Costs can be mitigated in many ways. Statements could be required only when cards are used or sent by email, or sent with promotional material that many casinos regularly mail to their best customers. The privacy risk is no greater than that regarding any other financial information sent by mail or email.

Casinos complain that no other state has such a requirement. But, so what? Pennsylvania's objective should be to have the highest possible level of consumer protection in the country.

Statements would simply provide gamblers with detailed evidence of how they're doing. And as the casinos know, that usually is not so well. Consumers then could decide what to do with the information, which also should include details on how to get help against addiction.

The bill should pass. If providing consumers with detailed information spooks casinos, that speaks volumes about the scope of the problem.



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