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Newspaper series spotlights predatory and fraudulent business practices of Oregon Lottery

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This must-read series from The Oregonian details the business practices of the Oregon Lottery. It represents one of the very best investigative journalism efforts into state lotteries ever done.

2013 Oregon Lottery- Revenues grow on the increase in video slots games

2013 Oregon Lottery- Agency pushes slot machines as problem gamblers pay the price

2013 Oregon Lottery- Games, like tobacco earlier, could face liability lawsuits

2013 Oregon Lottery- Reader stories of state-sponsored addiction (day 1)

LesNewspaper series spotlights predatory and fraudulent business practices of Oregon Lottery
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The Relationship Between State Lotteries and Government Assistance Payments

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This paper examines United States lottery revenues and finds an increase in lottery activity during weeks in which transfer payments (i.e. Aid to Families with Dependent Children, Social Security, disability, etc.) are distributed. Revenues from state lotteries are also shown to increase during the week transfer payments are distributed. The timing of the increase in lottery purchases suggests a portion of the transfer payments is used to purchase lottery tickets.

Running the Numbers on Lotteries and the Poor – An Empirical Analysis of Transfer Payment Distribution and Subsequent Lottery Sales

LesThe Relationship Between State Lotteries and Government Assistance Payments
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2 Out of 5 Low-Income Americans Believe the Lottery is the Best Way to Build Wealth

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According to the survey of 1,000 Americans by Opinion Research Corporation for the Consumer Federation of America and the Financial Planning Association, 21% of Americans believed that the lottery would be their most effective and practical strategy for accumulating several hundred thousand dollars. This percentage was higher among lower-income individuals, with 38% of those who earn less than $25,000 pointing to the lottery as a solution.

Survey- 21 percent say lottery is most practical path to wealth

Les2 Out of 5 Low-Income Americans Believe the Lottery is the Best Way to Build Wealth
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Study finds strong link between lottery sales and poverty

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This detailed study by Cornell University shows that state lotteries get a disproportional amount of sales from the poor and disadvantaged and examines the reasons behind why those who have the least spend the most on the lottery. While it is for many a source of entertainment to play, the study finds that the real reason for this trend is that those stricken with poverty look to the lottery as a way to improve their lives and help them escape their poverty. However, the lottery will often hurt, not help, their financial predicament, further pushing these Americans deeper and deeper into a downward spiral of crippling poverty.

Cornell University study -Entertainment, Poverty and the Demand for State Lotteries

LesStudy finds strong link between lottery sales and poverty
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Prominent Independent Study Shows Casinos Have Made Native American Tribes Poorer

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For more than 25 years, the casino lobby has told the American people that casinos are the engine to help Native American tribes prosper. Now The Economist, the world’s leading international magazine, spotlights how casinos have actually made tribal members poorer, pointing to a new study in the American Indian Law Journal showing that growing tribal gambling revenues can make poverty worse. The study looks at two dozen tribes in the Pacific Northwest between 2000 and 2010. During that time, casinos owned by those tribes doubled their total annual take in real terms, to $2.7 billion. Yet the tribes’ mean poverty rate rose from 25% to 29%. Some tribes did worse: among the Siletz poverty jumped from 21.1% to 37.8%. Below is both the story from The Economist and the study from the American Indian Law Journal.

How cash from casinos makes Native Americans poorer

American Indian Law Journal report by Gregory Guedel

LesProminent Independent Study Shows Casinos Have Made Native American Tribes Poorer
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The Software and Design of Slot Machines

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University of Waterloo (Canada) computer game design researcher Kevin Harrigan, whose research has made headlines around the world, recently testified before the New Hampshire Gambling Study Commission to explain the software and design features of slot machines. Through Canada’s Freedom of Information Act, Dr. Harrigan obtained slot machine design documents, called PAR Sheets. Slot machine manufacturers commissioned an army of lawyers but failed to block Dr. Harrigan’s access to this information. Without losses disguised as wins and frequent near win displays, slot machines would not be profitable.

Harrigan presentation to the 2010 NH Gambling Commission

LesThe Software and Design of Slot Machines
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