Researchers now believe that the very data casinos use to track customers betting habits can be used as a tool to reduce the problem of gambling addiction. Addiction scientists can use customer tracking information to create computerized models to spot and warn people with high risk profiles. But the reality is, it is merely window dressing, with casinos having little incentive to intervene with their most lucrative customers.
2013 Researchers Bet Casino Data Can Identify Gambling Addicts
This article from the CBC News explains the Nova Scotian government’s recent decision to abandon its “My-Play system” where players, using a card to activate the machine, would be able to set spending and time limits on a VLT (video lottery terminal) and see their spending habits. Gambling interests argued that this system wasn’t working because people would use multiple cards- even despite a 2011 study that found that this system is effective. Gambling critics argue that this is the work of gambling interests upset about their bottom lines being hurt. The My-Play system has already been adopted and has been working quite effectively in places like Norway but now, just two years after the system as made mandatory, the system is gone and Nova Scotian gambling interests can continue to profit more and more from problem gamblers.
VLT cards that track gambling habits abandoned in Nova Scotia
According to this article from The Wall Street Journal, the same data casinos use to track customers’ gambling habits can be used to identify gambling addicts. Casino customer-tracking information could create computerized models that can spot and warn people with high risk profiles. But what do casino operators, who extract more than half their profits from addicts, think of the idea? “I think it’s a terrible idea,” said former Caesars head Gary Loveman.
Bwin.Party Digital Entertainment, a major European online gambling company, released data on 4222 gamblers, and the math behind gambling win probabilities shows just how badly the odds are stacked against gamblers. Experts say these data figures are comparable to those of real casino here in the US, however casinos keep their data a heavily-guarded secret. The figures released show that statistically, the more you play, the more you’ll lose- the heaviest gamblers had only a 5.4% chance of ending in the black, compared with 17% of the customers who placed the least amount of wagers. Furthermore, the data shows that casinos and gambling operations rely mostly on problem gamblers for their revenue- 2.8% of the customers provided half of the company’s profits, and 10.7% provided 80% of revenue. This The Wall Street Journal article summarizes the findings.
2013 How Often Do Gamblers Really Win- New data provide some answers
Commercialized gambling is based on getting people to lose far more than they can afford. One common tactic is to get citizens to chase their losses. Casinos like Foxwoods and Mohegan Sun often lend gamblers money interest-free because they know the players will inevitably gamble away all the money back to the casino. Then the casinos demand to be paid back for the money they lent! It’s a state-sanctioned business practice, often ensnaring people’s homes.. These two articles from WPRI (RI) and The Boston Globe describe the situation.
This article from Psychology Today shows how casinos use offers for free services- such as a free room or meal- to trick seniors into playing. In some cases, when the gambler is addicted enough and has enough money, these free meals and rooms become free limo and jet rides from home to the casino. Such is the case with former San Diego mayor Maureen O’Connor who, throughout a decade of gambling, won and lost more than $1 billion, with a net loss of over $13 million. O’Connor, now 67 years old, says she had a brain tumor that may have been impairing her judgement at the time. This vulnerability was compounded when casinos began sending private jets to San Diego to bring her to play. Though the private jet case is an extreme, this principle of giving free stuff to seniors to lure them in is commonplace for casinos, as the article below explains.
2014 Casinos’ predatory practices are a test case for financial elder abuse
A study from the University of Lethbridge shows that in Alberta, the Canadian province that gets the most revenue from gambling, addicts fund nearly half of the gambling profits. This is especially astounding, considering gambling addicts make up only 2-3% of the population, leading to what researchers call an “ethically problematic” situation.
Below is one of the best analyses explaining why gambling addiction has the highest rate of suicide of all the addictions. The psychological effects of problem gambling can be extremely harmful, and the feeling of despair that comes with gambling away all of one’s money is toxic. This article by The Fix is a must-read for anyone looking to understand why so many gambling addicts consider taking their own lives.
A study by the University at Buffalo Research Institute on Addictions shows that our nation’s poorest citizen are also those who problem gambling hits the hardest. Those living in poor neighborhoods are over twice as likely to have a gambling addiction than their counterparts in a more affluent community.
People in poor neighborhoods are twice as likely to have gambling problems
According to the Louisiana Association on Compulsive Gambling, about 4.4 percent of adults over 21 in Louisiana, or as many as 159,000 people, demonstrate problematic or pathological gambling. The problem is even worse among young adults. About 14.3 percent of adults between 18 and 21 have problematic or pathological gambling issues. That’s as many as 23,000 people.
