The brains of problem gamblers react more intensely to near misses than casual gamblers, new research from the University of Cambridge has found. The results help explain what keeps problem gamblers betting even though they keep losing.
The brains of problem gamblers react more intensely to near misses than casual gamblers, new research from the University of Cambridge has found. The results help explain what keeps problem gamblers betting even though they keep losing.
Non-negotiable slot credits, or what is commonly called “free play” has become the primary form of customer incentives in casinos. Today’s casinos use mail, phone and email solicitations to offer free slot machine play to lure citizens who have rarely been to a casino before, a tactic adopted from the tobacco companies who used to hand out free cigarettes in low-income neighborhoods. This article attempts to identify the emerging issues of free play and how they are impacting the frequency of play and casino profitability.
Bloomberg News ranked U.S. states by what it called “The Sucker Index” using 2010 data from the US Census and annual reports from state lottery commissions. The total dollar amount of prizes awarded was subtracted from ticket sales, and then the difference was divided by the total personal income of each state’s residents. A higher resulting number indicates a greater propensity for “suckerdom.” Georgia, Massachusetts, New York, Michigan and South Carolina earned Top Five status.
This 2012 report authored by Richard Herring and David Beggs analyzes the inextricable link between casinos and crime in surrounding counties. Based on the introduction of casinos into Miami-Dade County, a conservative estimate projects a $3 billion dollar impact on just the state prison system over a 10-year period.
According to the 2010 Australian Productivity Commission report (their government’s independent research and advisory body) which provides an in-depth analysis of the effects of the predatory gambling business on the nation, predatory gambling now costs Australian society about $4.5 billion dollars per year – the bulk of costs deriving from video slot machines. These costs exceed benefits when “excess” losses by problem gamblers is included. Cost per year per adult translates to $210. $1 U.S. dollar = $1.08 in Australian dollars as of Oct 23, 2009. You can find a longer summary of the report’s findings in the Profits from Gambling Addicts section.
Economists John Jackson and Douglas Walker published an article in Contemporary Economic Policy in early 2011 that showed that the increased revenue that comes from gambling often comes at the expense of sales tax revenue. The two also came to the conclusion that, in general, casinos and greyhound racing tend to decrease state revenues overall.
Economist Loretta Fairchild testified at a hearing in the Nebraska legislature in October 2011 to express her findings that the costs of predatory gambling significantly outweigh any benefits. She also notes that gambling “is one of a very small number of consumer items that economics considers as ‘special cases,’ because almost all types of gambling do have significant ‘spillovers’ on to people who don’t provide the gambling or use it, and these spillovers are mainly negative, harmful ones, on to families, friends and other businesses.”
Testimony of Economist Loretta Fairchild to Nebraska Legislature
The Boston Globe exposed that just three groups of bettors accounted for most of the winning tickets statewide for the lottery game Cash WinFall. Massachusetts Lottery officials initially said they were surprised to learn that just a handful of gamblers had taken over the $2 games and announced new rules to limit the dominance of sophisticated bettors.
Upon further investigation, the Globe “has found that lottery managers for years allowed and some say even encouraged the groups to manipulate the game, Cash WinFall. They provided extra ticket machines and printers to accommodate the biggest player, a retired store owner from Michigan, so he could buy more tickets faster. Gerry Selbee, whose gambling group spent millions of dollars on the game, said the regional director in Western Massachusetts personally thanked him for propping up flat lottery sales.”
While predatory gambling operators around the nation are still selling the idea of “destination resorts,” it is important for citizens to consider how one of America’s most well-known destination resort is faring. The 2009 article below from the Press of Atlantic City reports that the “city’s population fell slightly to 34,769 in 2008, down from 35,770 in 2007 – but the percentage of families living in poverty grew to 24 percent from 19 percent in the same period.”
A recent Johns Hopkins study found that gambling was considered to be normal behavior among a survey of adolescents, particularly among males. Even more troubling was that 12 percent of the participants had behavior considered to be “problem gambling” – much higher than the 1 to 3 percent that is normally attributed to U.S. adult populations.