• A study by the National Institute of Mental Health concluded 4.2 million Americans are addicted to gambling, 60 percent of whom have yearly incomes under $25,000.

Howard Dayton, Founder and President of Crown Ministries Small Group Financial Study, 1989

• Gambling creates no new wealth. It redistributes wealth on an inequitable basis. It enriches the few and impoverishes the many. Gambling is non-productive. It performs no useful or necessary services. Gambling is parasitic.
• Gambling depresses legitimate business, siphoning off money from the regular business community. It dislocates the purchasing dollar. Business leaders are reluctant to invest money in areas that sustain large gambling enterprises because of the ensuing bad debts, delinquent time payments, and bankruptcy. Gambling disrupts the normal checks and balances of a well-ordered community. Gambling restricts business.
• Gambling increases welfare costs. Gambling weakens the stability of family life. Gambling lowers the standard of living and necessitates a larger welfare burden, thus raising taxes. Increased revenue from gambling means larger claims for welfare.
• Gambling increases crime. Gambling always attracts racketeers and mobsters. Gambling increases the number of murders, assaults, robberies, crimes of violence of all kinds, etc. The underworld thrives on gambling. Police cost increase.
• Gambling corrupts government. Gamblers always seek to increase their offers and to buy protection. Gamblers are soul-less in attempting to corrupt police, judges and legislators. Instead of the state controlling legalized gambling, the professional gamblers often end up in control of the state.
• Gambling victimizes the poor. Gambling leads to embezzlement, bribes, extortion, treason, suicide, and corruption of college and professional athletes. Crime often results from victims trying to recoup gambling losses. Those who can least afford it usually gamble the most. Gambling exploits the weaknesses of individuals. Gambling and poverty go hand in hand. Inner-city residents are hurt the most by expanded gambling.
• Gambling is a sophisticated form of legalized stealing. In winning, one obtains the wages that another person has earned without giving anything in exchange. The larger the winnings, the more someone else had to lose.
• Gambling produces the wrong attitudes toward work. It promotes the idea that a person can live by his wits and luck without making any contribution to society.
• Gambling contradicts social responsibilities. Mature adults try to minimize the risks in life. Gambling seeks to maximize risks. Responsible societies attempt to build security into life, gambling undermines security. Gambling deliberately creates artificial and unnecessary risks. Gambling militates against the highest values of human welfare. History shows that a major increase in gambling has signified the decline of a nation.
• Gambling revenues violate all the sound theories of taxation. Gambling revenue is regressive, inequitable, variable and unpredictable. To make public service dependent upon erratic gambling “taxes” is irresponsible. Public service should be soundly financed.
• As a source of state revenue, gambling has a consistent record of failure. Proponents promise huge government income from legalized gambling, but only a trickle of money results. Even in Nevada, only about one-third of the state’s budget comes from gambling. Lotteries have been discredited as a source of school funds.
• Gambling is socially disintegrating, politically corrupt and morally dangerous. Gambling is bad business, bad politics and bad morals. The State cannot gamble itself rich.

The Case against Legalized Gambling.

General Facts:

“…pathological gamblers engage in an estimated $1.3 billion in insurance-related fraud per year”.

The South Dakota Department of Social Services reports that in the fiscal year preceding gaming there were approximately 300 reports of children in need of protective services. In the fiscal year following the institution of gaming, that number rose to 500 reported cases. Actual juvenile case filings including delinquency, children in need of supervision and abuse and neglected cases rose by 15 percent. In addition to increased felony activity, Class 1 misdemeanors including simple assaults and DWI’s also increased by approximately 70 percent.

Jeff Blumberg, States Attorney, Deadwood, South Dakota

• The American Insurance Institute is cited as estimating that 40% of white collar crime has its roots in gambling. The Institute findings indicate that insurance fraud alone as related to gambling is $1.3 billion per year.
• The psychological and financial reasons for gambling are, at least in part, based on a person’s economic status. Those with higher incomes tend to associate gambling as entertainment or a way to socialize. On the other end of the spectrum, the poor look upon gambling as a form of investment. They have few alternative forms of investments, usually not real estate, the stock market, etc. As a consequence, poor people view gambling less as play and more as a serious chance (maybe their only chance) to improve or transform their lives.
• Lower-income people spend a greater percentage of their income on gambling. This means that the poor who are drawn to gambling are paying a much heavier tax than are higher-income people.
• United Way Gaming Task Force in Baton Rouge, Louisiana, found a fivefold increase in the number of people seeking help for problem gambling between 1991 and 1994, the years when riverboat and electronic machine gambling rapidly expanded in that state. In Iowa, one complusive gambling clinic reported a leap from about 30 to 40 clients the year before the riverboat casinos came to that state, to 200 the year after they arrived; among these, the percentage of women rose from 5 to 40 percent. Valerie Lorenz, co-director of a 1990 statewide study by the Maryland Department of Health and Mental Hygiene, believes money is the substance of addiction and described a pattern of escalating financial troubles as the problem gambler goes deeper into debt. The process begins innocently enough when the gambler takes money from his or her savings account. But then as losses continue, the gambler starts selling valuables and securities. Twelve percent of compulsive gamblers become physically abusive. Also, almost all spouses admit to becoming verbally abusive to the gambler and to their children as a means of coping with the constant state of fear and stress. Problem gambling leads to other socially destructive and costly behavior. According to Lorenz, problem gamblers not only tend to have a high number of auto accidents, but they often don’t have insurance to cover the costs of damages. This not only results in economic losses and physical problems to themselves but also to others involved in the accidents.

The West Ohio Conference Council on Ministries Work Group to oppose casino gambling in Ohio., May, 1996

In 1989 before Iowa expanded it’s gambling 1.7% of the adult population had a gambling problem (this according to their own study) after expanded gambling in December of 1995 5.4% of the adult population had a gambling problem. That was before the expansion of 1996 so those figures could be even greater today. When you consider that between 40 & 50% of the adult population has not visited the casinos, that would mean that of those who do go to the casino nearly one in ten is likely to become a problem gambler. If there are 100 students here today that would mean of those who visit the casinos, one in ten or ten of a crowd of 100 would develop a gambling problem. Which ten would you want? These ten are likely to loose everything. We were told at the national conference that many problem gamblers do not seek help but of those who do, only about one in ten is successful in overcoming the problem. Most all addictions are bad, but with gambling you can lose everything in a single evening.

Gambling Discussion Westside High School, April 30, 1997

Expanded gambling will cost Nebraska $400 million to “save” less than $200 million.

Fact Sheet

Costs to Businesses = Additional $50,000/per year/per 100 employees (Univ. Miami Bus. Law Review 1994).
Pathological Gamblers in Gamblers Anon. (lesieur)
34% were fired from or quit work
44% had stolen from employers to finance gambling
26% were divorced or separated due to gambling

ADDICTIONS

“In Deadwood, S.D., citizens who once supported gambling wish they could return to the pre-casino days. Even some of those who make their living from the gambling business acknowledge that they had no idea what casinos would do to the town.”

Lincoln Journal Star, Lincoln, Nebraska, January 24, 1996

“People will spend a tremendous amount of money in casinos, money that they would normally spend on buying a refrigerator or new car. Local businesses will suffer because they’ll lose customer dollars to the casinos.”

Donald Trump, casino owner, told to the Miami Herald (Source:NCALG)

“…taxpayers and businesses are beginning to realize that…gambling produces no product, no new wealth, and so it makes no genuine contribution to economic development.”

Congressional Hearing, July 2, 1994, Statement of Prof. John Warren Kindt, University of Illinois.

“A study conducted for the State of South Dakota found that, after casino gambling was legalized in Deadwood, SD, business declined significantly at nearby restaurants, clothing stores, recreation services, business services, and auto dealers. Within two years, legalized gambling constituted one of the leading causes of business and personal bankruptcies among South Dakota residents.”

National Coalition Against Legalized Gambling

AP, Council Bluffs. Food handed out in the first quarter of 1996 increased 25% over fourth quarter 1995. “We’re hearing a lot of people say their spouse spent all the money at the casino”

Muscatine Journal, June 12, 1996

“There are two things that my counselors manning the 1-800-BETS OFF hot line have reported to me that should concern everyone:

• A continued increase in the number of callers stating their involvement in embezzlement.
• An increase in the number of calls evidencing domestic violence.

Tom Coates, Consumer Credit Counseling Service of Des Moines, July 17, 1996

“In Deadwood South Dakota, after two years of casino gambling, child abuse cases increased 42%.  Domestic violence and assaults increased 80%.

“The Economic impacts of Legalized Gambling Activities,”Prof. J.W. Kindt, Drake Law Review, Drake University, Des Moines, IA, Vol. 43, 1994.

“Where does it all end?  Divorce, loss of custody of children, jail, or suicide. According to National Council on Problem Gambling, 20% of those treated for compulsive gambling have attempted suicide—an 80% to 90% have considered it.”

Woman’s Day, February 1, 1996, p.43

Benefits

• Megaprofits to Licensed Organized Gambling Owners
• New Source of Tax Revenues to State (15% average of amounts Lost)
• New Source of Tax Revenues to Local (5% average of amounts Lost)
• Socio-Economic Costs = $3 for each $1 in Taxes
• (Fla. Off . Plan. & Budget = $8-$12 Costs/ $1 Taxes)
• Jobs Directed to Gambling Location (but for every 1 job created, 1-2.75 jobs lost in 35-mile radius and/or “Feeder Markets”) (U.S. Judiciary Hearing 1995; Univ. III. Bus. Rev. 1995)

ABC’s OF Licensed Organized Gambling

• Most Hidden Addiction (Harvard Med. Sch. 1995, 1996; Md. Alcohol & Drug Abuse Admin. Rep. 1990).
• Pathological Gambling recognized as Addictive Behavior by American Psychiatric Association (Listed in Diagnostic and Statistical Manual of Mental Disorders). American Medical Association (Res. 430) lists socio-medical costs already at $40 billion in 1994 and increasing.
• 65% of the Dollars Gambled come from 10% of the Public including Pathological and Problem Gamblers (P&Ps) (U.S. Judiciary Hearing 1995; Clotfelter & cook 1989).
• Casino Revenues come 27%-55% from Pathological and Problem Gamblers (Lesieur 1996; Coun. Comp. Gamb. of N.J. 1997).
• Taxpayer-Societal Cost of Each New Pathological Gambler = $10,000-$52,000/year (U.S. Cong.) Hearing 1994; Better Gov’t Assoc. Chi. 1992).
• Anticipated Increase = 1% of Population Base (in 35-Mile Radius or Feeder Markets) x $10,000-$52,000/year Anticipated Taxpayer-Societal Costs
  Example: 1989 = 1.7% P&Ps in Iowa with just Lottery (some racing)
  1995 = 5.4% P&Ps in Iowa after casinos came in 1992 (Iowa Dept./Human Services 1995).
  =Over a 200% increase in P&Ps in 5 years.

ADDICTIONS