USPACT
Research

 

 

Much of the available research has been paid for and/or provided by the gambling industry

These reports refute the misinformation contained in industry-biased reports

Comments or Suggestions: contact@uspact.org

CA Attorney General Report - Gambling in the Golden State, May 2006 - Excerpts from news article: The report by the attorney general's office concludes "the annual cost of adult pathological gamblers in California is an estimated $489 million and the annual cost of adult problem gamblers is an estimated $509 million." ... "These costs derive from a number of social and personal problems that correlate with problem gambling, including crime, unpaid debts and bankruptcy, mental illness, substance abuse, unemployment and public assistance," it says. ... In addition, crime rates are higher near gambling establishments, and problem gamblers are more likely to commit violent crimes. An alarming number of problem gamblers, nearly half, are youths. ... "I am surprised that given all of the efforts to radically expand gambling pending in the Legislature right now, the release of this bombshell report has not received the attention it deserves," said Fred Jones, an attorney for the California Coalition Against Gambling Expansion. (Legislators press ahead, 8/23/06) Report: http://www.library.ca.gov/crb/06/04/06-004.pdf

CA - County Impact Analysis- Kromm Testimony before US Senate Committee on Indian Affairs, February 2006 - There is no standard reporting format, some costs are annual, some are one-time. In every case reported, the costs to the county outweigh any reimbursement received from the casino. See the full report for details.

  • Amador County - law enforcement, courts, roads - $7,332,572
  • Butte County - transportation, law enforcement, fire - $376,500
  • Imperial County - roads, solid waste - $20,100,000
  • Kings County - roads, fire - $4,440,700
  • San Bernardino County (existing casino)- transportation, fire, law enforcement, courts, infrastructure, social services - $2,366,884
  • San Bernardino County (proposed casino #1) - fire, law enforcement - $731,000
  • San Bernardino County (proposed casino #2) - law enforcement - $130,000
  • Santa Barbara County - transportation, transit, roads, law enforcement, fire, housing, air quality, outdoor recreational - $7,876,275
  • Yolo County - law enforcement, courts, land and recreation, roads, general government, health and human services, other - $5,270,733

CA - Contra Costa County Public Health and EMS Impact Study - There are several societal issues that are believed to be affected by gambling. Alcohol & other drugs; Bankruptcy; Child abuse & neglect; Crime; Divorce; Domestic violence; Mental health; Smoking; Suicide; Truancy. A recent article published in the British Medical Journal demonstrates that problem gambling has clear health related consequences. August 1, 2005

The house never loses and Maryland cannot win: Why casino gaming is a bad idea - Report of Attorney General J. Joseph Curran, Jr. on the impact of casino gaming on crime. Presented to the joint executive-legislative task force to study commercial gaming activities in Maryland. Report on Maryland website July 14, 2005

U.S. Congressional Research Reports - Congressional Research Reports for the People. American taxpayers spend nearly $100 million a year to fund the Congressional Research Service, a "think tank" that provides reports to members of Congress on a variety of topics relevant to current political events. Yet, these reports are not made available to the public in a way that they can be easily obtained. A project of the Center for Democracy & Technology through the cooperation of several organizations and collectors of CRS Reports, Open CRS provides citizens access to CRS Reports already in the public domain and encourages Congress to provide public access to all CRS Reports.

Gambling, Who's Really at Risk - The connection between gambling and crime - ... many respected scholars, researchers and law enforcement officials have determined that the introduction of casino gambling into a community has a significant impact on crime and not just locally, but in the surrounding region as well. - Tourism itself cannot account for the significant increases in crime seen where gambling has been introduced. Constantine & Aborn Advisory Services, May 19, 2005.

The Impact of Casino Gambling on Individual Bankruptcy Rates from 1900 to 2002 Estimates from our model show that personal bankruptcy rates in a noncasino county increased by 266% over a thirteen year period whereas a county with a casino in operation during this period would experience an increase in bankruptcy rates by approximately 325% -- a compound annual growth rate differential of nearly 2 percent. It should be noted that this analysis ignores the bankruptcy results from non-casino counties that are contiguous to casino counties. In that respect our results likely understate the bankruptcy impact of casinos.(Ernie Goss and Edward Morse, 2005)

All Gambling All the Time- Turning the Empire State into the Gambling State "This report has revealed the dark side of gambling: the "silent" addiction of problem gambling; political corruption; crime; suicide; and hidden economic costs. This is the side that the gambling interests don't want anyone to see. Theirs is the lie that soft-pedals gambling as "gaming"; it is the false promise of economic salvation; and it is the glib dismissal of people who are suffering as a direct consequence of state action." A Legislative Report by Senator Frank Padavan, April, 2004

Casinos, Crime and Community Costs Overall, 8.6 percent of property crime and 12.6 percent of violent crime in counties with casinos was due to the presence of the casino. Counties that neighbor casino counties did not experience compensating crime reductions, indicating that crime was created in casino counties, rather than simply being shifted from one area to another. (Earl L. Grinols, David B. Mustard, Revised: September 2004.)

Gambling and Crime among Arrestees: Exploring the Link Is there a connection between problem gambling and crime? Do compulsive or pathological gamblers resort to criminal activity to pay their debts and finance their bets? Using the Arrestee Drug Abuse Monitoring (ADAM) Program as a survey vehicle, researchers found significantly more problem gambling among arrestees than in the general population. The arrestees who were interviewed had high levels of criminal activity related to pathological gambling. The percentage of problem or pathological gamblers among the arrestees was three to five times higher than in the general population. Nearly one-third of arrestees identified as pathological gamblers admitted having committed robbery in the previous year. Approximately 13 percent had assaulted someone for money. Pathological gamblers were much more likely to have sold drugs than other arrestees. U.S. Deptartment of Justice, 2004. Also see: Pathological Gambling in Arrestee Populations, Richard C. McCorkle, Ph.D., 2002

Casinos in Alabama: Are they worth the trouble? "The economic consequences of legalizing casinos in Alabama vastly outweigh any benefits they might bring. With the casino market approaching maturity, and every state around Alabama offering some type of gambling, there would be little reason for tourists to consider Alabama casinos a worthwhile travel destination. Alabamians would be the target market of any casino placed in our state." John R. Hill, Alabama Policy Institute, February 2004

The Relationship of Ecological and Geographic Factors to Gambling Behavior and Pathology One of four published papers resulting from the largest national study to date, this presentation unequivocally demonstrates the damage created by having casinos nearby. Data collected shows, (1) A casino within 10 miles of home is associated with a 90% increase in the odds of being a pathological or problem gambler. (2) For every increase of one standard deviation in neighborhood disadvantage the odds of being a pathological or problem gambler increase by 69%. (3) For every additional form of legal gambling in his or her state, the respondent’s odds of having gambled in the past year increase by 17%. John W. Welte Research Institute on Addictions, Buffalo NY, September 19, 2003

National Gambling Impact Study Commission. Final Report. "20% of compulsive gamblers attempt suicide" June 1999

When Gambling Comes to Town: How to cover a high-stakes story. What's a reporter to do? "You flat out ask them" if they make money off the industry, says The Wall Street Journal's Yoshihashi. Stephen J. Simurda.

Rhode Island Hospital and Miriam Hospital's Lifespan. The single most important reason legal gambling has become so incredibly profitable and popular ... is computerized video technology. This technology has produced the most addictive form of gambling in history: video gambling. For this reason, some people call video lottery terminals (VLTs) - video slots, poker, keno, and other games - the 'crack cocaine' of gambling." 2003

Florence, Oregon: Citizens Task Force Report on Casino Impacts. "First and most obvious, is the demand upon public safety services created by the change in activity. The community will change from being essentially a daylight to dark service provider to a twenty-four hour operation. There will be more people out and about, bringing with them the everyday (and worse) problems of traffic enforcement, accident reporting, DUII incidents, abuse, personal violence and the like, all of which are problems of people who are awake and about." October 6, 2003

OR - Adolescents Gambling in Oregon: Approximately 19% of adolescents (age 13 through 17) surveyed reported betting money at a casino at least once in their life and approximately 12% did so last year (1998). Children of parents who gamble are nearly twice as likely to be weekly or daily gamblers than children whose parents do not gamble. Adolescents whose parents gamble appear to be more likely to have started in grade school than children of non-gambling parents. Age of onset of problem gambling among adolescents may be decreasing in Oregon. Younger respondents (13 and 14 years old) were significantly more likely to report gambling in grade school than older respondents (15 to 17 years old). In addition, respondents who reported gambling in grade school were significantly more likely to be problem gamblers. (Matthew J. Carlson and Thomas L. Moore, 1998)

Tribal Casinos - and Their Impacts on a California Community. A focus on the Palm Springs area in the Coachella Valley and the casino operations of the Agua Caliente Band of Cahuilla Indians. A report prepared by the research department of the Hotel Employees & Restaurant Employees International Union, AFL-CIO for the Coachella Valley Coalition for Responsible Sovereignty, (Research Department of the Hotel Employees & Restaurant Employees International Union, AFL-CIO February 2003)

NCALG Letter to Gale Norton: Investigation into BIA's Tribal Recognition process. "Your internal investigation of the BIA will likely uncover abundant evidence of 'reservation shopping' by recognized tribes and unrecognized groups seeking BIA certification. You will also discover non-Indian individuals and corporations using our first citizens as sympathetic fronts to penetrate otherwise unwilling jurisdictions. This suspicious activity in most cases has nothing to do with legitimate claims to territories far from present habitations, but is motivated by the desire to extort concessions from states whose citizens and legislatures have opposed gambling."

The Impact of Casino Gambling on Bankruptcy Rates: A County Level Analysis. This research study shows the impact of casinos on individual and business bankruptcy rates over the decade of the 1990s. The study matches each casino county with a non-casino county according to U.S. Census region, household income, population and population density. Using simple descriptive statistics and regression analysis, the study estimates the impacts of casinos on bankruptcy rates. (Ernie Goss and Edward Morse, 2004)

Gambling expansion big loser in 2003. Gambling proponents attempted to legalize 45 expansions in 30 states in 2003, but grass roots anti-gambling forces won 42 of those battles and lost only 3. We beat them in the courts, in the ballot boxes, and in the capitals. (Tom Grey, NCALG, 2003)

WA - City of Marysville - Economic Impacts of Casino Development. Total fiscal loss, the combination of tax revenue leakage and public service costs, is projected to grow from as much as $1.3 million annually in 2003 to as high as $5.0 million annually in 2020. Revenue leakage will be the greatest factor (79% of total fiscal impacts). 2003

Rhode Island Special Commission on Gambling Final Report. This site features an extensive review of issues facing a state as it considers introduction of casino gambling. The study includes findings from other areas, and an extensive list of recommendations for minimum programs and safeguards to be funded if gambling is introduced. 2003

Rapid Onset of Pathological Gambling in Machine Gamblers. The gambling industry has been turned upside down in the past decade. Table games used to be the major revenue generators and “slots” the lesser. Now, machine gambling is the principle revenue generator, and with that comes much faster onset of addiction. If slots want to come to a racetrack or casino near you, this study is ample warning of what will happen and how quickly you will be damaged.

Earl L. Grinols, "Cutting the Cards and Craps: Right Thinking About Gambling Economics: "An economy that includes casino gambling is worse of by $156 per capita compared to the same economy where casino gambling is prohibited. These figures do not yet include any capital gains or price-related benefits of casinos. Following the literature on the benefits of major league sports teams, let us assume, therefore, that additional jobs due to casinos are associated with $750 in capital gains and price-related benefits to residents. $750 is the mid-point of the $0-1,500 range identified earlier. Would these benefits change the unfavorable cost to benefit ratio? The answer is probably not. To overcome the benefit-cost deficit in Table 1 through job creation would require 21 new jobs for every 100 adults in the population. Since labor force participation in the US is 67 percent, this means that casinos would have to cause the labor force to increase by 31 percent. Such a large increase is extremely unlikely. The conclusion is inescapable: Based on the numbers currently available, casino gambling fails a theoretically grounded, theoretically valid cost-benefit analysis." Earl Grinols, University of Illinois, Department of Economics, 21 December 2001

National Opinion Research Center Report: The availability of a casino within 50 miles is associated with about double the prevalance of problem and pathological gamblers. Report to the National Gambling Impact Study Commission, 1999

Time Magazine: Look Who's Cashing in at Indian Casinos: Hint: It's not the people who are supposed to benefit. An Investigative Report. 2002/2003, Time Magazine, by Donald L. Barlett and James B. Steele. Link to: on-line transcript of article.

Time Magazine Reporters: NPR Interview with Barlett and Steele: Fresh Air, 12/16/02. The two-time Pulitzer Prize-winning investigative reporters have written together since the 1970s for several major newspapers and magazines. Their latest piece covers Native American-owned casinos and appears in this month's Time magazine. Fresh Air with Terry Gross, is produced in Philadelphia by WHYY

The Case of the Casino Industry: "Their studies have suggested, fairly consistently, that more than 20% of compulsive gamblers has filed for bankruptcy as a result of their gambling losses." "... Phillips et al (1997) found that deaths in Las Vegas were 2.5 times more likely to be a result of suicide than deaths in other comparably sized metropolitan areas." "Among the forms of sickness associated with gambling or affected by it are depression, stress-related illness, chronic or severe headaches, anxiety, moodiness, irritability, intestinal disorders, asthma, cognitive distortions, and cardio-vascular disorders." "This category of costs includes therapy/treatment costs, unemployment and other social service costs (includes welfare and food stamps)." "Families of problem and pathological gamblers bear gambling-related costs of divorce, separation, spousal abuse and child neglect." Business Profitability Versus Social Profitability: Evaluating Industries with Externalities, The Case of the Casino Industry" By Earl L. Grinols, David B. Mustard

Social Costs of Pathological Gamblers: An Application for Marshall County, Ky. Provides an estimate of the total annual costs of pathological gamblers living in Marshall County, Kentucky. "The total cost associated with Marshall County's pathological gamblers is borne by all of the above mentioned groups within and outside of Marshall County: employers, hospitals, treatment centers, families, local, state and federal government and taxpayers." Mary Tripp Reed, March 2001.

Understanding the Economic Impact of Casinos in Missouri: These estimates show that the costs of problem gambling in Missouri in 1996, using conservative estimates of the probable increase in only the most severe problem gambling, likely range from $182 million to possibly as high as $728 million. Thus, the Leven-Phares study's conclusion that casinos contributed a net benefit of $543 million to the Missouri economy in 1996 must be revised to reflect the costs of problem gambling. Once these costs are subtracted, the Leven-Phares research would suggest at best a net benefit to the state of $361 million and at worst a net loss to the state of $185 million. And once the probable overestimates of economic benefits pointed out by Professor Feser are calculated and taken into consideration, the net benefit would be smaller and the net loss even higher. Understanding the Economic Impact of Casinos in Missouri, prepared for the U.S. Gambling Research Insitute by Robert Goodman and Edward Feser, October 14, 1998.

The Social Costs of Gambling in Wisconsin: "The product of legalized gambling, according to a top regulator, was a chemical substance that while internally generated, still existed as a real substance in the body as a result of gambling, and the substance progresses to the brain and can thereby affect mental activity, i. e., produce excitement." "So now we can ask: if the FDA was given the mind-altering “gambling drug” to analyze, would it legalize it? The answer is not easy. But the process it would follow in making a decision is clear. First, they would authorize extensive tests — initially on animals, but then on selected human beings." "Perhaps the gambling drug is completely safe for 80.2% of those taking it, but 19.8% show one or more side effects that suggest the use of the “drug” might be dangerous under the wrong conditions. Almost one percent of the population, and 1.4% of the users (gamblers), exhibit serious side effects. These side effects could potentially be life threatening, as this drug leads to widespread urges to commit suicide, and to perform socially unacceptable activities — to steal, write bad checks, cheat on insurance matters, miss work regularly." Wisconsin Policy Research Institute Report: The Social Costs of Gambling in Wisconsin, July 1996.

1996: The Economic Impact of Riverboat Gambling: The monetary impact on local areas in a 35-mile radius surrounding the casinos is very large, and very negative. The local areas lose $239.7 million a year from their economics. A typical riverboat with $100 million in annual revenues will result in a loss of $18,381,321 for the local economy. For every dollar lost gambling on an Illinois riverboat 18.4 cents is lost from the local economy. (J. Terrence Brunner, Statement before Chicago Metro Ethics Commission 1996)

Administration on Aging - Gambling and Older Adults: Gambling addiction is a significant problem in the United States impacting adults of all ages and their families. Until recently legal casino and sports betting were limited to two states. The traditional game of chance for seniors is bingo, a pastime that serves as a recreational event in many communities. The growth of riverboat and Indian casinos, state and national lotteries, and Internet access to off-shore sports and parlor betting, has dramatically increased access for all adults including seniors. Older adults are, perhaps, more vulnerable than other age groups given their greater dependence on fixed incomes and more limited ability to recover to secure debt or recover from gambling losses. U.S. Department of Health and Human Services, Administration on Aging.

Ontario - Public Health Perspective on Gambling: "In Atlantic City in 1982, the Medical Examiner's Office began compiling data on the number of deaths in the casino. Between 1982 and 1986, 398 people died. Eighty-three percent (83%) of the total number of fatalities were sudden cardiac deaths. Most of the victims were elderly white retired men who had previously diagnosed medical conditions. The authors of the study speculated that the stress of gambling activities may induce sudden cardiac death and recommended that all communities mandate that gambling establishments provide emergency health care services for their patrons."

Betting on Gambling: Potential Costs and Consequences for Pennsylvania: "The experience of states that have already legalized slots and casinos reveals that the much anticipated revenue to fund even the most well-intentioned government programs is a mirage that never fully materializes." (The Commonwealth Foundation, March 2003)

Gambling in the South: Implications for Physicians: "Problem gambling is strongly associated with substance abuse and with the diagnoses of substance abuse and dependency. Apriximately 50% of level 3 gamblers have a co-morbid diagnosis of substance abuse or dependency. Occupational hazards for the problem gambler are high, as well. Company time and money are abused for gambling; some of the abuse may escalate into illegal activities such as theft or loan fraud . Problem gamblers also accumulate staggering debts that often result in foreclosures on mortgages and bankruptcy." (Southern Medical Journal, September 2000)

Foxwoods Casino: Casino Impact on the Town of North Stonington, CT "Casinos may be nice to visit, but they are not nice live near! First, there is the tremendous increase in traffic, along with traffic comes litter, traffic violations including DWI, and speeding. Next, comes the increase Emergency Services Response Support for the increased traffic accidents and fatalities. Then, comes the dramatic increase in crime everything from theft and drugs to murder. So there is the need for increase in local and state law enforcement personnel and resources. In addition, you may find that local shoppers will avoid the high traffic area created around the casino contributing to the decline in local business and economy. Then comes the decrease in residential property value. Residential homes on main road or alternate roads leading to casinos tend to decrease in value 10 percent. Making it harder to sell and reducing the tax basis for the area." (Casino Impacts on North Stonington; Prepared by North Stonington Board of Selectmen; Nicholas H. Mullane, II; William N. Peterson; John M. Turner. Amended December 24, 2001) USPACT copy

A Casino’s Effects on the Local Economy: "Large social costs due to new pathological and problem gamblers and increased crime in the Industrial Avenue site local area will be generated. Within a 10-mile ring the economic drain will be $22 million annually and within a 30-mile ring the drain will be $157 million." (An Economic Analysis of the Industrial Avenue Site As a Casino Venue for the United Auburn Indian Community. William N. Thompson, Ph. D. January 2000) USPACT copy

Gambling and Problem Gambling in Mississippi - A Report to the Mississippi Council on Compulsive Gambling: "... the study also shows that there is a significant proportion of the adult population of Mississippi experiencing difficulties related to their gambling. We estimate that, at a minimum, there are presently 22,300 adult Mississippi residents expe-riencing severe difficulties related to their involvement in gambling." "Casino gambling accounts for over half of the reported expenditures on gambling reported in Mississippi." (Rachel A. Volberg, January 1997) USPACT copy

Dead Broke: How gamblers are killing themselves, bankrupting their families and costing Minnesota millions. In less than a decade, legalized gambling in Minnesota has created a broad new class of addicts, victims and criminals whose activities are devastating families and costing taxpayers and businesses millions of dollars. Many are people who had never previously broken the law, but who turned to robbery, forgery and embezzlement to support their habits. Thousands have ruined themselves financially, and a handful have killed themselves. Thousands more will live for years on the edge of bankruptcy, sometimes working two or three jobs to pay off high-interest credit-card debt. (Dead Broke, 1995, Minnesota Star Tribune - Special Project)

 

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