Gambling and Recreation
Gambling Introduction
The National Gambling Impact Study Commission (NGISC) warned
that gambling is growing so fast that it may be surpassing the ability
of federal and state authorities to control it. (from CQ researcher)
State-run lotteries, casinos and other legal gambling operations
took more than $63 billion from bettors in 2001. (CQ researcher)
All but two states allow gambling as of 2001.
Lottery – Some General Information
• In 1973, just seven states had lotteries, with total
revenues of $2 billion; by 2001, they were operating in
38 states and the District of Columbia, generating more
than $17 billion. (CQ researcher)
• The national gambling panel found that annual percapita spending on lottery tickets jumped from $35 in
1973 to $150 in 1997; it was $123 in 2002. (CQ
researcher)
Lottery – Positive Effects
• State sponsored lotteries are a good way for local
governments to raise revenue
• Lotteries are often easier to “sell” to the public than a
raise in taxes
• Mark Zamarippa, director of the Colorado state lottery,
stated that local lotteries helped the state raise “over
$1.3 billion for the causes that we have here in
Colorado” (CQ researcher)
• These lotteries will also provide funding for state
sponsored recreation and leisure service providers – The
state of Colorado and Minnesota allot some of the lottery
money to the Parks and Recreation and Environment
and Natural Resource divisions.
Lottery – Positive Effects
• State sponsored lotteries help to provide money for
education
• Here in TN, we have the HOPE Lottery scholarship,
which gives up to $3,800 per year for a four year
institution.
• In the future, state sponsored lotteries will continue to
allow students of lower socio-economic statuses to
attend a college university and receive an education.
• Although the lottery endorses a “taboo” form of
recreation, the positive aspects of increase in education
outweigh the negative; it will create more educated
people in our world.
Lottery – Positive Effects
• Frank Fahrenkopf, President of the American
Gaming Association, even stated that “The
National Gambling Impact Study Commission,
which was made up of a bunch of people
opposed to gambling, made very clear that [the
lottery] doesn't increase crime.” (CQ researcher)
Lottery – Negative Effects
• The Lottery targets the middle and lower classes.
• It drains most if not all of their disposable income,
sometimes even more than the family can afford.
• The Lottery doesn’t contribute much to education –
According to David Gale, executive director of the North
American Association of State and Provincial Lotteries,
“What happens is, the legislature budgets this much for
education. They see the lottery will contribute this much.
So they take the money they would have spent on
education and put it to other uses.”
• The Lottery hurts the economy because when people
spend more than they can afford on the lottery they go
bankrupt.
• 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.
Lottery – Negative Effects
• Impacts on Recreation and Leisure:
• The lottery separates economic levels
• This along with government budget cuts could impact recreation and
leisure services.
• States with lotteries for the most part have higher bankruptcy rates.
• Future Impacts on Recreation and Leisure:
• Money that could go to zoo’s or parks never make it.
• Billions of dollars a year go to the lottery, most of which is
dispensable money, money that could be used in recreation and
leisure services.
• Money that used to go to recreation leagues goes to the lottery.
Lottery – Negative Effects
• Possible Solutions to the Problem:
• Eliminate the lottery altogether
• There should be a limit to how many tickets someone
can purchase per week
• This would help keep money in the family’s dispensable
income
Casinos – Some General Information
• Casino gambling expenditures increased by
4.4%, from $472 million to $493 million from
2005-2006, a number which continues to rise
(Dept. of Internal Affairs)
As of 2001, casino revenues nationwide
surpassed $25 billion.
Casinos – Positive Effects
• Gaming clubs contribute funds upwards of $250
million to their local communities
• Casinos allow property taxes to be cut for local
residents
• Casinos fund local services such as fire
protection, public sewer systems, civic buildings,
levees, and giving further support to local parks
and recreation groups.
Casinos – Positive Effects
• A single casino may employ up to 2,100 people
– recreation and leisure service providers have
more jobs.
• In counties hosting casinos, injuries due to crime
are lower than the state average. This also
applies to surrounding counties.
Casinos – Negative Effects
• Social Problems:
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•
•
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Crime
Prostitution
Family strife
alcoholism
In a survey of 400 Gambler’s Anonymous members, 57%
admitted stealing to finance their gambling addiction,
averaging $135,000 per individual. (from the “National Gambling
Impact Study Commission Report,” June 18, 1999 )
Casinos – Negative Effects
• Impacts on Society:
• Increase in bankruptcy
• Children are not receiving a higher education
• Pathological gambler problems
5.4%(over 150,000) of Iowa citizens are
considered pathological or problem gamblers as
of 2006.
Discussion Questions
• Do you think state sponsored lotteries are a good way to
raise revenue for education and other government
services?
• Why is the lottery necessary? Why can’t we get rid of
the lottery altogether?
• Do you feel Nashville is a good city as it is, or could it be
made better with a casino?
• What type of environment do you picture when someone
mentions a casino?