Saturday, September 19, 2009

Illinois General Assembly, video gaming, and gambling information from the National Coalition Against Gambling Expansion


I’m changing direction this week. Although I plan more posts on healthcare nationalized, this week I’m going to cover the State of Illinois and its new push to increase revenue by allowing gambling/video gaming throughout the State.

The following is from http://www.ncalg.org/. Although the article deals more with gambling in general and casinos in particular, the content is also relevant to video gaming. In fact, maybe more so. Some authorities have labeled video gaming as the “crack cocaine” of gambling—even more addictive than other types of gambling.

For your information: Some of the links do not lead to the appropriate website. I had difficulty keeping some of the links alive when I transposed them—specifically the footnotes in the body of the story. The footnote references are at the end of the article and all those links should work. The article put into my format:

“Legislators from Gambling States challenged to follow Founders:
NCAGE (National Coalition Against Gambling Expansion—my addition) national spokesman and field director Tom Grey addressed the winter 2008 meeting of the National Council of Legislators from Gambling States. Read the prepared speech

NCAGE field coordinator Tom Grey debated Frank Fahrenkopf in Cleveland just before the November 2006 elections. Fahrenkopf is CEO for the American Gaming Association, and thus stands as the leading national spokesman for commercial casinos.

But would Fahrenkopf want one of his products in his own home town? Here’s his comment:

‘People have the right to go to the ballot box and determine what they want the quality of life to be in their own area. Now if someone were to come along and tell me that they were going to put a casino in McLean, Virginia, where I live, I would probably work very, very hard against it. I just don’t—what’s the old saying, ‘NIMBY, not in my back yard?’ Now I may be in favor of gaming, but I just don’t want it located in a particular area.’—AGA CEO Frank Fahrenkopf in Cleveland, Ohio, Oct. 24, 2006See and hear it for yourself! (Windows Media File)

The National Coalition Against Gambling Expansion (NCAGE) has a new web log site to discuss gambling topics. The site is powered by TypePad, one of the nation’s leading ‘blog’ hosts. You can log in at http://ncage.typepad.com/bets_off_blog/

“Real costs for everyone

Gambling costs more than raising taxes, even for those who NEVER gamble! Each compulsive gambler costs the economy between $14,006 and $22,077 per year.[i] If 2% become addicted, that’s $280 to $440 per year paid by every other citizen.

Trading jobs kills development

Most casinos attract 80% or more of their market from a 35-50 mile radius. Casinos absorb existing entertainment, restaurant and hotel business, and deplete dollars available to other retail businesses. That destroys other jobs in the trade area and eliminates their sales, employment and property tax contributions.[ii]

Illegal gambling remains

Legalizing gambling does not reduce illegal gambling.[iii] Legalized gambling may even increase illegal gambling because untaxed illegal operators may offer better odds, bigger payoffs and loans that legal operations cannot. Patrons in gambling states feel gambling is generally legal and they are less averse to gambling in unlicensed establishments. Law enforcement in gambling states see illegal gambling as a state revenue issue rather than a criminal activity, and may be less motivated to investigate.

Gambling brings addiction

When gambling appears in a community, it brings a wave of addiction. In a mature gambling market, compulsive gambling typically seizes the lives of 1.5% to 2.5% of the adult population. That amounts to three to five times the number of people suffering from cancer. (The former mayor of Pekin, which is the largest community in Tazewell County where Morton (my town) is located, was convicted for illegally using a Pekin city credit card—misuse of government funds—at one of Illinois’ riverboat gambling casinos which is also located in Tazewell County but not on (It is next to the river.) the Illinois River—thus not technically a riverboat casino. But then, isn’t that just a technicality?—my addition)

‘Gambling is an addictive behavior, make no mistake about it . . . Gambling has all the properties of a psychoactive substance, and again, the reason is that it changes the neurochemistry of the brain.[iv]

The American Psychiatric Association says between 1% and 3% of the U.S. population is addicted to gambling, depending on location and demographics.[v] Youth have even higher addiction rates, between 4 an 8%.[vi]

Proximity and poverty matter

Addiction rates double within 50 miles of a casino. [vii] Probable pathological gambling in Nevada in 2000 measured 3.5%. Other states ranged from 2.1% in North Dakota in 2000 to 4.9% in Mississippi in 1996.[viii] A casino within 10 miles of a home yields a 90% increased risk of its occupants becoming pathological or problem gamblers. Neighborhood disadvantage increases that risk another 69%.[ix] Slots and other gambling machines push susceptible players to the pathological level in an average of 1.08 years, vs. 3.58 years with more ‘conventional’ forms of table and racetrack gambling.[x]

Gambling doubles bankruptcy

It takes three to five years for gamblers in a newly opened market to exhaust their resources. When addiction ripens in the market, so do the social costs.

The most recent study of all the casino counties in the nation confirmed personal bankruptcy rates are 100% higher in counties with casinos than in counties without casinos. [xi]

Gambling increases crime

Desperate to ‘chase’ and recover gambling losses, pathological gamblers often turn to crime. Fraud and embezzlement become common among formerly hard-working and highly trusted people. Violent crimes also increase. Three years after the introduction of casinos in Atlantic City, there was a tripling of total crimes. Per capita crime there jumped from 50th in the nation to first.[xii] Comparing crime rates for murder, rape, robbery, aggravated assault, burglary and motor vehicle theft reveals Nevada is the most dangerous place to live in the United States. [xiii]

Expect Suicides

A study of addicted gamblers revealed, ‘Between 20% and 30% of the respondents made actual suicide attempts. No other addictive population has had as high a prevalence for attempts.[xiv] Nevada has been the highest in the nation for suicides for 10 of the last 12 years.[xv]

[i] Grinols, Earl L., “Cutting the Cards and Craps, right thinking about gambling economics.” P. 14.

[ii] Grinols, Earl L. Gambling in America, Costs and Benefits, p.p. 55-92.

[iii] Abt, Vickie, Ph.D., Univ. Penn. Cited in Executive Summary, Casinos in Florida: An analysis of the Economic and Social Impacts, for the Florida Office of Planning and Budgeting

[iv] Shaffer, Howard, Harvard University addictions department, quoted by Kindt in Managerial and Decision Economics, 22: p. 17-63

[v] American Psychiatric Association, DSM-IV, P.673.

[vi] Shaffer, H.J. & Hall, M.N. (1996). Estimating prevalence of adolescent gambling disorders: A quantitative synthesis and guide toward standard gambling nomenclature. Journal of Gambling Studies, 12, 193–214.

[vii] National Gambling Impact Study Commission, “Final Report” Sec. 4, p...5.

[viii] Volberg, Rachel A., Ph.D. “Gambling and Problem Gambling in Nevada: Report to the Nev. Depart. of Human Resources,” p. iii.

[ix] Welte, John W.; Wieczorek, William F.; Barnes, Grace M.; Hoffman, Joseph H. Reference cited in “The Relationship of Ecological and Geographic Factors to Gambling Behavior and Pathology” p.15

[x] Breen, Robert B. and Zimmerman, Mark; “Rapid Onset of Pathological Gambling in Machine Gamblers” p.2

[xi] Gross, Ernie and Morse, Edward. “The Impact of Casio Gambling on Bankruptcy Rates: A County Level Analysis.) p. 1

[xii] Schwer, R. Keith; Thompson, William N.; Nakamuro, Daryl; “Beyond the Limits of Recreation: Social Costs of Gambling in Southern Nevada.” p. 4

[xiii] Morgan Quitno Press, “Determining the Safest and Most Dangerous State Rankings” http://www.governmentguide.com/community_and_home/where_i_live/factors.adp

[xiv] Widgery, Robin, President of Social Systems. “Warning: Legal Gambling is a Costly Game.” 1994 edition.

[xv] http://www.suicidology.org/

Did your Representative vote to increase gambling in Illinois? Why? Did your Senator vote to increase gambling in Illinois? Why?

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