Gambling Revenues from Compulsive Gamblers

Gambling interests frequently refer to themselves as the "gaming-entertainment" industry and contend that they earn their money merely by providing another form of recreation to the consuming public. Gambling, however, differs from legitimate forms of entertainment in that it is heavily reliant on revenues from individuals with a psychological disorder, as categorized by the American Psychiatric Association. Though the industry has been predictably reluctant to release data in this area, preliminary research indicates that problem and pathological gamblers account for a phenomenal percentage of the roughly $50 billion in annual gambling revenues.

A 1997 study commissioned by the Connecticut Department of Revenue found that 47 percent of gambling patrons interviewed in that state were problem or pathological gamblers. The study included on-site interviews with more than 900 gamblers at casinos and parimutuel betting facilities. Nearly one-third of the gamblers surveyed met the criteria for pathological gambling. Meanwhile, a phone survey of Connecticut residents, also conducted as part of the Department of Revenue study, found a pathological gambling rate of only 1.2 percent in the general population. (WEFA Group, "A Study Concerning the Effects of Legalized Gambling on the Citizens of the State of Connecticut," Prepared for State of Connecticut, Department of Revenue Services, Division of Special Revenue, June 1997, p.8-3.)

Henry Lesieur, president of the Institute for Problem Gambling and a recognized authority in the field of gambling addiction research, examined data from existing surveys of gambling behavior in Canada and the United States. Lesieur concluded, based on this self-reported data, that 30.4 percent of gambling revenues (lotteries, casinos, pari-mutuel wagering, sports betting, etc.) in these seven states and provinces came from problem and pathological gamblers. (Henry R. Lesieur, "Measuring the Costs of Pathological Gambling," Revision of the presentation to the Tenth International Conference on Gambling and Risk Taking, Montreal, Quebec, June 1997.)

University of Illinois economist Earl Grinols has calculated that 52 percent of casino revenues come from active problem and pathological gamblers. Grinols based his calculations on data regarding the prevalence of problem and pathological gambling in the general adult population, the amounts lost to gambling by those with gambling problems, and the distribution of gambling losses among the population. (E. L. Grinols and J. D. Omorov, "Development or Dreamfield Delusions?: Assessing Casino Gambling's Costs and Benefits," The Journal of law and Commerce, University of Pittsburgh School of Law, Fall 1996, pp.58-60.)

After a two-month investigation into video poker machine operations by the Oregon State Lottery, the Portland Oregonian concluded: "Problem gamblers are providing a huge share -- perhaps even a majority of the more than $200 million in profits raised by video poker each year." (Jeff Mapes, "Gambling on Addiction," Oregonian, March 9, 1997, p. 1A.)

University of Minnesota researchers calculated that a mere 2 percent of gamblers account for 63 percent of all the money legally wagered in Minnesota. (D. J. Tice, "Big Spenders," Saint Paul Pioneer Press (Special Reprint Section), February 1993.)

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