Welcome to IssuesPA
IssuesPA
IssuesCandidatesedebatesEventsVoting InfoPublicationsNews RoomAbout IssuesPAAbout IssuesPA
A nonpartisan online issues magazine
Raising the Issues
IssuesPA presents
e.thePeopleAbout | Login | Become a member | Donate | Free newsletter | Reply | Search
ArticlesPollsHelp
Conversations
Root Article
Gambling Addiction and Pennsylvania Revenue
posted 04/15, by Eric Prindle (viewed 554 times) | Scope : State (Pennsylvania)
Popularity : 4 (4 encourage, 0 discourage)
Relevance : 44
To what extent should Pennsylvania's funding of social services such as elder care and education be dependent upon the proceeds from state-sponsored gambling?
(14 votes, ended on 4/22/02)
More Dependent43 %
Less Dependent36 %
No Change21 %
Unsure0 %
Don't Care0 %
  More polls
Excerpted from the Statement of Michael Morrill
Gambling Addiction and Pennsylvania Revenue
April 12, 2002

It's Friday. At 5:00 this evening, in communities across Pennsylvania, a weekly ritual will take place. At corner stores in Harrisburg, bodegas in Philadelphia, delis in Scranton, and neighborhood restaurants in Pittsburgh, people will be lined up, with their paychecks in hand, ready to plunk down their hard-earned money for a chance at the American Dream. Mostly poor and moderate-income working people, these dreamers are chasing the only option offered to them in Pennsylvania -- a chance to break out of poverty by winning millions. Unfortunately, our economy offers so little hope for working people that they are willing to take the odds (almost 40 million to one for the Super 6 jackpot).

Despite the denials of Lottery officials and politicians, the truth is that state-sponsored gambling targets and preys on the desperation of lower income Pennsylvanians. It has been called a tax on the poor, but I say it is really a tax on hope.

Gambling supporters will tell us that for most Pennsylvanians, the Lottery is simply an innocent diversion. A dollar here, a dollar there -- just some fun for a buck. That may be true for most lottery players, but the reality is that there are many more people who are pathological or problem gamblers than we want to admit.

Gambling depends on problem and pathological gamblers. A recent study done for the state of Connecticut showed that 50 percent of lottery sales come from 5 percent of the ticket buyers. In Pennsylvania, lottery sales have reached $1.8 billion dollars annually. That works out to $150 for every person in the Commonwealth, or about $500 for every household. That figure is almost double the national average of $80 per capita. Studies have shown that about 50% of the population buys lottery tickets. That means that about 300,000 people in PA purchase $900,000,000 in lottery tickets, or about $3,000 per person. That level of gambling is hardly an innocent diversion.

What makes these statistics even more shocking is that the people who purchase lottery tickets are those who can afford it the least. The poorest Pennsylvanians spend the highest percentage of their incomes on chasing this illusion created by the Commonwealth.

Now the old party triumvirate seeking the governor's office in Pennsylvania has united in their support of even more gambling in Pennsylvania. Mr. Fisher and Mr. Casey see no problems with turning Pennsylvania's racetracks into casinos, while Mr. Rendell wants to float full-fledged casinos on every puddle in the state.

The problems associated with the lottery are nothing when compared to casinos. Casinos depend even more heavily on problem and pathological gamblers. Studies have shown that over half of the revenues generated by casinos come from problem and pathological gamblers. In Iowa, only 1.7% of the population were gambling addicts in 1989. In only a few short years after the introduction of floating casinos, the rate tripled to 5.4%.

The greatest increase in gambling addiction is among our youth. Some studies have shown rates of gambling addiction as high as 10% in teenagers. Gambling is now the fastest-growing teenage addiction, with the rate of pathological gambling among high school and college-age youth about twice that of adults.

State-sponsored gambling obviously has serious consequences. But the consequences are wider and deeper than the problem of addiction. With increased gambling comes increased crime. Crime rates are significantly higher in areas that have casinos.

Gambling is also bad for small businesses. In Atlantic City, the number of small, independent restaurants dropped from 48 when casinos first moved in to only 16 in 1997.
  Was this article informative? Was it stimulating?
You decide if others should read it.
Presence List
0 members and 1 guest are on "Gambling Addiction and Pennsylvania Revenue" right now

Article: Gambling Addiction and Pennsylvania Revenue
Continued
posted 04/15, by Eric Prindle (viewed : 245)
Popularity 6 (1 encourage, 0 discourage)
Natchez, Mississippi saw 70% of its retail businesses reporting decreased sales after the first casino moved in. South Dakota saw statewide losses in the retail sector of $60 million in the year after legalized gambling arrived.

The reasons are obvious. People only have a limited amount of money to spend. If people spend their money at the casinos, there will be less money for a night out at the movies, or a family meal at the local restaurant or that new pair of running shoes.

Most of the money spent in casinos comes from the local economy. Gambling promoters will suggest that casinos will become tourist attractions, bringing in new money to the local economy. The experience from other states belies that claim. Casinos in Illinois get 85% of their money from people who live within 50 minutes of the casino. Iowa casinos got 94% of their business from in state. Likewise in Missouri, 88% lived within 45 minutes of the casino.

Gambling promoters will also cite new jobs as casinos come to town. The reality is very different. The community hosting the casino will lose 1-2 jobs for every job created by the casino. As local stores and restaurants lose business, they cut jobs.

In short, if you add all of the supposed benefits of gambling and compare it to the economic and societal costs, it will cost Pennsylvania somewhere between $3 and $7 for every dollar in gambling revenue.

Pennsylvania is facing an economic decision of serious proportions. The Lottery is no longer able to provide the funding necessary to maintain some very important programs. In 1971, when the Lottery began, it was to provide tax relief for the elderly. As revenues grew, it expanded to provide rental and transportation assistance, money for the Area Agencies on Aging and prescription drug coverage for the elderly. As costs have increased and revenues have stagnated, the Lottery finds itself unable to pay projected costs. These are important programs that demand continued funding.

The old party solution is to target the poor once again and increase gambling. All three old party candidates are proposing the expansion of a system that hurts poor people, small businesses and the economy as a whole. In gambling parlance, this is called "chasing." Chasing is a common symptom of the pathological gambler who seeks to make up gambling losses by taking ever-increasing risks.

The Morrill/Smedley solution is to accept the costs of the programs we want to fund and rely on traditional means of funding-taxes and fees. If programs are important enough to fund then we should bite the bullet and pay the costs collectively. We should not tax hope by offering dreams of wealth at astronomical odds.

The Morrill/Smedley economy will be a growing economy that will increase revenues through higher wages for working people and more taxes generated by new businesses created by our economic initiatives. The Morrill/Smedley budget will eliminate corporate welfare and will institute a more equitable and just taxation system that will protect working people and generate more income.
A better economy and more equitable taxation-that's the solution to Pennsylvania's gambling addiction.

In closing, let me suggest to Ed, Bob and Mike that perhaps you might want to call the Pennsylvania Gambling Hotline. You seem to exhibit the warning signs associated with compulsive gambling. So we've made copies of the PA Lottery's Compulsive Gambling brochure for each of you. We care about you and want to help you with your addiction to gambling, so you will stop hurting those you love, the People of Pennsylvania.

(From the brochure)

How do you know if you or someone you care about has a problem? Here are some warning signs to look for:
¿ Denying there is a problem
¿ Lying about where the money is going
¿ Borrowing money to gamble or pay off debts
¿ Taking time off work to gamble
¿ Losing touch with friends
¿ Looking for the "high" that comes from gambling
What will come?
posted 04/24, by LGrow (viewed : 173)
Popularity 6 (1 encourage, 0 discourage)
I admit, I am a bit unclear as to what specifically would be legalized as far as gambling goes. I do understand the concern about casinos, but addiction aside, personally I am more concerned about racetracks, specifically dog tracks. My family adopts racing greyhounds, and due to thier treatment on the tracks they have both physical and psychological problems. I hope that Pennsylvania, a state well known for saving these dogs and placing them in good homes, will not become another state to encourage their mistreatment.
Don't misunderstand; I have no desire to trivialize the very real problem of gambling addiction. I simply want to know what kinds of gambling will be introduced, and speak for a moment against dog racing in our great state. Thank you.
Article: Gambling Addiction and Pennsylvania Revenue
Gambling, Taxes and Choice
posted 04/23, by mdc795 (viewed : 243)
Popularity 5 (1 encourage, 1 discourage)
I don¿t doubt the original poster¿s sincerity in exposing one of the negative consequences of the state lottery. I think that it¿s an unfortunate choice for 5% of the people to pay for 50% of the lottery revenues.

It¿s not clear if the original poster is opposed to gambling or to too few government programs to combat gambling addiction. If it were the latter, then maybe it would be cheaper to have no government anti-gambling programs, but more winners with smaller payouts.

Seriously, the underlying issue is one of choice -- not engineering public behavior. No one is forcing people to gamble with their money. After all, it¿s not like taxes. With taxes you pay under threat of government force. With taxes you pay as a penalty on your own industriousness. With taxes you pay for things you may not even want or don¿t even believe in. With taxes you don¿t have a choice.

Let me suggest that before we focus too much attention on saving gamblers from themselves, let¿s first consider saving the state taxpayers from state taxes and state government spending. If we don¿t, it¿s a safe bet that we¿ll all lose even more.

MDC
Pittsburgh, PA
Article: Gambling Addiction and Pennsylvania Revenue
Gambling
posted 04/30, by JoeKleppick (viewed : 212)
Popularity 4 (0 encourage, 1 discourage)
I agree with Mr.Rendell on using the slot machine money for the school districts that are in distress in this state.

Im 16 years old but when I run for Governor I want more gambling in all of the counties in this state.
Top Articles in IssuesPA
Current theme: IssuesPA
 Search 
Layer 4Layer 3Layer 2Layer 2Layer 2
Frustrated with politics-as-usual? Join a growing community of citizens committed to thoughtful dialogue and meaningful grassroots participation.
Contact UsLearn MoreBecome a Member
Copyright 2003, e-thepeople. All rights reserved. Site Policies

Home | Issues | Candidates | eDebates | Events | Voting Info | Publications | News Room | About IssuesPA
© 2002 Pennsylvania Economy League. Use of this site constitutes agreement to our site policies.