Although these studies differ in their approaches and vary in their contributions to advancing gambling-related economic impact analysis, they all emphasize the identification and measurement of costs, including costs related to pathological and problem gambling.
National Academies Press US ; The growth of legal gambling in the United States in recent decades has been fueled largely by increasing public acceptance of gambling as a form of recreation, and by the promise of substantial economic benefits and tax revenues for the communities in which the gambling occurs.
There is no question that legalized gambling has brought economic benefits to some communities; just as there is no question that problem gambling has imposed economic and social costs. The important question, from a public policy perspective, is which is larger and by how much. Clearly, to address this and related policy issues, the economic and social costs of pathological gambling need to be considered in the context of the overall impact that gambling has on society.
The benefits are borne out in reports, for example, of increased employment and income, increased tax revenues, enhanced tourism and recreational opportunities, and rising property values e. American Indian communities in particular, both on and off reservations, reportedly have realized positive social and economic effects from gambling "that far outweigh the negative" Cornell et al.
Gambling has also resulted in economic and social costs to individuals and families, as well as to communities, as discussed casino gaming in legalized state united this chapter. Such costs include gambling proble congestion, demand for more public infrastructure or services roads, schools, police, fire protection, etc.
To the extent that pathological gambling contributes to bankruptcy and bad debts, these increase the cost of credit throughout the economy. We use the term "costs" to include the negative consequences of pathological gambling for fort road casino hotel edmonton, their immediate social environments, and the larger community.
As we said, the fundamental policy question is whether the benefits or the costs are larger and by how much. This can in theory be determined with benefit-cost analysis. Complicating such analysis, however, is the fact gambling crwon casino melbourne and economic effects can be difficult to measure.
This is especially true for intangible social costs, such as emotional pain and other losses experienced by family members of a pathological gambler, and the productivity losses of employees who are pathological or problem gamblers. Beneficial effects can also be difficult to measure and, as with costs, can vary in type and magnitude across time and gambling casino casino google casino, as well as type of gambling e.
Ideally, the fundamental benefit-versus-cost question should be asked for each form of gambling and should take into consideration such economic factors as real costs versus economic transfers, tangible and intangible effects, direct and indirect effects, present and future values i.
Moreover, the costs and benefits of pathological gambling need to be considered in the context of the overall effects that gambling has on society. Few reliable economic impact analyses or benefit-cost analyses have been done, and those that exist have focused on casino gambling.
Consequently, the committee is not able to shed as much light on the costs of pathological gambling as we would have preferred. We hope, however, that the chapter lays out the issues for readers and provides some guidance to researchers venturing into this area. As discussed in Chapter 2the definition of pathological gambling includes adverse consequences to the individual, such as involvement in crime, financial difficulties, and disruptions of interpersonal relations.
According to the criteria presented in the Diagnostic and Statistical Manual of Mental Disorders DSMa pathological gambler may be and often is defined by the presence of cheating slot machines legally least a few of these consequences American Psychiatric Association, Discussions of the costs to the individual of pathological gambling would be circular if we claimed to "discover" these consequences.
Instead, we focus on the magnitude and the extent to which pathological gamblers experience these adverse consequences. The literature on individual costs of pathological gambling considers consequences for the gambler and those with whom the gambler has most frequent interactions, including family, friends, and close associates. The literature focuses primarily on crime, skill games gambling difficulties, and disruptions of interpersonal relations.
Like the research on risk factors discussed in Chapter 4because most of these studies are based on treatment populations with small samples and no controls, we urge caution when interpreting the results. Many families of pathological gamblers suffer from a variety of financial, physical, and and problems Abbott et al. The financial consequences of living with a pathological gambler can range from bad credit and legal difficulties to complete bankruptcy.
Lorenz and Shuttlesworth surveyed the spouses of compulsive gamblers at Gam-Anon, the family component of Gamblers Anonymous, and found that most of them had serious emotional problems and had resorted to drinking, smoking, overeating, and impulse spending. In a similar study, Lorenz and Yaffee found that the spouses of pathological gamblers suffered from chronic or severe headaches, stomach problems, dizziness, and breathing difficulties, in addition to emotional problems of anger, depression, and isolation.
Jacobs and colleagues compared children who characterized their parents as compulsive gamblers with those who reported their parents as having no gambling problems. Children of compulsive gamblers were more likely to smoke, drink, and use drugs. Furthermore, they were more likely to describe their childhood as unhappy periods of their lives. Pathological gamblers are said to distance themselves from family and friends, who are alternately neglected and manipulated for "bailouts" Custer and Milt, The ultimate relationship costs to the gambler typically become manifest when the gambler reaches a stage of desperation or hopelessness.
Lesieur and Rothschild found that children of pathological gamblers frequently reported feelings of anger, sadness, and depression. Bland and colleagues estimated that 23 percent of the spouses and 17 percent of the children of pathological gamblers were physically and verbally abused. These percentages vary somewhat across studies.
Lorenz and Shuttlesworth estimated that 50 percent of spouses and 10 percent of children experienced physical abuse from the pathological gambler. Research has not examined the nature and extent of the gambler's retrospective perception of losses with regard to children, friends, and family members. However, Frank and colleagues have suggested that dysfunctional family relationships bear on a pathological gambler's tendency toward self-harm.
As discussed earlier, as gambling progresses toward a pathological hotels near cypress bayou casino, there is frequently a corresponding increase in depression, social, and guilt. Research suggests that as many video slot casinos 20 percent of persons in treatment for or diagnosed with pathological gambling may attempt suicide Moran, ; Livingston, ; Custer and Custer, ; McCormick et al.
In a national survey of Gamblers Anonymous members, those assessed as being at highest risk for suicide were more likely to be separated or divorced 24 percent and to have relatives who gambled or were alcoholic 60 percent. About 17 percent of gamblers who considered suicide, and 13 percent of those who had attempted it, had children with some type of addiction.
Financial losses pose the most immediate and compelling cost to the gambler in the throes of his or her disorder. As access to money becomes more limited, gamblers often resort to crime in order to pay debts, appease bookies, maintain appearances, and garner more money to gamble Lesieur, ; Meyer and Fabian, Several descriptive studies have reported widely ranging estimates of the proportion of pathological gamblers who commit offenses and serve prison terms for such offenses as fraud, stealing, embezzlement, forgery, robbery, and blackmail Bergh and Kuhlhorn, ; Blaszczynsi and McConaghy, a, b; Lesieur and Anderson, ; Schwarz and Linder, ; Thompson et al.
Still, when gambling establishments come to economically depressed communities with high rates of unemployment, as is the case with riverboat casinos in Indiana, there may be, in addition to the costs, social benefits to providing job training and jobs to the previously unemployed. Blaszczynski and Silove noted that criminal behaviors among adolescent gamblers may be more prevalent than among adult gamblers, ohio st qb gambling part because youths have few options for obtaining funds and greater susceptibility to social pressure among gambling peers.
In the United Kingdom, Fisher reported that 46 percent of adolescents surveyed stole from their family, 12 percent stole from others, 31 percent sold their possessions, and 39 percent gambled with their school lunch or travel money. Two studies attempted to gambling theft by problem gamblers, one in Wisconsin Thompson et al.
These studies came to widely differing estimates of the magnitude of theft, probably because of methodological differences, social and economic views of gambling. In an Australian study Blaszczynski and McConaghy, amost of the gamblers reported using their wages to finance gambling, supplemented by credit cards san diego school of casino dealing This study did not provide a comparison, however, of differences between the financing of gambling and other household expenditures.
In Canada, Ladouceur et al. Another cost to the pathological gambler is loss of employment. Roughly one-fourth to one-third of gamblers in treatment in Gamblers Anonymous report the loss of their jobs due to gambling Ladouceur et al. One study estimated that more than 60 percent of those surveyed lost, on average, more than seven hours of work per month Thompson et al.
Bankruptcy presents yet another adverse consequence of excessive gambling. In one of the few studies to address bankruptcy, Ladouceur et al. Published news accounts, bankruptcy court opinions, and bankruptcy social and serve as the primary reporters of the effects of gambling on bankruptcy. These accounts, however, are often region-specific, anecdotal, and poorly documented. In summary, although the research in this area is sparse, it suggests that the magnitude and extent of personal consequences on the pathological gambler and his or her family may be severe.
These destructive behaviors contribute to the concern about pathological gambling, and the need for more research to understand its social cost to individuals, families, and communities. A wide variety of economic techniques is available to assess the effects of new or expanded gambling activities. What seems to be a straightforward economic views of identifying benefits and costs associated with legalized gambling and with pathological and problem gambling is really more difficult than it first appears.
Not surprisingly, most reported economic analysis in the literature is methodologically weak. In their most rudimentary form, such studies are little more than a crude accounting, bringing together readily available numbers from a variety of disparate sources. Among studies of the overall effects of gambling, such rough-and-ready analyses are common. In the area of gambling, pathological gambling, and problem gambling, systematic data are rarely to be found, despite considerable pressure for information.
The consequence has been a plethora of studies with implicit but untested assumptions underlying the analysis that often are either unacknowledged by those performing the analysis, or likely to be misunderstood by those relying on the results. Not surprisingly, the findings of rudimentary economic impact analyses can be misused by those who are economic views aware of their limitations.
When properly done, however, economic impact and benefit-cost analyses can be powerful policymaking tools. However, it requires an investment of time gambling money to operationalize, identify, measure, and analyze hollywood casino in chicago il benefits and costs. Many studies have social and economic views of gambling the categories of benefits and costs associated with legalized gambling e.
But most studies have focused on the benefits and costs to the community rather than those that accrue to individual gamblers and their families, or to other individual members or groups in the community. In fairness, this gambling probably attributable to the difficulty of measuring benefits and costs in complex areas like pathological and problem gambling.
Analytic factors contributing to this difficulty are described below in general and later described in specific examples taken from the literature. One of the biggest stumbling blocks in economic impact analysis is determining which effects are real and which are merely transfers. For example, when a person borrows money to take a trip involving social or recreational gambling, the money borrowed is not a cost to society. Rather, the person is transferring consumption from the future, when the debt will be repaid, to the present, in much the same way as when he or she borrows money to purchase a new car.
Thus, money is transferred from the future to the present through a lender, who is willing to forgo present consumption when the loan is made, in exchange for future consumption when the loan is repaid with interest. Conversely, there may be situations in which what appears to be a benefit is also a transfer. For example, the money spent by recreational gamblers at a casino is an indication of income generated in the community as a result of the casino.
To the extent that the money comes from recreational gamblers who live in other communities, such money represents a real benefit to the casino and the community in which the gambling occurred. However, some of the money spent in the casino by local residents is not an economic benefit, but merely a transfer within the community.
Had the casino not been in their community, some of the money local residents spend on gambling would probably have been spent on other locally available entertainment or recreation e. In addition, some of the money spent on gambling may be paid to suppliers, as well as gambling establishment owners or investors from outside the community, in which case the benefits ''leak" into other communities. Transfer effects are notoriously difficult to identify. McMillenfor example, provides an excellent discussion of some of the challenges associated with the identification and valuation of benefits and costs associated with casino gambling in Australia.
McMillen points out that economic impact studies often fail to explain the potential for one expenditure to displace another. Construction and gambling expenditures often are treated as net additions to the community, but this is too simplistic an approach. The real question is what else might have been done with gambling resources used to construct the casino. If, for example, the construction dollars would have been spent elsewhere in the community had the casino not been built, then gambling construction expenditure is merely a transfer and not an influx of new dollars into the community.
McMillen further argues that the economic impact of a casino should be evaluated as one would evaluate a question of foreign trade. A casino may at first glance appear to benefit its community.The social costs of gambling are “hidden” only to the extent that reasoning can be applied to other sorts of changes in the economic environ- ment—like . view. First, reporting the number of employees that a casino hires does not take into. differentiate between the “true” social costs related to pathological gambling, and other . theory that forms the basis for the economics definition of social cost. The views expressed in this report are those of the researchers and .. A recent symposium on 'The socio-economic impact of gambling' held in. Canada in.