Article

Gambling in America: Costs and Benefits

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Abstract

The public decision-making process governing the issue of casino gambling tends to lead to wrong outcomes, and the studies typically provided to justify the phenomenon are conceptually flawed. Seeking to describe what true economic development is, this study establishes the framework for a valid cost-benefit analysis to assess whether it actually occurs and its methods can be applied to the casino industry in America. Accounting for a wide range of economic and social factors, Earl Grinols concludes that the social costs of casino gambling considerably outweigh their social benefits.

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... Unfortunately, researchers (Philander, 2013;Grebliauskas, 2009; and others) often choose only the taxation system of the gambling sector as the object of research and the negative external effects caused by this sector are left only as a secondary object. Also, many scholars do not analyse the concept of social costs in their research and without examination choose social costs of gambling in their research accidentally (Goodman, 1994;Grinols, 2004;Chalaguine, 2018;and others). The economic concept of social costs was mainly analysed by Walker (2013) who tried to classify social costs into types and analysed social costs evaluated by other scientists. ...
... The gambling sector has been mainly analysed by researchers in the following respects: the social costs of the gambling sector to society (Walker & Barnett, 1999;Grinols, 2004;Blaszczynski et al., 2004;Walker, 2008;Coryn et al., 2008;Philander, 2013;Walker, 2013;Walker & Sobel, 2016;Chalaguine, 2018;Solferino et al., 2018), benefits of the gambling sector to the state economy (Grinols, 2004;Walker & Jackson, 2013;Chalaguine, 2018), taxation system of the gambling sector (Coryn et al., 2008;Alarie & Ingelman, 2008;Grebliauskas, 2009;Philander, 2013;Walker & Hodges, 2018), public gambling policy (Grebliauskas, 2011), the impact of gambling on personal bankruptcy (Boardman & Perry, 2007), gambling impact on criminality (Walker, 2008;Walker, 2010;Fiedler, 2013), responsible gambling (Blaszczynski et al., 2004;Walker et al., 2014). ...
... The gambling sector has been mainly analysed by researchers in the following respects: the social costs of the gambling sector to society (Walker & Barnett, 1999;Grinols, 2004;Blaszczynski et al., 2004;Walker, 2008;Coryn et al., 2008;Philander, 2013;Walker, 2013;Walker & Sobel, 2016;Chalaguine, 2018;Solferino et al., 2018), benefits of the gambling sector to the state economy (Grinols, 2004;Walker & Jackson, 2013;Chalaguine, 2018), taxation system of the gambling sector (Coryn et al., 2008;Alarie & Ingelman, 2008;Grebliauskas, 2009;Philander, 2013;Walker & Hodges, 2018), public gambling policy (Grebliauskas, 2011), the impact of gambling on personal bankruptcy (Boardman & Perry, 2007), gambling impact on criminality (Walker, 2008;Walker, 2010;Fiedler, 2013), responsible gambling (Blaszczynski et al., 2004;Walker et al., 2014). ...
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This article analyses the social costs of gambling sector in Lithuania. The aim of the research is to evaluate the change of gambling sector’s gambling gross revenue according to the established right to submit a request to self-exclude from gambling since May 1, 2017. The scientific problem of the research is how to define and evaluate gambling sector’s social costs. The analysis is conducted by evaluating dependency connection between gambling sector’s gambling gross revenue and gross domestic product taking into account the changing quantity of requests to self-exclude from gambling and current economic situation in Lithuania. The following methods are used for analysis: graphical analysis, paired correlation analysis and linear regression analysis. First of all, the conception of the social cost of gambling is being analysed in the article. Then using previously specified methods the relationship between gambling sector’s gambling gross revenue and gross domestic product in the country is evaluated. Using a linear regression equation, the model, showing how gambling gross revenue of gambling sector was expected to change in response to changes in the country's gross domestic product is obtained. According to gambling gross revenue for 2017-2019 the model reveals that gambling sector revenue, considering the change in gross domestic product, had a higher growth potential and the right to submit a request to self-exclude from gambling established in 2017 may have had a serious effect on slowing down the growth of gambling revenue.
... With multiple impacts external to the individual gambler, such social costs significantly overshadow gambling's purported benefits. Aside from state revenue, and the notion of consumer surplus (Grinols 2004), employment is frequently cited as a core benefit of gambling ). Yet the employment effects of gambling are low compared to other sectors (Grinols 2004;O'Neil et al. 2006). ...
... Aside from state revenue, and the notion of consumer surplus (Grinols 2004), employment is frequently cited as a core benefit of gambling ). Yet the employment effects of gambling are low compared to other sectors (Grinols 2004;O'Neil et al. 2006). By appropriating resources which would otherwise be expended elsewhere, gambling is an economically diversionary activity (Grinols 2004;PC 2010a). ...
... Yet the employment effects of gambling are low compared to other sectors (Grinols 2004;O'Neil et al. 2006). By appropriating resources which would otherwise be expended elsewhere, gambling is an economically diversionary activity (Grinols 2004;PC 2010a). Given that gambling expenditures are diverted from other sectors, it is possible that the employment effects may be negative. ...
Article
Background: Harms from gambling are considerable and widespread, impacting beyond the individual gambler. Asserting benefits, including supporting ‘good causes’ outweighs this harm, is a common legitimization tactic of commercial gambling. Identified as problematic on many levels, this is a global phenomenon. Using unusually transparent data, this research assesses the extent to which such contributions offset gambling harms. Methods: Commonly in Australian jurisdictions, not-for-profit gambling operators (clubs) qualify for gambling tax reductions. To qualify in the state of Victoria, clubs submit annual statements documenting that at least 8.33% of their net gambling revenue (NGR) supports community purposes. We examined community benefit records from three consecutive annual reporting periods (2012–2015). Results are presented in aggregate, and via specific case studies. Results: We identified significant over-valuation of 'community benefits'. Gambling tax deductions overwhelmingly (82%) went to operational expenses including wages, venue maintenance, capital costs and utilities. Contributions to charitable and philanthropic purposes represented 4.5% of all community benefit claims (1.5% of club NGR). Conclusions: Similar to other jurisdictions, Victoria’s community contribution arrangements provide limited actual community benefit. Doing little to offset gambling harm, demonstrated benefits largely accrue to specific sectional interests. Greater transparency and improved governance is required. This includes, reviewing tax exemptions, reviewing allowable claims, and greater compliance oversight. This research identifies multiple failings with a community benefit scheme operating in a relatively transparent manner. Research lessons may be of interest to policy makers and others wanting to ensure that gambling’s demonstrable harms are, indeed, offset by clear benefits to community, and to preventing gambling harm.
... Conflicting data found in casino industry literature highlight the challenges posed for researchers attempting to measure or evaluate the extent to which casinos economically impact host communities; such inconsistency in findings derived from collected data relates not only to the economic implications but also to other forms of societal impact (Grinols, 2004). From an economic perspective, labor markets, economic welfare, casino stock indexes, and state tax revenues have all been investigated to estimate both the positive and negative impacts of casinos on local economies (Grinols, 2004). ...
... Conflicting data found in casino industry literature highlight the challenges posed for researchers attempting to measure or evaluate the extent to which casinos economically impact host communities; such inconsistency in findings derived from collected data relates not only to the economic implications but also to other forms of societal impact (Grinols, 2004). From an economic perspective, labor markets, economic welfare, casino stock indexes, and state tax revenues have all been investigated to estimate both the positive and negative impacts of casinos on local economies (Grinols, 2004). However, complexities found in the collection of relevant economic data and difficulties experienced in the definition and validity about the appropriate search parameters have resulted in challenges in establishing the relationships between casinos and local host communities (Grinols, 2004). ...
... From an economic perspective, labor markets, economic welfare, casino stock indexes, and state tax revenues have all been investigated to estimate both the positive and negative impacts of casinos on local economies (Grinols, 2004). However, complexities found in the collection of relevant economic data and difficulties experienced in the definition and validity about the appropriate search parameters have resulted in challenges in establishing the relationships between casinos and local host communities (Grinols, 2004). ...
Thesis
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Investigation is conducted into how gaming volumes and casino employment were impacted within a non-destination gaming state in urban and rural counties by the 2007-2009 economic downturn in The United States of America. Examples of urban and rural areas are researched in order to determine if certain gaming locations within a non-destination gaming state can be determined as recession proof. Effort is directed to establish and measure the gaming volumes before, during, and after the recession and also in addition to the analysis of employment figures issues such as the impact of gambling on the social environment is also factored into the overall analysis and findings. Findings indicate that while there was a slight drop in gaming revenue and employment figures during this period, non-destination gaming locations such as Indiana proved relatively resilient to the recession but were more vulnerable to external factors such as emerging competition from neighboring states. Evidence suggests that the gaming industry located in urban areas was more likely to impact the urban employment environment during the 2007 to 2009 recession than was evident in the rural areas in which the gaming industry is located.
... Crime is defined as "an action or an instance of negligence that is deemed injurious to the public welfare or morals or to the interests of the state and that is legally prohibited. 6 " From the perspective of social policy, it is one of several costs that have been discussed with respect to gambling in general and problem gambling in particular. 7 Disentangling the effects of a given level of problem gambling from other addiction-related correlates of crime, however, requires data that includes individual gambling information, information about individuals' connection to other addictive characteristics, and information about their engagement with illegal activity. ...
... Using survey data to concurrently gather information on the degree of problem gambling as measured by a gambling screen plus information on addiction-related variables including alcohol, drug, and mental health status and use them to simultaneously quantify the impact of each on crime is the purpose of the present study. 6 This definition is from The Random House College Dictionary, Revised Edition, New York: Random House, 1982. 7 National Research Council (1999), Grinols (2004aGrinols ( , 2007, and New Hampshire Gaming Study Commission (2010) discuss the economic impact of gambling and problem gambling. ...
... 6 This definition is from The Random House College Dictionary, Revised Edition, New York: Random House, 1982. 7 National Research Council (1999), Grinols (2004aGrinols ( , 2007, and New Hampshire Gaming Study Commission (2010) discuss the economic impact of gambling and problem gambling. Grinols and Mustard (2006) focus on the impact of casino location, which presumably leads to increase in casino visitors, and crime. ...
Chapter
This research evaluates the connection between gambling and crime, simultaneously taking account of addiction-related mental health, alcohol, and drug use problems, using individual survey panel data collected on 4121 subjects over a period of 5 years. Pathological gambling is statistically significantly associated with elevated rates of crime and can be compared in its impact to substance abuse and mental health variables.
... Among the early contributions to the literature on the labormarket impacts of casinos are a variety of negative claims about employment and wages. For example, some authors have suggested that whatever jobs are created by casinos come at the expense of other industries, so that casinos are unlikely to produce a net increase in overall employment (1)(2)(3)(4)(5)(6). Others have suggested that casinos do not have any substantial impacts on average wages (7) or that casino jobs are Bbad jobs.M any of the early studies in this area were published with no substantive empirical analysis. ...
... However, most of the employment and wage benefits are confined to the hospitality and entertainment sector of the economy. 2 Recent findings in this area roughly support the previous literature. Using data from Canada, Humphreys and Marchand (11••) find positive labor-market benefits from casinos, but that they are relatively short-lived. ...
... The estimates vary greatly, ranging from around $2000 up to over $30,000 (2, 41-43). Grinols (2) summarizes many of the studies from the 1990s and concluded their average estimated social cost of gambling to be around $10,000. ...
Article
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Purpose of Review This paper is a review of the recent academic literature on the socioeconomic impacts of gambling. The purpose is to provide a review of the most recent contributions to the growing literature regarding the economic and social impacts of gambling, with a focus on casinos. We divide our review into two sections: economic impacts and social impacts. Recent Findings Better data availability across a wider set of jurisdictions has resulted in improved research quality in recent contributions to this literature. Summary The most recent literature in this area suggests that casinos often have at least a modestly positive economic impact on their host economies. It is more difficult to measure the social impacts, and the net social impacts of casinos remain unclear. The variety of conclusions from recent research suggests that the industry’s impacts vary with characteristics of the hosting state, country, or regional economy.
... The most comprehensive of the published labour market studies was that by Cotti (2013), which reports positive employment and wage impacts in casino-hosting counties. However, most of the employment and wage benefits are confined to the economy's hospitality and entertainment sector (Grinols, 2004). Wenz (2007) found a positive relationship between casinos and local house prices that was more pronounced in less densely populated areas. ...
... If the head of a family gambles and, as a result, the family suffers from bankruptcy, crime, personal health issues, loss of life, grief and bereavement, poor quality of life, stress related to crime victims and gamblers, or family problems such as divorce (D. Collins & Lapsley, 2003;Grinols, 2004;Grinols & Mustard, 2001;Nichols et al., 2002;Policy Analytics, 2006), and the amount of gambling is then reduced, significant related benefits will accrue. But these benefits cannot be bought, sold, or transferred to anyone else. ...
Article
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In this study, we modified the theory of planned behaviour and proposed that attitude towards gambling explains and predicts gambling support. We explored whether locals and tourists support or oppose the gambling industry and the factors that led to support or opposition. This information is vital, as policy decisions are often made by taking into consideration public support. Using a structured questionnaire, we gathered data from 385 respondents from Goa, a popular tourist and gambling destination in India. Through structural equation modelling, we found that most of the variance (87%) in support of gambling was explained by attitude. Perceived benefits and risks explained the significant variance (58%) in attitude towards gambling, as indicated in the theory of planned behaviour. The coefficients were significant except for the path from social risk to attitude, which was removed from the final model. The direct path from benefits and risk to support were not significant. In addition, the path from personal risk to attitude was moderated by the respondent’s gambling behaviour. Although gamblers had a more positive attitude with increasing personal risk, non-gamblers had a more negative attitude with increasing personal risk. This finding confirms the risk-seeking behaviour of gamblers. Résumé Cet article modifie la théorie du comportement planifié et avance que l’attitude à l’égard des jeux de hasard explique et prédit l’appui donné à ces jeux. L’étude vise à déterminer si les habitants et les touristes appuient l’industrie des jeux de hasard ou s’ils s’y opposent, et à cerner les facteurs menant à un appui ou à une opposition. Il s’agit d’une information de grande importance, car les décisions d’orientation prennent souvent en considération l’appui du public. Des données ont été recueillies au moyen d’un questionnaire structuré auprès de 385 répondants de Goa, en Inde, une destination touristique et de jeu très prisée. À l’aide d’une modélisation par équation structurelle, la recherche a révélé que la variance (87 %) dans l’appui aux jeux de hasard s’explique en majeure partie par l’attitude. Comme le suggère la théorie du comportement planifié, les avantages et les risques perçus expliquent la variance importante (58 %) dans l’attitude à l’égard des jeux de hasard. Les coefficients sont significatifs, à l’exception de la piste causale entre le risque social et l’attitude, qui a été retirée du modèle final. Les pistes directes allant des avantages et des risques vers l’appui n’étaient pas significatives. Il est apparu que les comportements de jeu des répondants avaient un effet modérateur sur la piste allant du risque personnel vers l’attitude. L’attitude des joueurs était de plus en plus positive à mesure qu’augmentait le risque personnel, tandis que celle des non-joueurs était de plus en plus négative. Ce résultat confirme l’existence d’un comportement de recherche du risque chez les joueurs.
... Gambling disorder is a condition characterized by persistent problematic gambling behavior that leads to clinically significant impairment or distress [1]. It is associated with adverse consequences that can include significant monetary losses or bankruptcy [2,3], criminal behavior, domestic violence [4e6], and increased risk for suicide [7,8]. ...
... In a large epidemiologic study, almost three-fourths of pathological gamblers had an alcohol use disorder, 38% a drug use disorder, 50% a mood disorder, 41% an anxiety disorder, and 61% a personality disorder [10]. The economic burden of gambling disorder is significant, with an estimated lifetime cost of $53.8 billion in the United States [3]. ...
Article
Objective: To date, no research has systematically evaluated screening instruments for gambling disorder to assess their accuracy and the quality of the research. This systematic review evaluated screening instruments for gambling disorder to inform decision-makers about choices for population-level screening. Study design and setting: On May 22, 2017 and January 4, 2019, we searched PubMed, PsycInfo, EMBASE, and Cochrane for studies that evaluated screening instruments for gambling disorder. Studies were included if (1) the screening instrument was in English, (2) the screening instrument was compared to a reference standard semi-structured interview based on Diagnostic and Statistical Manual of Mental Disorders or International Classification of Diseases diagnoses of gambling disorder, and (3) data were reported on psychometric properties of the instrument. Results: We identified 31 different screening instruments from 60 studies. Only three instruments from three separate studies were eligible for inclusion in the systematic review. Conclusion: Few screening instruments for gambling disorder have been validated with sufficient methodological quality to be recommended for use across a large health system.
... Historically, there has been considerable controversy about the appropriate theoretical and methodological approach to studying gambling impacts. These issues have been the focus of conferences ('Whistler Symposium' in British Columbia in 1999(Wynne & Shaffer, 2003, the 'Social and Economic Costs and Benefits of Gambling' conference in Banff, Alberta in 2006); special issues of the Journal of Gambling Studies (June 2003) and Managerial and Decision Economics Journal (June 2004); books (Grinols, 2004;Hsu, 2014;Walker, 2007Walker, , 2013Williams & Siegal, 2013); comprehensive reviews (Williams, Rehm, & Stevens, 2011); and many individual articles and reports (Anielski & Braatan, 2008;Australian Productivity Commission, 1999;Centre for Social & Health Outcomes Research & Evaluation, 2008;Collins & Lapsley, 2003; Committee on the Social and Economic Impact of Pathological Gambling, 1999;Eadington, 1998;Eadington, 2003;Gazel, 1998;Gerstein, Volberg, Harwood, & Christiansen, 2004;Grinols, 2007;Grinols & Mustard, 2001;Grinols & Omorov, 1996;Hawke, 2000;Hayward & Colman, 2004;Henriksson, 2001;Kelly, 2004;Kindt, 1994;Marfels, 1998;Nichols & Tosun, 2013;Nichols, Stitt, & Giacopassi, 2000;Nichols, Tosun, & Yang, 2015;O'Neil, Chandler, & SA Centre for Economic Studies, 2009;Persky, 1995;Single, 2003;Stevens & Williams, 2004;Thompson, Gazel, & Rickman, 1997;Victorian Gambling Research Panel, 2001;Walker, 2003Walker, , 2008aWalker, , 2008cWalker & Sobel, 2016;Williams, 2011;Wu & Chen, 2015). ...
... Some studies have attempted to do this by estimating the monetary value of these social impacts so that they can be combined with the monetary/economic impacts in other areas. This is the cost-benefit analysis (CBA) approach to gambling that is best illustrated by the work of the economist Earl Grinols (2004). ...
... This is still largely the case in Asia and Africa. The historical rationale was that a) the economic benefits of casinos are strongest when they draw new money and wealth into the community rather than simply redirecting local money (Williams, Rehm, & Stevens, 2011), b) casinos would be deleterious for urban, working-class populations, and c) social problems created by gambling go home with the tourist, rather than impacting local social service and health care system (Grinols, 2004;Williams, Rehm, & Stevens, 2011). Although it is true that this strategy partly just shifts the harm to out-of-jurisdiction residents, the actual impact on tourists would be offset by the fact that most of these individuals will not be able to regularly patronize the facilities they are visiting, and people with the financial means to travel may be less susceptible to gambling addiction. ...
... United States, Australia), tend to have less in the way of protective measures, as these governments put more responsibility on the individual to govern their own behaviour. The power of the gambling lobby/industry is also much stronger in these types of countries and often deters the adoption of protective measures (Grinols, 2004;Kindt, 1998). ...
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The past 15 years has seen a considerable amount of interest and effort being put into developing strategies to prevent problem gambling. Unfortunately, the development, implementation, and evaluation of most of these initiatives has been a haphazard process. Most have been put in place because they ‘seemed like good ideas’ and/or were being used in other jurisdictions, rather than having demonstrated scientific efficacy or being derived from a good understanding of effective practices in prevention.The primary purpose of the present document is to help change this state of affairs. More specifically, by: Proposing an etiological framework for understanding how problem gambling develops based on the available evidence and drawing from established models of addictive behaviour. Comprehensively evaluating the effectiveness of the various initiatives that have been used around the world to prevent problem gambling based on their demonstrated efficacy and/or their similarity to initiatives that are empirically effective in preventing other addictive behaviour. Based on this etiological framework and this critical review of the research, identifying current ‘best practices’ for the prevention of problem gambling.
... The behavioral scientific approach taken here aims to complement other perspectives on gambling advertising (Binde 2014). Problem gambling is increasingly viewed as a public health issue (Adams 2008;Ferentzy & Turner 2013;Grinols 2004;Orford 2010). The critical social marketing perspective acknowledges that gambling firms' marketing strategies are likely to be harmful to the end consumer (Moodie & Hastings 2009). ...
... The easy availability of gambling and the prominence of gambling advertising have led to an active public debate in Britain (Sylvester 2014;Bridge 2016). Numerous public health consequences of gambling are possibly worsened when gamblers are losing more money than they can afford (Grinols 2004;Adams 2008;Orford 2010;Ferentzy & Turner 2013). The costs of gambling are high, with the most recent figures indicating average losses of £310 per adult per year (Ellson 2016). ...
Article
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Background: The scale and complexity of British gambling advertising has increased in recent years. ‘Live-odds’ TV gambling adverts broadcast the odds on very specific, complex, gambles during sporting events (e.g. in soccer, ‘Wayne Rooney to score the first goal, 5-to-1,’ or, ‘Chelsea to win 2-1, 10-to-1’). These gambles were analyzed from a behavioral scientific perspective (the intersection of economics and psychology). Method: A mixed methods design combining observational and experimental data. A content analysis showed that live-odds adverts from two months of televised English Premier League matches were biased towards complex, rather than simple, gambles. Complex gambles were also associated with high bookmaker profit margins. A series of experiments then quantified the rationality of participants’ forecasts across key gambles from the content analysis (Total N = 1467 participants across five Experiments). Results: Soccer fans rarely formed rational probability judgments for the complex events dominating gambling advertising, but were much better at estimating simple events. Conclusions: British gambling advertising is concentrated on the complex products that mislead consumers the most. Behavioral scientific findings are relevant to the active public debate about gambling.
... Most often, such studies suffer from biased methodology or inflated sums of resulting social costs Walker (2007) mentions, for example, the work of Grinols and Mustard (2006) or Kindt (2001) in this context. An extreme case is the concept of and , where any activities in the context of gambling are taken a priori as harmful (see Gross (1998) and Grinols (2004)). Of course, studies can also be biased in the opposite way, underestimating the harmful effects of gambling, see e.g. ...
... That is, the consequences associated with problematic gambling can affect not only an individual but also their family and whānau, and the wider community. The cost of problematic gambling on communities is significant; research has demonstrated that problem gambling is associated with mental health issues such as depression and anxiety, family violence, criminal behaviour, substance misuse, suicidal ideation and suicide, and financial troubles (Black et al., 2013;Browne et al., 2016Browne et al., , 2017bGrinols, 2004;Li et al., 2017;Petry et al., 2005;Petry & Kiluk, 2002;Shaw et al., 2007). Recently, researchers have begun measuring the burden of harm associated with problematic gambling and its related outcomes. ...
... Economics of gambling is examined at the macro level to understand how growth in gambling, especially casinos, can impact wages, tax revenue, employment, and other industries (e.g., see Borg, Mason & Shapiro, 1993;Cotti, 2008;Goodman, 1994;Grinols & Omorov, 1996;Humphreys & Marchand, 2013;Walker & Jackson, 2011). At the microeconomic level, attention is given to monetary estimates of the social costs of gambling and individual outcomes related to bankruptcy, crime, debt, and decreased productivity (e.g., see Grote & Matheson, 2013;Thompson, Gazel & Rickman, 1997;Walker, 2010;Walker & Barnett, 1999), although monetary estimates of social costs remain difficult to ascertain due to discrepancies in definition and measurement (Grinols, 2004;Walker & Barnett, 1999), including accounting for the effects of comorbid conditions (Walker, 2003). The socio-political environment explores how social, political, and economic systems influence where, how, and to what extent gambling is offered in different jurisdictions. ...
Article
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Background and aims: The Conceptual Framework of Harmful Gambling moves beyond a symptoms-based view of harm and addresses a broad set of factors related to the risks and effects of gambling harmfully at the individual, family, and community levels. Coauthored by international research experts and informed by multiple stakeholders, Gambling Research Exchange (GREO) facilitated the framework development in 2013 and retains responsibility for regular updates and mobilization. This review article presents information about the revised version of the Conceptual Framework of Harmful Gambling completed in late 2018. Methods: We describe eight interrelated factors depicted in the framework that represent major themes in gambling ranging from the specific (gambling environment, exposure, gambling types, and treatment resources) to the general (cultural, social, psychological, and biological influences). After outlining the framework development and collaborative process, we highlight new topics for the recent update that reflect changes in the gambling landscape and prominent discourses in the scientific community. Some of these topics include social and economic impacts of gambling, and a new model of understanding gambling related harm. Discussion and conclusions: We address the relevance of the CFHG to the gambling and behavioral addictions research community. Harm-based frameworks have been undertaken in other areas of addiction that can both inform and be informed by a model dedicated to harmful gambling. Further, the framework brings a multi-disciplinary perspective to bear on antecedents and factors that co-occur with harmful gambling.
... Problem gambling is associated with depressive symptoms/anxiety (Blinn-Pike et al. 2010), alcohol dependence, and antisocial behavior (Afifi et al. 2016;Dowling et al. 2017;Lorains et al. 2011), which lead to significant direct and indirect socioeconomic costs related to crime, employment, bankruptcy, suicide, social service, treatment, and direct regulatory. The estimated annual economic cost of problem and pathological gambling in the United States (U.S.) ranges from $32.4 billion to $53.8 billion, and the average economic cost of pathological gambling is $9393 annually per affected individual (Grinols 2004(Grinols , 2011. In an effort to prevent problem gambling and its negative consequences in emerging adulthood, it is important to identify risk factors such as depression, antisocial behavior, and alcohol use. ...
Article
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Emerging adults (ages 18–29) display higher prevalence of gambling participation and problem gambling as well as co-occurrence with other risk behaviors compared to other age groups. Consequences of these co-occurring conditions may lead to psychological symptoms, behavioral problems, and socioeconomic and medical costs. Depressive symptoms, antisocial behaviors, and alcohol use are known risk factors for gambling participation and problem gambling. However, scarce research has examined the co-occurrence of those adolescent risk factors and later gambling behaviors in emerging adulthood longitudinally. Using multiple waves of National Longitudinal Study of Adolescent to Adult Health (Add Health) data, we examined the relationship between earlier depressive symptoms, antisocial behaviors, alcohol use, and gambling behaviors at wave III, and later gambling participation and problem gambling (wave IV) in emerging adults ages 18–29, using multinomial logistic regression. Our findings suggest that earlier antisocial behaviors and gambling behaviors increased later risk for gambling participation and problem gambling. Past-year alcohol use and heavy drinking were associated with the increased risk of gambling participation but not problem gambling. Earlier depressive symptoms decreased the risk of gambling participation later among those who endorsed antisocial behaviors. Emerging adulthood may be a critical developmental period in the development of comorbid conditions of gambling and other risk behaviors. The results contribute evidence supporting the importance of early prevention and intervention for the co-occurrence of gambling and other risk behaviors in emerging adulthood.
... Economic and fiscal impacts may be modest and short-term, and they may depend on the jurisdiction (Walker & Sobel, 2016). Merely adding jobs to a certain community may not enhance well-being: in gambling as throughout the hospitality industry, jobs offered by operators tend to be part-time, underpaid, demanding less education, and to require shift work, especially at night, thus increasing the need for round-the-clock childcare especially in single-parent households (Grinols, 2004). Introducing new gambling opportunities does not necessarily generate additional revenue for operators and beneficiaries either, in that the games may cannibalise what is already on offer . ...
Article
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Licensing is currently the most popular option among regulators for controlling gambling operations. However, approximately 20% of operators are still public monopolies. Many forms of gambling (especially lotteries) are government operated even in countries with a licensing system. This creates an inherent conflict of interest, given that government is supposed to protect the well-being of its citizenry and to reap the benefits of gambling at the same time. At least in the gambling monopoly, however, addressing the unavoidable harm that results from gambling should be a priority. Industry self-regulation and reliance on “responsible gambling” rely too much on individuals to control their own gambling. It is suggested in this contribution that it is possible to provide more comprehensive consumer protection, recognising both the duty of governments to take care of their own citizens and the fact that industry self-regulation is not enough. Pre-commitment cards have been tested in various contexts, and have shown promise in terms of providing tools for individuals to restrict their own gambling. However, given the known shortcomings such as allowing the use of other cards that are not one’s own, and other venues, it is clear that in themselves they do not guarantee effective prevention. Personal licensing is therefore explored as a move forward in this literature-based discussion. Although the system may be applicable to other contexts, the focus is on the Nordic countries. Given that the underlying justification for gambling monopolies is to control gambling-related harm, in the cases of Finland and Norway licensing could be combined with loyalty cards introduced by monopoly operators. This would provide a feasible alternative to current practices of responsible gambling.
... Furthermore, the cost of crime treatment is borne by taxpayers since it is a government expense. As mentioned earlier by [9], taxes reduce the ability to consume goods and therefore reduce social welfare. ...
... Australia, for example, leads the way with annual losses of $990 per-resident adult in 2016, while the United States had the fifth highest per-resi- dent adult losses of over $450 in 2016, corresponding to the highest overall per-country loss of $116.9 billion. Gambling losses -the gambling industry's profits -have increased as jurisdictions compete to deregulate gambling and gain a short-term economic boost, while hoping the costs will mostly fall on their neighbors (Atkinson et al. 2000;Grinols 2004). The result is record worldwide gambling losses, which are forecast to continue rising (The Economist 2017). ...
Article
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... In addition, gambling poses an intellectual challenge to some players and aids in self-fulfillment by facilitating visions of life transformation after winning the jackpot (Binde, 2012). However, gambling also has been associated with a host of problems such as loss of earned income brought on by recklessness, gambling-related debts (Potenza et al., 2000), decreased work productivity (Grinols, 2004), socioemotional burdens on the gambler's family and friends, and increased engagement in criminal activity (Walker, 2007). Research also has revealed an association between gambling and comorbid psychopathologythe greater the severity of gambling dependency, the higher the risk of mood, anxiety, or substance-use disorders (Parhami, Mojtabai, Rosenthal, Afifi, & Fong, 2014). ...
Article
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This study aimed to examine the effects of gambling motives and competitive gambling outcomes on opponent likeability and targeted physical aggression. We hypothesized that (a) losers would perceive their opponents to be less likeable and (b) would be physically more aggressive toward their opponents. Opponent likeability was proposed to mediate the lose–aggression relationship while social gambling motives were proposed to moderate the lose–aggression relationship. Specifically, we expected that losers of competitive gambling situations would engage in greater physical aggression only if they perceived their opponents to be less likeable. In addition, lower perceived opponent likeability would translate into greater targeted physical aggression only if the loser possessed low social motives for gambling. Ninety‐eight undergraduates who self‐identified mostly as recreational gamblers participated in a competitive gambling game. The Hot Sauce Paradigm was adapted as a measure of targeted physical aggression. Results obtained supported our hypotheses. Potential implications and limitations are discussed.
... Gambling can have benefits to societies as well as to individuals (e.g., American Gaming Association, 2014; Basham & Luik, 2011;Collins, 2003), but the economic benefits of all forms of gambling are not the same. Casinos and racing are labour intense, although the value for the economy of the often low-paid, part-time jobs that are associated with these industries has been questioned (Grinols, 2004;Kendall, 2011). Automated forms of gambling, such as electronic gaming machines (EGMs) or online gambling, require less personnel and do not have a positive impact on employment (Williams, Rehm, & Stevens, 2011). ...
Article
In economics, cannibalization refers to a process in which a new product or service partly or completely substitutes for those in existing markets. This systematic review analyses the existing evidence on cannibalization within gambling markets to determine whether such substitution takes place between different types of gambling. The analysis shows that new gambling products substitute to a certain extent for existing gambling products. The sector in which the evidence is most convincing is the casino industry, which cannibalizes lotteries and pari-mutuel racing. There is also evidence that casinos substitute for other casinos and for non-casino electronic gaming machines. Lotteries substitute for casinos, other lotteries, sports betting, and pari-mutuel or racing industries. In other cases, the evidence is less conclusive and sometimes non-existent, or industry relationships are more complicated. This review also found that even in cases where substitution does occur, it is incomplete, and thus the introduction of new products tends to expand the overall gambling market. We discuss these market dynamics and identify gaps in the available research. © 2018, Centre for Addiction and Mental Health. All rights reserved.
... Gambling can have benefits to societies as well as to individuals (e.g., American Gaming Association, 2014; Basham & Luik, 2011;Collins, 2003), but the economic benefits of all forms of gambling are not the same. Casinos and racing are labour intense, although the value for the economy of the often low-paid, part-time jobs that are associated with these industries has been questioned (Grinols, 2004;Kendall, 2011). Automated forms of gambling, such as electronic gaming machines (EGMs) or online gambling, require less personnel and do not have a positive impact on employment (Williams, Rehm, & Stevens, 2011). ...
Article
Full-text available
In economics, cannibalization refers to a process in which a new product or service partly or completely substitutes for those in existing markets. This systematic review analyses the existing evidence on cannibalization within gambling markets to determine whether such substitution takes place between different types of gambling. The analysis shows that new gambling products substitute to a certain extent for existing gambling products. The sector in which the evidence is most convincing is the casino industry, which cannibalizes lotteries and pari-mutuel racing. There is also evidence that casinos substitute for other casinos and for non-casino electronic gaming machines. Lotteries substitute for casinos, other lotteries, sports betting, and pari-mutuel or racing industries. In other cases, the evidence is less conclusive and sometimes non-existent, or industry relationships are more complicated. This review also found that even in cases where substitution does occur, it is incomplete, and thus the introduction of new products tends to expand the overall gambling market. We discuss these market dynamics and identify gaps in the available research.
... In the case of gambling, the recommendation of a moratorium on its expansion by the National Gambling Impact Study Commission at the end of the 1990 s to facilitate the collection of more data on related social harm was not adhered to (NGISC 1999). Subsequently, the costs and benefits of gambling were inadequately addressed when various policy alternatives were explored ( Grinols 2004). It seems that the same thing is happening with cannabis. ...
Article
Gambling has been legalized due its capacity to provide tax revenue in times when additional tax revenue is difficult to collect from large corporations and wealthy individuals. Especially state lotteries have been introduced on the premise that they provide additional funding for “good causes”. Given the harm that potentially results from gambling, it is possible to question whether education or other “good causes” truly form a ground for governments to align themselves with the gambling industry. There is no agreement on values in a modern pluralistic society, and although the purpose of education is used in legalization campaigns, after legalization it is possible to derive funds for whatever governments deem appropriate, or where there is a lack of public funds. In the US legalization of marijuana has been accomplished by using gambling as model how to gain acceptance for addictive product, and use of tax revenues seems to follow at least first the pattern developed for lottery proceeds. There is still a lack of research regarding gambling-related harm and the resultant social costs, and the situation is even more pressing with research dealing with harms and costs related to use of cannabis. The legalization of the use of recreational cannabis has occurred on basis that cannabis is relatively harmless, and after using cannabis for relatively limited medical purposes. The harms resulting from the use of cannabis do not necessarily diminish after legalization, and public officials will again face a conflict of interest similar to gambling, when collecting taxes from cannabis industry.
... ( Grinols 2003), others see that they simply reflect consumers' consumption choices and hence should not be a real cause for concern (Walker 2007, 28-30). This discussion concerning monetary outflows is similar to the discussion concerning the welfare effect in the sense that it includes many problematic axioms of neoclassical economics such as the neutral money axiom where money is considered to be neutral and simply a veil over barter. ...
... Regardless of discussions on classifi cation, people have increasingly recognized PG as a public health concern that is costly and potentially disabling ( Grinols, 2004 ). A commission formed by President Bill Clinton during the late 1990s focused attention on PG and documented its negative impact on individuals and society ( National Opinion Research Center at the University of Chicago [NORC], 1999 ). ...
... Par ailleurs, même pour les joueurs hors-ligne, les conséquences autres que le jeu pathologique demeurent relativement peu documentées malgré leur empreinte dans la sphère sociale et la communauté ( Grinols, 2004; Rehm et al., 2003; Room, Turner, et Ialomiteanu, 1999; Vaillancourt et Roy, 2000;). Rappelons que, selon Politzer, les problèmes des joueurs entraineraient des répercussions négatives auprès de 10 à 17 personnes de leur entourage immédiat, comme la famille, les collègues, les amis ou les employeurs (Politzer, Yesalis, et Hudak, 1992). ...
... For most such people various forms of gambling remain exciting and enjoyable experience with no or only minimal adverse effects. However, for a substantial minority gambling is acutely reinforcing and profoundly addicting (Grant et al., 2010), so that 2% and 0.5%, respectively, develop problem-or pathological gambling (PrG or PG) encoded in at least 1 or in at least 5 PG criteria from the Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision (DSM-IVTR; American Psychiatric Association, 2000), leading to seriously maladaptive behaviors culminating in financial collapses, ruined relationships, divorces, increased rates of crime, violence, and attempted suicide in 17% to 24% of PG patients (DeCaria et al., 1996; Potenza et al., 2002; Grinols, 2004; Petry et al., 2005; Kessler et al., 2008; Gowing et al., 2015). These numbers may be increasing, however, as parallel to the ongoing expansion of legalized gambling activities is an increase in the prevalence of PG in some vulnerable populations. ...
Article
Background: Parallel to the ongoing expansion of legalized gambling activities is a growing concern about rising occurrence of uncontrollable gambling. People with preexisting gambling and/or chemical addictions may be particularly vulnerable, but the extent of such co-occurring conditions and their demographic and clinical characteristics have not been sufficiently elucidated. To that end, the present study attempted to both, quantify the presence and to characterize co-occurring pathological or problem gambling (ie, respectively, at least 1- or at least 5 pathological gambling criteria from the Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision) among treatment-seeking patients at a community outpatient addiction program. Methods: The patients were assessed with the South Oaks Gambling Screen and their charts were reviewed for the extraction of demographic and clinical information according to a predetermined template. Data from 183 subjects withstood quality control procedures and were included. Results: The prevalence rates of co-occurring problem- (18.6%) and pathological (10.9%) gambling were strikingly higher than those found in the general population (2% and 0.5%, respectively). No increase in the clinical severity indices was observed across the gambling groups. Conclusions: Our data replicate those of prior studies reporting heightened prevalence of problematic gambling in patients with substance use disorders and extend the prior findings by including a subject population of treatment-seekers. In the era of the gambling industry growth, these results call for creation and/or adjustment of clinical addiction services to meet emerging preventive and therapeutic needs.
... In support of this notion, Ledgerwood and Petry (2004) noted that almost half of participants from a gambling treatment center reported suicidal ideation and 12% had previously attempted suicide for gamblingrelated reasons. For its burden on society, gambling disorder and other gambling-related problems, such as illegal acts, lost work time, and bankruptcy, cost the United States an estimated 32 to 53 billion dollars/year, or 165 to 274 dollars/ adult/year, depending on prevalence ( Grinols, 2004). In addition, gambling disorder frequently presents with several co-occurring psychiatric disorders. ...
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Background and aims Gambling disorder and its comorbid diagnoses are observed at higher rates in military veterans than in the general population. A significant research gap exists regarding the relationships of veterans' life and service experiences to problematic gambling. The present study explored pre-, peri-, and post-deployment factors associated with problem gambling in veterans. Methods Veterans of Operation Iraqi Freedom, Operation Enduring Freedom, and Operation New Dawn (n = 738; 463 males, and 275 females) completed questionnaires via structured telephone interview. We conducted bivariate and multinomial logistic regression analyses exploring associations among problem-gambling severity and socio-demographic variables, psychiatric comorbidities, and 10 scales of the Deployment Risk and Resilience Inventory measuring experiences pre-, peri-, and post-deployment. Results Approximately 4.2% of veterans indicated at-risk or probable pathological gambling (ARPG) post-deployment (two or more DSM-IV criteria for pathological gambling). Bivariate analyses found more severe gambling in males, higher frequencies of post-traumatic stress disorder, substance dependence, traumatic brain injury, panic disorder, and depression in veterans with ARPG, and higher general harassment during deployment, and lower social support and more stressful life events post-deployment in those with ARPG. In multivariable models, both post-deployment factors remained significantly associated with ARPG. Discussion The study suggests that problem gambling among veterans is related to service experiences, and particularly to life experiences post-deployment. Conclusions Adverse service and life experiences and lack of social support may contribute to the risk of problem gambling in military veterans. Investigation of how Veterans Affairs clinical settings may serve veterans following deployment to prevent behavioral addictions is warranted.
Article
Is the gambling business compatible with Christianity? Catholicism, the largest Christian denomination, does not provide a clear answer to this question, which has also been largely dismissed by scholars from gambling studies and religious studies alike. This article fills this gap through an assessment of the gambling business in light of Catholic moral and social teachings. It offers two main findings. First, it challenges the widespread notion of the neutrality of the Catechism towards gambling and argues that contemporary commercial gambling is in contravention of core Catholic moral teachings. Second, it offers a novel assessment of the legitimacy of the gambling enterprise through the application of the concept of ‘social usefulness’. It proposes that any positive social outcomes resulting from gambling, regardless of their entity, do not render the gambling enterprise socially useful and legitimate – from a Catholic social-teaching perspective – since gambling also brings about significant gross social costs. This article contributes to a better understanding of the place of gambling within Catholicism, and hence within Christianity more broadly. Likewise, it offers suggestions on how the Catholic Church could embrace a more accurate assessment of the gambling enterprise that better reflects Catholic social doctrine so as to mitigate problem gambling, which is particularly salient among Catholics.
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Gambling of young people as a risky behavior is an increasingly current social problem, but also the subject of numerous researches. The gambling industry is one of the fastest-growing industries in the world, and a significant increase in availability has taken place in the Bosnian and Herzegovinan society. Young people in BiH are entering the world of gambling more often and easier. Bad economic situation, social unrest, high poverty and unemployment rates contribute to this situation. World statistics show that the increase in gambling was significantly affected by the COVID-19 pandemic. Omnipresent digitalization during the pandemic, movement restrictions, but also existential uncertainty have opened a new path to online gambling. Therefore, an research was conducted in which the habits of young people (N=174) and their frequency of (online) gambling were examined. The questionnaire results showed that 70.5% of respondents had played games of chance at least once in their lives. Young people usually play one-time tickets and sports betting. Of particular concern is the fact that individuals play online games of chance on a daily basis. They usually invest a smaller amount of money and more than half of the respondents have lost money on betting at least once. The data show that gambling is most often out of boredom, fun and socializing, and they do not consider such behavior to be problematic. According to self-assessment, only 5.9% of respondents believe that their gambling is somewhat or completely problematic, while 3.7% state that the degree of gambling addiction is so high that they need professional help. On the other hand, Bosnia and Herzegovina lacks prevention programs aimed at problematic youth gambling, which is why they remain deprived of professional support. All of this suggests that serious investment in public health and social policies is needed to offer quality prevention and psychoeducational programs.
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This chapter reviews the history, economics, terminology, financial aspects and accounting features and operating aspects of casinos. Readers in this chapter will learn what factors affect casino profits and how profits are earned from games, the terminology and psychological roots of the business, and what methods are used in marketing and valuation. Ties to economic factors and studies are also provided.
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El estudio que presentamos está estructurado en cuatro partes: 1. Análisis de la coyuntura turística y económica del ejercicio 2013 2. Previsiones del Índice UAB para el año 2014 para Cataluña 3. Predicciones de demanda turística para toda España en el ejercicio 2014 4. Estudio del turismo del juego en Cataluña En la misma línea de años anteriores, la primera parte del informe realiza un análisis de la coyuntura, la segunda versa sobre las predicciones turísticas para Cataluña, -capítulo clave que da pie al Índice UAB-, una tercera parte proyecta para España los indicadores turísticos más relevantes con novedades destacadas, y la cuarta y última contiene un monográfico sobre el turismo del juego en Cataluña, en consonancia con la actualidad del proyecto Barcelona World y de otros macrocomplejos que no han tenido continuidad o plasmación. En esta edición del Índice UAB, adicionalmente y como novedad, se ha efectuado un análisis más profundo de los mercados emisores, todo ello con el objeto de disponer de mayor conocimiento que nos ha de permitir mejorar nuestro marco global de previsiones. El estudio monográfico que el Índice UAB presenta anualmente y que en esta edición versa sobre el turismo del juego tiene un gran valor y representa un análisis técnico de esta modalidad temática, que huye de los estudios superficiales partidistas e ideológicos, neutraliza los activismos sistemáticos y elimina los efectos de las expectativas y los prejuicios, así como los apriorismos tan frecuentes e interesados en numerosos aspectos, tanto a favor como en contra. Es un análisis científico de un debate turístico, económico y social que deberemos realizar, con sus luces y sus sombras. Una economía potente y sana no puede prescindir del sector turismo, depende de su desarrollo y evolución. Entre los productos y servicios turísticos del país destaca la organización y la celebración de eventos y este hecho relaciona y genera todo tipo de turismos. El juego y los eventos asociados ofrecen muchas posibilidades a diversas modalidades de turismo: de negocios, de compras, de parques temáticos, gastronómico, cultural y de espectáculos, así como desde la perspectiva de todos los atractivos y recursos de un territorio y del ocio en general. El énfasis que se pone en uno y otro, así como la combinación de productos en un resort, incluyendo el propio alojamiento, puede modular la presencia del juego y configurar una experiencia única, tomando así distancia del llamado turismo de casinos. En un ámbito muy diferente pero igualmente importante para el estudio que nos ocupa, debe destacarse el fuerte crecimiento que se augura para el turismo internacional en el año 2014, según la Organización Mundial del Turismo (OMT): entre un 4% y un 5%, similar al del año 2013, que finalmente fue del 5%. Este avance anual proyectado se compone de tasas entre el 5% y el 6% en Asia y el Pacífico, del 4% o 5% en África y del 3% al 4% en América. Para Europa y Oriente Medio los porcentajes estimados se moverán en tramos algo inferiores de aumento, entre el 2 % y el 3%. En 2014 todo indica que van a persistir en África los problemas políticos, civiles y religiosos que restarán posibilidades de crecimiento en buena parte de los países del área llamada de la primavera árabe. Los vectores de crecimiento, las tendencias y las perspectivas muestran el desplazamiento del turismo de los países desarrollados hacia las naciones en desarrollo y emergentes, dado el nivel de partida y el empuje y la fuerza con que se mueven las economías de estas últimas. En cuanto al sector turístico catalán, en el 2014 podría registrar unos resultados quizás algo mejores que los del año anterior, explicados por un favorable comportamiento del turismo extranjero, -sustentado en una mayor presencia de los mercados emergentes y en una leve ampliación de los mercados europeos tradicionales-, además de la ansiada recuperación del cliente español, debido a la mejora en la situación económica del país en determinados ámbitos, si bien pequeña todavía. Sin duda, el 2014 podría ser otro buen año en líneas generales para Cataluña en el terreno turístico. El desafío, pues, es asegurar que este crecimiento se pueda mantener durante muchos años acometiendo las políticas necesarias. Se augura también un buen 2014 para el sector turístico español, alargándose la expansión del anterior como consecuencia del aumento del turismo de los mercados emergentes, del mantenimiento de los mercados maduros , de los problemas que persistirán en los países competidores del Mediterráneo con su efecto trasvase y refugio y un crecimiento mínimo, esperable, del turismo interno. Los indicadores podrían mostrar un incremento del 3% en número de pernoctaciones hoteleras y un alza del 7% en volumen de gasto turístico, en su componente extranjero. España se apuntó en 2013 un registro del 5,6% de crecimiento en número de turistas, por encima del anotado a nivel mundial, ante un 5% de aumento que podría darse en el 2014.
Article
Background and Objectives To estimate the diagnostic prevalence and incidence of gambling disorder among United States service members and to identify associated risk factors, including demographics, history of mental illness or substance misuse, and proximity to legalized gambling vicinities. Methods Gambling disorder cases comprised active component Service members who received a pathological or problem gambling diagnosis between October 1, 2005 and September 30, 2015. There were 901 cases (392 incidents) during the study period. Controls were matched on the case military entrance date (N = 43,564). Geospatial distance between gambling venue and military treatment facilities were calculated, then multivariable logistic regression and survival analyses were conducted. Results The 10‐year prevalence of gambling disorder was 6.6 per 100,000. Men were 3.5 times more likely than women to receive a gambling disorder diagnosis. Other risk factors included age over 24, Asian or Black race, formerly married, and enlisted rank. The odds of gambling disorder increased with duration and proximity to gambling venues, ranging from 2.0 to 3.9. Service members with prior substance misuse or mental health conditions were 3.9 times and 6.3 times more likely to receive a disordered gambling diagnosis than those without substance misuse or mental illness history, respectively. Conclusions and Scientific Significance The results of this study reveal that proximity to gambling venues and slot machines on bases, as well as a history of substance misuse or mental disorders, are important risk factors for gambling disorder in the US military. Department of Defense screening policies that focus on high‐risk populations are appropriate. (Am J Addict 2021;00:00–00)
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The last three decades have seen explosive growth in the commercial gambling industry. Researchers have correspondingly studied the impacts of this industry as it emerged. This chapter draws together a number of key findings from the economics literature on casinos as the basis for informed regional development policy. The use of casino gambling as a tourism amenity is explained, followed by findings from the literature on social costs of casinos. These costs are contrasted by the literature on how casinos impact a number of important economic indicators including employment, income, and tax revenues. A number of geographic considerations of these benefits are then enumerated, including spatial limits. The chapter concludes with a short list of policy considerations for jurisdictions considering the legalization of commercial gambling as a basis for economic development.
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Fast expansion in casino gaming is widely perceived as an underlying reason for housing bubbles in tourist resorts such as Macao. Yet it remains unclear whether such bubbles have any bearing on income inequality that comes with tourism expansion. This paper provides a formal explanation for the inequality-housing price nexus by using a vector autoregressive model with exogenous variables (VARX) and an autoregressive distributed lag model (ARDL). We find that casino tourism expansion plays a fundamental role for both income inequality heightening and housing price hiking, with rising inequality also contributing significantly to housing bubbles. Our empirical findings accord well with theoretical predictions made in this paper. Useful policy implications can then be derived from those findings.
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Background: Gambling for money is a popular leisure time activity in most countries, which has major social and economic impacts not only affecting the gambler, but his/her significant others, and the society. Gambling impact studies can help researchers and policymakers compare the health and social costs and benefits of different gambling policies and can be used when considering which gambling policies will reduce or increase costs or benefits the most. In a public health approach, the impacts of gambling, negative and positive, are assessed across the entire severity spectrum of the activity. Although some studies have created basic principles for conducting impact studies, a theoretical model is currently lacking. The aim of this debate is to review complementing and contrasting views on the effects of gambling to create a conceptual model, where a public health perspective is applied. Main text: The effects of gambling can be structuralized using a conceptual model, where impacts are divided into negative and positive; costs and benefits. Costs and benefits are categorized into three classes: financial, labor and health, and well-being. These classes manifest in personal, interpersonal, and societal levels. Individual impacts cause effects on a personal level to gamblers themselves. External impacts influence the interpersonal and society/community levels and concern other people. The temporal level refers to the development, severity and scope of the gambling impact. These include general impacts, impacts of problem gambling and long-term impacts of gambling. Conclusions: The conceptual model offers a base on which to start building common methodology for assessing the impact of gambling on the society. While measuring monetary impacts is not always straightforward, the main issue is how to measure the social impacts, which are typically ignored in calculations, as are personal and interpersonal impacts. The reviewed empirical work largely concentrated on the costs of gambling, especially costs on the community level. The Model can be used to identify areas where research is scarce. Filling the gaps in knowledge is essential in forming a balanced evidence base on the impacts of gambling. Ideally, this evidence could be the starting point in formulating public policies on gambling.
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Gambling exposes people to risk for harm, but also has recreational benefits. The present study aimed to measure gambling harm and gambling benefits on similar scales using two novel methods adapted from the Burden of Disease approach (McCormack et al. in Psychol Med 18(4):1007–1019, 1988; Torrance et al. in Health Serv Res 7(2):118–133, 1972) to find whether gambling either adds or subtracts from quality of life. A Tasmanian population-representative survey of 5000 adults (2534 female) from random digit dialling (RDD) of landline telephones in Tasmania (50%), as well as pre-screened Tasmanian RDD mobiles (17%) and listed mobile numbers (33%), measured gambling benefits and harms amongst gamblers (59.2%) and a non-exclusive set of people who were “affected” by someone else’s gambling (4.5%). The majority of gamblers indicated no change to their quality of life from gambling (82.5% or 72.6% based on direct elicitation or time trade off methods, respectively). Nevertheless, a weighted average of all the positive and negative influences on quality of life, inclusive of gamblers and affected others, revealed that the quality of life change from gambling is either a very modest + 0.05% or a more concerning − 1.9% per capita. Gambling generates only small or negative net consumer surpluses for Tasmanians.
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A word can carry different meanings for different people. Conjoint analysis was applied to assess preferences for various words describing integrated resorts (IR) including casinos, to be introduced in Japan in the future. We discuss how the participants understood particular words (e.g., a specific casino’s place name or wording regarding restrictions on betting) that define the characteristics of a casino, as well as how casino-related words influenced participants’ preferences. Implications for enhancing public understanding of casinos are explored in the conclusion.
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Casino gambling has greatly expanded in the United States since 1988. This paper considers the public interest implications of this change, including increased social costs and state revenues from casinos that can help address these costs. We describe casino growth, including the role of the Indian Gaming Regulatory Act (IGRA) in casino development. After reviewing the research associated with casino social costs and state revenues, we select a number of states, concentrating in the northeastern United States, and describe the state revenues from casinos along with the funding that is provided for problem gambling prevention and treatment programs. We find a lack of consistency in the state casino tax rates, resulting revenues, and support for problem gambling prevention and treatment programs. Since billions of dollars of revenues are potentially at stake, state leaders should consider employing a strategy to capitalize on these revenues, given the increasingly prevalent social costs associated with casinos and the need to support problem gambling prevention and treatment programs.
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The introduction presents the framework of gambling regulation currently in place in Europe. It enables the reader to evaluate individual chapters from a vantage point whether social services and other ‘good causes’ should be funded through the gambling proceeds. The chapter explains the importance of gambling in funding the welfare services, why gambling is allowed to expand even though it creates substantial harm, and choices governments face when regulating. The focus of the first section of the book is on case studies showing how gambling revenue is allocated to state-run welfare. The second part shows how gambling funds are earmarked for designated causes. The third part discusses recent legislative changes, and the final part of the book provides a theoretical evaluation on the matter.
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Coercive commodities are those goods and services that promote ‘akratic’ consumption – that consumption recognised by consumers themselves to be contrary to their own best interests, all things considered. The production of coercive commodities has become an increasingly significant economic project of fractions of the capitalist class. As a form of secondary exploitation, coercive commodities facilitate the extraction of surplus profits from the savings and assets of the working classes, thus impeding the accumulation of a workers’ hoard that may act as a potential blockage to value realisation in consumption. We use the example of commercial gambling to illustrate the political economy of coercive commodity production. The gambling production system is driven by a core dynamic between spatially fixed capital, the pressures of competition, and the technological generation of akrasia. The geographical expression of this dynamic is determined by the contingencies of the ‘harm maximisation’ policies of the state and the political efforts of individual capitalists to gain and reproduce monopoly power. Gambling production is effective as a form of secondary exploitation because, in addition to the profits accrued by exploiting labour, it extracts surplus profits by diverging sale price from value, by harnessing monopoly power, and by increasing the volume of consumption through akrasia. It is this extractive power, amplified by the consumer credit system, that forms the basis of the systemic utility of coercive commodities in late capitalist economies.
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In Shakespeare’s longest play, Hamlet, the following monologue spoken by Prince Hamlet to a pair of courtiers, Rosencrantz and Guildenstern, is frequently quoted to illustrate the paradoxical and tragic nature of human beings:
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Literature on intergovernmental partnerships suggests the importance of several factors including organizational resources, capacity, and problem severity in understanding the adoption of these partnerships. This research improves our understanding about the adoption of intergovernmental partnerships by examining tribal and nontribal governments that adopted voluntary agreements to improve the administration of justice. Using data from the Bureau of Justice Statistics, this research examines how socioeconomic conditions, problem severity, and law enforcement authority influence the adoption of partnership agreements between tribal and nontribal law enforcement. The results suggest that tribes that adopt partnerships have better socioeconomic conditions; nontribal actors have lower levels of authority and higher occurrences of violent crime. The presence of Indian gaming also increases the likelihood of adopting cooperative agreements. The results of this study provide an important insight into understanding intergovernmental cooperation in general and what drives cooperation between native and surrounding non-native communities in particular.
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Perhaps nowhere is the preceding sentiment more appropriately expressed than in gaming and wagering, in which kings and queens play amid snake eyes and wild jokers, and horses run for the roses. It has indeed been said that, “Whoever wants to know the heart and mind of the earth’s citizens needs to understand gambling.” This chapter explores the essential economic features of this fascinating business, for whose services consumers will spend more in the aggregate than for any other form of entertainment.
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This chapter starts with a thorough introduction to gambling addiction according to the current state of research. It explains the nature and mechanisms of this mental disorder. These findings lay the ground to analyse the proportionality review: judicial views are contrasted with empirical findings. It is shown that the Court of Justice's – legally relevant(!) – assumptions on gambling addiction are (only) partly supported by empirical evidence. The chapter also establishes that different standards of review have applied to different aspects of gambling regulation, with the most lenient review being applied to national choices of licensing models and the strictest to penalties and procedural requirements in licensing tenders. In a next step, the Court’s review practice is compared to judgments in other areas that involved similar consumer protection concerns (alcohol addiction and youth drinking; internet threats). Again, a diverging standard of review is noted. The chapter inquires the causes for the Court’s peculiar approach to gambling issues. It analyses in particular the political context of the early case law and it identifies passages in the jurisprudence that illustrate a subjective-moral rather than objective-scientific perspective on gambling-related risks. Finally, the chapter addresses the consequences of the Court’s diverging approach. Dealing with gambling as a ‘peculiar issue’ and a topos of public morality led to a lack of a science-informed assessment of gambling-related risks. The chapter notes a ‘judicial vacuum’ in the review practice; the numerous cases referred to the Court of Justice are an expression of this problem as predicted by the late Advocate General Colomer.
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This chapter was written to clarify the basics of problem or pathological gambling (PG) as an idea and also to establish its existence. Controversies over the reality of mental disorders are especially poignant when behavioral addictions are at issue. We discuss evidence for PG based upon harm, prevalence, and its relationship to other psychiatric disorders. Assorted definitions of problem and pathological gambling, along with issues pertaining to subtypes and etiology, are discussed with the intention of identifying controversies as well as providing as much clarity as possible. Comparisons to substance addiction, obsessive–compulsive disorder, and impulse control disorder are made, both to help identify PG’s place in psychiatric nosology and also to highlight conceptual difficulties that would haunt us regardless of which designations we favor. Above all, we argue that PG is a reality even if it cannot be defined and explained to everyone’s satisfaction.
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Inferring the consumer benefits from reduced distance to the product or service provider plays a central role in the cost-benefit analysis of siting decisions, where the relevant issue is reducing the consumer's distance to the nearest supply point rather than reducing prices or the terms of supply. If visit enjoyment declines with distance, increases with expenditure per visit, and expenditure per visit and number of visits per period are choice variables, then a consumer-surplus-like measure serves as an upper bound on distance benefits. The theory is applied to a CES utility function modified to incorporate distance and benchmarked to casino data.
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This study analyzes the effect of a new large export-based industry on crime in its region, and in turn on property values. Urban economic models suggest that, ceteris paribus, land values diminish with distance from a central place which “produces” employment, income and other amenities. The new industry has the negative byproduct of crime, which is hypothesized to have a reversed, although systematic effect, on land values. Thus, theoretically, the net effect of (dis)amenities as a function of distance from the central city is ambiguous. Applying the model to casinos in Atlantic City shows that the frequency of violent crimes, burglaries, and robberies diminish with distance and appear to have a depressing effect on property values especially in localities accessible to the central city. The negative effect of crime diminishes with distance. The effect on property values appears to be significantly higher in the postcasino relative to the precasino era. However, the positive effects of the central city on real estate values diminish with distance. Thus development and crime affect property values inversely as a function of distance. The discounted value of the cost of crime resulting from casinos, as reflected in unrealized assessed real estate valuation, appears to be on average 24 million dollars per square mile in the 12 accessible localities, and 11.2 million dollars per square mile in the 52 less accessible localities.
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Since the Watergate era, when investigative reporters were advised to "follow the money" to find the facts, this principle has been reaffirmed several times as the mechanism for the fourth estate to scourge crime and corruption from government, lobbying activities, and the political process (Bernstein and Woodward 1975, 35). ... In 1995 in Virginia, a state with only some charitable gambling and a recently enacted lottery, casino proponents hired 48 lobbyists who represented practically every lobbying firm in the state capital in an attempt to prohibit any antigambling lobbyists from competing. ... The unlimited amounts of money available to the gambling industry would also corrupt the governmental system according to Nat Helms, a former high-ranking member of the gambling industry's 1994 campaign that brought video gambling machines to Missouri. ... Under the dominant influence of legislation proposed and even drafted by the gambling interests, during the 1980s and 1990s states not only legalized gambling activities but also legislated special economic and liability protections for the gambling industry that were unavailable to other businesses. ... The AGA's chairman, Frank Fahrenkopf, in addressing gambling industry leaders, has constantly extolled the political clout of the "moral opponents" of gambling and linked the NCALG to the Christian Coalition in an effort to raise millions of dollars for the AGA (which has approximately a $ 4.6 million budget, compared to just over $ 100,000 for the NCALG). ... With Gambling Study on Table, Las Vegas Hedging Early. published or submitted for publication is peer reviewed
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Estimates of the proportion of gambling revenues derived from problem gamblers represent an important element in the rational calculus of public gambling policy. However, a critical concern in calculating such estimates is the accuracy of self-reported expenditure data. In this paper, we review an emerging literature on estimating the proportion of expenditures from problem gamblers for different types of gambling, with a focus on the relationship between self-reported estimates and known spending. We then examine recent national survey data pertaining to this matter. After detailing several of the challenges in the effort to assess self-reported expenditures on different types of gambling, we recommend some methodological improvements that can be made in response to these problems. Copyright © 2001 John Wiley & Sons, Ltd.
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Casinos could help inhibit the development of pathological gambling by limiting the contributions they make to the development of pathology among gamblers. Reasonable strategies for limiting pathology might include limiting the size of jackpots, decreasing the length of play, limiting access, decreasing the rate of play, decreasing the arousal of patrons, decreasing the variability of games, and decreasing the inducements to play. These strategies could be employed in the domains of accessibility, environment, game structure, promotion|marketing, education and treatment. The author argues that the implementation of these strategies would not only inhibit the development of pathological gambling, but might also benefit the casinos and society. The suggested changes in casinos offers a focal point for further research and further dialogues between clinicians and casino operators. Copyright © 2001 John Wiley & Sons, Ltd.
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This paper considers the theory of Directly Unproductive Profit Seeking (DUP) activities, examining its implications for economic theory. Two classes of DUP activities are distinguished: one where the DUP activity is triggered by policy which is itself exogenously specified (e.g., tariff-revenue seeking resulting from pre-specified tariff); the other where DUP activity endogenises policy fully (e.g., tariff seeking). Implications for both positive and normative argumentation in economic theory are considered in depth for both these classes of DUP activity.