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Don't Bet on Gambling to Strike it Rich
Gambling is a multi-billion dollar industry in the United States
and around the world. Some see it as a dangerous and risky form
of recreation; others view it as an excellent and appropriate source
of revenue. Pam Pierce, associate professor of mathematical sciences
at The College of Wooster, has taught a first-year seminar class
on gambling, and she shares her thoughts on some of its more important
issues, including whether or not bringing a casino to northeast
Ohio is a good idea.
Q. Why do you see gambling as a "widespread national
phenomenon"?
A. It is estimated that in 1998, more than 60 percent
of the adult U.S. population participated in some form of gambling.
By comparison, only 37 percent of registered voters went to the
polls in that same year. Over 600 billion dollars changes hands
each year as a result of legal gambling transactions. This figure
does not include money transferred as a result of wagers made through
bookies (illegal bet takers), office pools, and friendly Friday
night poker games - all of which are illegal.
Q. Why is the City of Cleveland considering legalizing
gambling and bringing a casino to northeast Ohio?
A. Northeast Ohio is looking for ways to generate
revenue for funding police, fire, and other valuable services.
As long as the state operates the casino, such an establishment
could generate millions of dollars, which could be directed toward
these and other services.
Q. Is this a common way to generate revenue?
A. In the history of our nation, gambling
has often been used to finance projects and services. Lotteries
were used to finance the Jamestown Colony in Virginia, as well
as many public roads and buildings. Even some colleges and universities,
such as Harvard, Williams, Brown, Dartmouth, and Yale, were partially
endowed by lotteries. Many states currently use lotteries as a
way of funding public education and related programs. So it is
not surprising that when a state is looking for new ways to generate
revenue, gambling quickly comes to mind.
Q. What would be some of the advantages of legalized
gambling in Ohio?
A. In addition to generating funds for
important services, a casino in the Cleveland area could generate
an estimated 7,000 new jobs. If more people see it as an attraction,
a casino would bring in tourists and help to boost the local economy.
Ohio residents who wish to gamble in a casino environment would
find a local casino more convenient than traveling to Detroit,
Atlantic City, Las Vegas, or other places that offer legalized
gambling.
Q. Would there be any disadvantages to bringing a
casino to northeast Ohio?
A. Certainly. The benefits described above must
be weighed carefully against the potential harm they can cause
to an area. Studies have shown that with the addition of casinos,
many alarming trends become visible over time. We could expect
to see higher incidences of bankruptcy and gambling addiction among
the local population. Studies have also associated the presence
of casinos with an increase in local rates of crime, murder, suicide,
and even divorce.
Q. Is it true that legalizing gambling would decrease
illegal gambling in the region?
A. This is a common myth, and the opposite is actually
true. Evidence from Britain, Australia, and America confirms that
the presence of legalized gambling actually increases the incidence
of illegal gambling. For example, in Nevada, where sports betting
is legal, one can easily find a bookie, who can sometimes offer
better odds, accept bets on a credit system, and provide unreported
(and, therefore, untaxed) winnings. Because illegal operations
can offer this type of service, they often spring up as a form
of competition around legal gambling establishments.
Q. If people knew more about the mathematics of gambling,
would they stop doing it?
A. I don't think so. State lotteries typically offer
very poor odds, and these odds are readily available on the state
lottery Web page. Even if the general public were more aware of
these odds, my guess is that millions of people would still line
up to buy lottery tickets. When there is hope of winning a big
prize, people don't always act logically. Casinos will always have
customers because they are attractions in and of themselves. Even
someone who visits a casino "just to watch" can quickly
get drawn in by the excitement and find themselves betting on the
various games available. You just have to keep in mind that, over
time, the casino always wins. |