Social and Legal Costs of Compulsive Gambling

Abstract

T HIS ARTICLE REFORTS an analysis of new data on the cost to society of compulsive gambling. Such analyses must be available to policymakers who are called on to authorize and control gambling activities. They must also be accessible to courts as they wrestle with questions of assigning legal responsibility for the incidence of problem gambling and its consequences. The gambling phenomenon has witnessed significant expansion over the past decade. Prior to 1988, only two states-Nevada and New Jersey-permitted casino gambling. Then the Indian Gaming Regulatory Act (IGRA) was passed, bringing casino gambling to Native American lands in a score of states. Soon, commercial riverboat casinos appeared on the waterways of Iowa, Illinois, Mississippi, Louisiana, Indiana, and Missouri. South Dakota and Colorado authorized small-stakes casino gaming for selected towns, while Louisiana and Michigan approved high-rolling casinos in their largest cities. Additionally, in recent years the number of states with government-operated lotteries has increased to 37 (plus the District of Columbia), and states with horserace and dograce gambling have also increased in number. 1 Although a wave of gambling fever seems to be sweeping the country, the voices of gambling opponents are also growing louder. In

The Effect of Casino Proximity on Lottery Sales: Evidence From Maryland

“…Several authors have emphasized the importance of consumer benefits from the legalization of casino gambling (Collins 2003;Crane 2006;Eadington 1996;Walker 2013). There is also a substantial literature on the social costs of gambling; for examples, see Thompson, Gazel, and Rickman (1997) and Walker and Barnett (1999). Psychology research suggests that the prevalence of problem gambling has not been very sensitive to casino expansion in the United States The minimum monthly sales is zero for each game, as there is at least one ZIP code-month in the sample that did not have a particular game at some point.…”

Do Good Fences Make Good Neighbors? The Cross Border Impact of Casino Entrance

“…As previously noted, the development of a literature of the impacts of gambling is not limited to the commercial economic impacts. An extensive literature estimating the externalities associated with gambling activities includes such factors as crime and personal bankruptcy (see Gazel, Rickman, and Thompson 2001;Grinols and Mustard 2001;Kindt 2001;Thompson, Gazel, and Rickman 1997). Again, these issues are important but beyond the scope of this analysis.…”

Problems in Quantifying the Social Costs and Benefits of Gambling

“…Comorbidity remains one of the biggest challenges to researchers interested in measuring the effects of gambling on society (Shaffer, Hall, and Vander Bilt 1997; Walker and Barnett 1999). Few authors have even considered the implications of multiple disorders; they simply attribute the full costs to the gambling disorder, even when other problematic behaviors, such as alcoholism, were clearly present (e.g., Thompson et al. 1997; Grinols and Mustard 2001; Grinols 2004).…”

“…In many cases, social cost estimates are derived from responses given by Gamblers Anonymous (GA) members. Examples of this type of study include Thompson et al. (1997) and Schwer, Thompson, and Nakamuro (2003).…”