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A Special Trouble: Gambling Addiction
Critics of legalized gambling also disagree that one of the biggest negative side effects of the gambling industry is the cost of dealing with an increased population of problem gamblers. The costs of problem gambling can outstrip any of gambling's economic benefits, many of these critics claim.
Psychological counselors and researchers describe problem gamblers as people who are unable to properly control their gambling behavior. These gamblers will typically continue to lose more money in the hope of winning back their losses and getting ahead. In order to continue gambling, problem gamblers typically borrow lots of money that they don't pay back. They often fail to pay their taxes, utility bills, and other debts as well. As a result, many of them go bankrupt.
In 1990 the Council on Compulsive Gambling of New Jersey reported that compulsive gamblers in that state carried an standard debt of $40,000. In 1995 the Minneapolis Star-Tribune reported that personal bankruptcies in Minnesota increased by about 20 percent following the introduction of casinos in the early 1990s.
Problem gamblers also often turn to criminal activities, such as fleeting bad checks, filing false insurance claims, embezzling money, dealing drugs, and simply stealing, in order to keep up their habit. Their criminal activities not only result in money lost by their victims, but also taxpayers must bear new costs for police, court, and jail expenses. In 1994, according to a U.S. News & World Report computer analysis, crime rates in towns with casinos rose nearly 6 percent, while they fell 2 percent in the rest of the country.
The United States Gambling Study, which was conducted at the University of Massachusetts at Amherst from 1992 to 1994, surveyed the economic impacts of the expansion of gambling in the late 1980s and early 1990s and estimated the combined yearly costs, by state, of problem gamblers. According to the study the average cost, per state, was $13,200 for each problem gambler. The study also found as many as 9.3 million adults and 1.3 million teenagers with some form of problem-gambling behavior. Depending on the state, surveys in 1995 indicated that between 1.5 percent and 7 percent of the adult population were problem gamblers. The state with the 7 percent problem-gambling rate was Louisiana, where, since 1991, lawmakers have introduced casinos and electronic gambling machines at racetracks, bars, restaurants, and truck stops.
Although many Native American tribes have benefited economically from their casinos, they have also had to contend with problem gambling among their members. In 1995 Professor Don Cozzetto, director of graduate programs at the University of North Dakota's political science department, described problem-gambling rates in the Native American population as 2 or 3 times higher than those among the white population.
Even small increases in a state's problem-gambling inhabitants translate into enormous costs for other state residents, according to gambling's opponents. For example, if problem gambling increased by only 1 percent in the adult population of a sparsely populated state such as Iowa, the combined private and public costs, based on the estimates of the United States Gambling Study, would rise roughly $145 million yearly. The same 1 percent increase in a more populous state such as California would result in $1.5 billion in added costs. A 1995 Wisconsin Policy Research Institute report concluded that the introduction of casinos in Wisconsin had created problem gambling costs of at least $160 million a year.
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