| INTRODUCTION |
| Video gambling machines are low-stakes, fast-action
games that are as easy to play as a slot machine. And, for many casinos
and revenue-hungry states, video gambling machines are gigantic moneymakers.
Before installing video gambling machines in 1989, South Dakota generated
about $9 million a year in lottery revenues. By 1994, the revenue
from the state’s 7,677 video gambling machines had soared to $1.1 million
a
week, making it the second-largest revenue source for the state’s general
fund.1
Claiming that casinos and lotteries in neighboring states are hurting dog track revenues in Alabama, some gambling supporters contend the only way to keep the tens of millions of dollars in Alabama that residents are gambling out of state is to expand gambling opportunities locally. Other members of the pro-gambling lobby warn that casino gambling on Indian lands in Alabama is just around the corner, and the state should legalize additional forms of gambling to level the playing field for existing gambling interests. Despite the appeal of video gambling as a supplement to dog track racing and a means of keeping gambling money in Alabama, it should be noted that other states are eliminating the machines, which are often installed in bars, Laundromats, and truck stops. In Louisiana, for example, 33 of the state’s 64 parishes voted 
in November 1996 to ban video poker machines.2
One possible reason for this backlash is that video gambling is one of the most addictive forms of gambling. The machines, which are designed for long-term, fatigue-free play, rapidly drain money from players. In states with easy access to these machines, up to 14 percent of 18-to-21-year-olds are addicted to video gambling.3 The games are especially addicting to women: Dr. Robert Hunter, clinical director of a gambling treatment center in Las Vegas, notes 97 percent of his female patients are addicted to video gambling machines.4 Not only is video gambling extremely addictive, it is a highly unstable source of income. While the short-term revenue prospects for video gambling are good, research from other states suggests profits from the machines would plummet in only three to five years, forcing the state to consider legalizing additional forms of gambling to prop up the sagging industry. Ironically, the federal laws regulating Indian gambling might actually hasten the construction of Indian casinos in Alabama if video gambling machines are legalized. This report uses research from other states with legalized gambling to examine the impact of legalizing video gambling in Alabama. |
| VIDEO GAMBLING AND INDIAN GAMBLING |
| Since 1993, gambling supporters have told the state
that a greater number and variety of games must be legalized because it
is only a matter of time before Indian tribes like the Poarch Creeks receive
permission from the Department of the Interior to build casinos on their
tribal lands in Wetumpka and Atmore. Because the federal government
recognizes each tribe as its own sovereign nation, the state would be unable
to regulate the games or tax any gambling revenues.
Presently, however, it is not possible for Indian tribes to build unregulated, tax-exempt casinos in Alabama without the state’s permission. Moreover, the U.S. Supreme Court ruled in March 1996 that tribes cannot sue states 
that do not wish to make compacts allowing casinos on tribal lands.
Based on this decision, Alabama Attorney General Bill Pryor and other states’
attorneys general agree that the Secretary of the Interior has no authority
to allow Indian gambling.5
Finally, except for states that have already legalized Indian gambling,
no state governor’s office has said the Supreme Court’s decision reduced
their ability to influence whether casino gambling would be legalized on
tribal lands.6
At present, all Indian gambling is controlled by the Indian Gaming Regulatory Act of 1988 (IGRA), which gives Native American tribes the privilege of matching any existing form of gambling in their state on tribal lands.7 Thus, if the state passes legislation legalizing video gambling or any other game of chance, Indian tribes would almost certainly petition the state for a compact allowing gambling on their lands. The legalization of video gambling on tribal lands may not be the end, however, of attempts by Indian tribes to expand their gambling operations. In Wisconsin and other states, tribes have sought to have all Indian owned land declared tribal land. Because of this situation IGRA now allows new lands to be used for gambling upon application to the Department of the Interior.8 In other words, a tribe could purchase property anywhere in a state, have it declared tribal land, and construct casinos at will. |
| VIDEO GAMBLING AND INTERSTATE GAMBLING |
Another argument made by gambling supporters is
that Alabama must expand gambling opportunities to reduce the number of
local dollars being spent in Mississippi casinos and on state-sponsored
lotteries in Florida and Georgia. One letter circulated three years
ago by gambling supporters among state legislators claimed Alabamians spent
$300 million in Mississippi’s Gulf Coast casinos and $80 million on the
Georgia ($35 million) and Florida ($45 million) lotteries in 1995.
According to data from the Mississippi Gaming Commission, however, casino
visitors from Alabama spent only $142 million. The Commission’s figures
do not include revenues from the Choctaw-owned Silver Star Casino in Philadelphia,
which, with 3,000 slot machines and 2,300 employees, is the largest casino
in Mississippi. The Silver Star’s revenues, however, could not possibly
surpass the combined revenue of the 12 Gulf Coast riverboat casinos with
12,899 slot machines and 12,263 employees.9
If gambling supporters are concerned about retaining some of the millions of dollars passing in and out of Alabama on a daily basis because of interstate commerce, attention would be better focused on neighboring states without casinos or lotteries. For example, less than three percent of Arkansas’ travel and tourism revenue comes from visitors from Alabama, yet Alabama residents spent $60.1 million in Arkansas in 1995.10 According to the Travel Industry Association of America, Alabama tourists spent $648 million in Tennessee in 1995, almost three times the amount spent on gambling in Mississippi’s Gulf Coast casinos, Florida, and Georgia combined.11 If the pro-gambling lobby is concerned about other states bleeding money away from Alabama, they would do better to work at duplicating the family-oriented, non-gambling tourist attractions in Tennessee and Arkansas than to try to duplicate the socially destructive gambling attractions of Mississippi. |
| THE ECONOMICS OF GAMBLING |
| Can gambling enhance a state’s general economy? Several studies conducted by the gambling industry claim gambling improves a state’s economic outlook. But the truth is, the market for legalized gambling in America is saturated. Less than 10 years ago, the few states with legalized casino gambling could expect the novelty of the games would draw many out-of-state tourists who otherwise would have to travel to New Jersey or Nevada to gamble. Today, 26 states have legalized casino gambling, 42 states have pari-mutuel wagering, and 37 states including the District of Columbia have government-sponsored lotteries.12 |
| “Predatory” Economics |
| As gambling venues become more widespread, legalized
gambling now must generate profits mainly by cannibalizing the local economy,
prompting people to gamble money they otherwise would have spent at preexisting
businesses in the local marketplace.13
Eventually, the massive diversion of revenue from the local economy forces
many local businesses to close. The predatory practices of casino
operators have a particularly damaging effect on the restaurant and hospitality
trade. In Atlantic City, for example, restaurants within the city’s
12 casinos gave away or sold at below-market prices $186.5 million worth
of meals in 1995 to keep customers near the gaming tables. Meanwhile,
the number of restaurants outside the casinos has plunged from 243 in 1978
to less than 50 today.14
The hospitality industry in Minnesota has also experienced a decrease in sales due to legalized gambling. A 1992 survey of 908 hotel, restaurant, and resort managers taken by the Minnesota Restaurant, Hotel and Resort 
Associations reported a net loss of 919 jobs due to casino gambling. Moreover,
four out of every 10 respondents say they have lost business, and 53 percent
believed business would continue to decline, compared to only 10 percent
who believed business would improve because of gambling. One respondent
noted: “How can I compete with casinos who offer a trip to [a casino] for
$5 and $30 of silver to play with, plus a coupon worth $5 to eat on?
Thanks for nothing from our state government!”15
In some states and municipalities small business organizations and trade unions have actively opposed the locating of gambling sites in their region. The Greater Washington Board of Trade, for example, voted unanimously against Mayor Sharon Pratt’s initiative to bring casino gambling to the nation’s capitol in 1993.16 Existing businesses are not the only ones to suffer from the presence of legalized gambling; except for the service industries associated with gambling, new businesses avoid locating near gambling facilities.17 Because the presence of gambling facilities correlates with increases in crime, higher social service costs and often higher corporate, personal, and real estate taxes, it acts as a “red flag,” warning businesses away from the potential site.18 |
| Video Gambling as a Long-Term Revenue Generator |
| While the introduction of video gambling machines
may initially produce millions of dollars in revenues, the long-term revenue
opportunities are poor.19 According
to Dr. Robert Goodman, an economics professor at Hampshire College in Massachusetts,
it takes about three to five years for gambling interests to drain the
existing consumer base.20 However,
because Alabama’s per-capita income is significantly lower than the national
average and the state lacks large, dense urban centers, video gambling
could siphon off local assets at a much faster rate.
Clearly, local assets will be devoured. With more than 100 casinos along the Mississippi River within a day’s drive for tens of millions of people, and state-sponsored lotteries in Georgia and Florida, there would be little reason for tourists to come to Alabama to gamble.21 Moreover, if video gambling is legalized to keep Alabamians from gambling in Mississippi, Florida, or Georgia, it is an admission that it is Alabamians the gambling interests want to prey upon. Eventually, the appearance of more exciting games in other states or on in-state Indian reservations with casinos would cause revenues for existing games to decline, ending the highly profitable, yet brief, “honeymoon” period.22 Once profits begin to fall, pressure will again be placed on the state legislature to authorize additional varieties of gambling, namely casinos, to lure back customers.23 Thus, the real issue is not about video gambling, it is about casinos. For many states that adopt low-stakes legalized gambling activities such as a state lottery, the progression to “harder” forms of gambling is swift. In Illinois, the state lottery was initiated in 1974. Many lottery variations were introduced during the 1980s; by 1990 the number of off-track betting parlors had expanded significantly, and riverboat gambling was legalized; and in 1991 video-machine gambling was proposed, as was a $2 billion land-based casino complex in Chicago. In South Dakota, the transformation was even faster. In 1987, a state lottery was established; by late 1989, the city of Deadwood initiated land-based casino gambling, which was followed by casino gambling on Indian reservations in 1990; and by 1991, video-machine gambling was available throughout the state.24 There is no reason to believe the same thing would not happen to Alabama if video gambling machines were legalized in the state. “Unless massive numbers of new tourists are attracted by the advent of legalized gambling activities,” says Dr. John W. Kindt, professor of commerce and legal policy at the University of Illinois, Urbana-Champaign, “the preexisting economy and tourist trade are eventually depleted, leaving the area without economic growth, jobs, or tax revenues. Economically speaking, legalized gambling is a sucker’s bet.”25 On the other hand, states with little or no legalized gambling are discovering the absence of gambling is an economic asset worth touting. Utah, one of only two states to have no legalized gambling at all, actively promotes its gambling-free status as an economic plus. Utah Governor Mike Leavitt emphasizes this advantage:
|
| VIDEO GAMBLING AND ADDICTIVE BEHAVIORS |
| If video gambling is legalized in Alabama, it will
almost certainly draw people into gambling who have not gambled previously.27
In Texas, for example, researchers at the state Commission on Alcohol and
Drug Abuse found the introduction of a new gambling activity—in this case,
a state lottery—increased the number of adults who gambled on any game
from 48.6 percent in 1992 to 67.7 percent in 1995.
As gambling has become increasingly available and acceptable, the number of problem and pathological gamblers has also increased. In 1997, the Harvard Medical School of Addictions released a study summarizing the findings of 120 previously conducted studies on the prevalence of gambling disorders. They found the number of adults in the United States and Canada affected by severe gambling disorders grew from 0.84 percent between 1977 and 1993 to 1.29 percent between 1994 and 1997. In addition, 3.88 percent of teenagers and 4.67 percent of college students were found to have a gambling problem—three to four times the likelihood of adults.28 |
| The Fast World of Video Gambling |
In what casino executives are calling a “marriage
of convenience and technology,” video gambling machines are giving gamblers
more opportunities to get to—and spend—their money on the casino floor.
At present, gamblers can open an account at a specific casino, receive
a debit card instead of bills
and quarters, and wager by swiping the card through a magnetic reader on
a gambling machine. Some casinos are considering sending promotional
cards to potential customers with dollar values already on them.
Players could use this card instead of money at various gambling activities,
restaurants, or shows. Players can now transfer funds directly from
a checking account to credit on a gambling machine. New gambling
machines will allow customers to bypass the $300-a-day limit on an ATM
card, while others will allow access to credit cards without a Personal
Identification Number (PIN).29
The video machines themselves are carefully designed to maximize the time a gambler plays and the amount he or she bets. Crisp, high-resolution screens “keep players from getting fatigued,” according to a spokesperson for Gtech Corp., a video game maker. The “Midas Touch” machine from WMS Industries has a touch screen that displays the cards and even offers strategy tips for each hand. To accept the recommendation, the player only has to tap a button. “You can rest your hand on the button. You don’t ever have to move your hand,” says Neil Nicastro, the president of WMS.30 Sounds are also an important part of play. WMS “simulates the sound of coins clinking into a tray. We play little ditties to reinforce wins,” says Nicastro. Other machines play the “Hallelujah Chorus” when players make a big win.31 The fast action, ease of play, and emphasis on quick money makes video gambling particularly addictive. “When people buy something at the mall, they usually have a few weeks to think about the consequences of their purchase before the bill arrives,” says Dr. Valerie Lorenz, executive director of the National Center for Pathological Gambling. “Sitting in front of a video poker machine, however, there is no time to think about how much they have wagered. The game is usually over within six to eight seconds.”32 Robert Hunter, clinical director of Charter Hospital in Las Vegas, one of the largest treatment centers for compulsive gamblers, agrees:
“There are some who find in gambling an immediate
thrill and a high, and they can be addicted in the first stage, which [is
called] the ‘Winning Stage,” says Joseph Dunne, founder and former president
of the National Council on Compulsive Gambling. “The worst thing
that can happen to a person,” notes Dunne, “would be winning the first
time…. Because they won, they think they have special knowledge—that is
the trap.”34 As players become
more addicted to the games, though, the “high” they receive from winning
diminishes to only a few minutes.35
“Near-misses” —that is, almost winning—are just as dangerous, since they
tend to stimulate further play.36
As noted earlier, video gambling machines are particularly addictive to
female gamblers. Dr. Henry Lesieur of the Criminal Justice Science
Department at Illinois State University notes women tend to gravitate toward
single-player machines instead of high-stakes table games that have traditionally
been the domain of male players.48
In fact, slot machines and the like were originally positioned to keep
women occupied while their spouses played cards, craps, or roulette, says
Denis Rudd, director of the hospitality and tourism program at Robert Morris
College in Pittsburgh.49 “It’s
the 90’s equivalent of a quilting bee,” says Carol O’Hare, executive director
of the Nevada Council on Problem Gambling and herself a recovered compulsive
gambler. “Women will sit side by side at the machines and have a
social experience.”50 The “social
experience” of video gambling comes at a cost, though: an increasing number
of women are becoming addicted to the games. Whereas almost two-thirds
(62 percent) of lifetime problem gamblers are male, half (50 percent) of
all current problem gamblers are female, according to a 1994 study by the
Alberta Alcohol and Drug Abuse Commission.51
In one treatment center for compulsive gamblers in Las Vegas, 97 percent
of the female patients are addicted to video gambling.52 |
| The Cost of Addiction |
| The cost of dealing with even a small number of
problem gamblers is staggering. According to a 1994 economic analysis
by Dr. Robert Goodman, director of the United States Gambling Research
Institute, the average cost to society of a compulsive gambler is $13,200
a year. These costs include dollars diverted to gambling from existing
businesses and lost productivity while on the job.53
If legalizing video poker increased the number of adult pathological gamblers in Alabama to the national average of 1.29 percent of the state’s 1998 population (3,030,049 persons at least 21 years old), an additional 13,636 pathological gamblers would be created, at a cost to the state of at least $179.9 million per year.54 Note that these estimates do not include the costs for crimes committed, incarceration, rehabilitation, debt accumulation, or other socioeconomic costs. Other states have discovered the social costs connected with the introduction of legalized gambling outweigh those of any revenue gained. The total social cost of compulsive gamblers in Connecticut in 1991, for example, was $500 million, nearly $200 million more than the state’s total revenue from legalized gambling.55 |
| Emotional Costs |
| The cost of pathological gamblers to society is
expressed in more than dollars and cents. The gambler himself often
degenerates from an honest, intelligent person to one who has almost no
appreciation for the consequences of his actions. A random sample
of selected household residents in Canada found that, if a person is unfortunate
enough to become a long-term pathological gambler, they are more likely
to be child or spouse abusers, and to have spent long periods unemployed.56
A 1996 study in Australia of the socioeconomic effects of gambling found
27 percent of respondents who gambled regularly said family or friends
have criticized their gambling, and 22 percent felt gambling was more important
than socializing. The study also noted that individuals who play
video gambling and other gambling machines were even more likely to have
family problems such as broken relationships and arguments about money
than those who regularly play the lottery.57
For many problem gamblers, the lure of gambling is not their only addiction. A variety of studies have revealed between 47 and 52 percent of pathological gamblers also have a problem with alcohol or drugs.58 “About three out of every 10 people undergoing drug or alcohol abuse treatment have a gambling problem,” says Arnie Wexler, executive director of the New Jersey Council on Compulsive Gambling. “It’s to the casino’s advantage to pump somebody full of alcohol.”59 Not surprisingly, gambling losses often lead to thoughts of desperation and even suicide. Not only have several studies found pathological gamblers have higher rates of depression than non-pathological gamblers, recent research suggests problem gambling induces depression, instead of depression leading to gambling.60 In one study, a sample of 500 participants in Gamblers Anonymous was surveyed to gather data on suicidal history. Of the 162 who returned the survey, 47 percent reported they had considered suicide, and 13 percent had attempted suicide. By comparison, an estimated 9.9 percent of heroin addicts in methadone treatment programs attempt suicide, and only about 1.1 percent of the general population ever attempt suicide over their lifetime.61 
Even if they wish to receive help, problem gamblers are quickly learning
the mental health community is not equipped to help them. Although
there are about 10,000 treatment programs around the country for substance
abusers, fewer than 150 centers treat compulsive gamblers. An even
smaller number specifically cater to problem gamblers.62
Only four states—Connecticut, Maryland, New Jersey, and New York—have public
gambling treatment centers.63
To complicate matters, only about 1,000 therapists and counselors nationwide
are certified to provide gambling treatment. Often, insurance companies
do not cover the costs of gambling-related therapy.64
The number of Gamblers Anonymous programs across the nation, however, has
grown by more than 400 chapters since 1990, including four chapters in
Alabama.65 |
| Help from the Industry? |
| Representatives of the gambling industry testified
in 1995 before the House Judiciary Committee that they are taking steps
to address the problem of compulsive gambling, yet little has been done.
In Oregon, for example, the state legislature eased its concerns about
compulsive gamblers by ordering that information about a hotline for troubled
gamblers to call be placed on each machine. Treatment experts, however,
say gamblers do not know they’re in trouble until they’re broke.
“The degrading thing about our government is that they will resort to this,”
says Virginia Vandehey, chairperson of the Oregon Council on Problem Gambling.66
To appease critics of the games in New Jersey, the state has promised that 0.5 percent of all video gambling revenues will go to fund gambling treatment centers.67 One-half of one percent may sound appallingly small, yet one in three states with legalized gambling earmarks no money for education, prevention, treatment, and research concerning problem gambling. Of those states designating money, funding ranges from $10,000 to more than $2 million.68 At present, the state of Alabama devotes none of its annual budget to any specific programs related to problem or pathological gambling.69 “The casino industry is heavily dependent upon the revenues of psychologically sick people,” says Dr. Earl Grinols, an economist at the University of Illinois, who calculates that more than half of a casino’s take comes from problem and pathological gamblers.70 As such, the industry has little, if any, real interest in supporting effective treatment programs for problem gamblers. 
Problem gamblers are not the only ones who suffer; the average pathological
gambler affects, directly and negatively, eight other people, including
family, friends, and co-workers.71
Almost 20 percent of wife abuse cases involve domestic disputes related
to gambling.72 Child abuse
also increases dramatically when gambling comes into an area, according
to a 1995 report from Maryland’s attorney general.73
A survey of 250 members of Gamblers Anonymous revealed 10 percent of gamblers’
children were abused by the gambler; 25 percent of children had significant
behavioral problems such as poor school work, running away, drugs, alcohol,
or gambling of their own; and 50 percent of spouses said they were physically
or verbally abused by the gambler.74
A survey of compulsive gamblers in Illinois found 26 percent were divorced
or separated due to gambling problems.75
Spouses and children of gambling addicts are also at far greater risk for
suicide attempts.76 |
| VIDEO GAMBLING AND UNDERAGE GAMBLING |
| The fact it is illegal for teenagers to play video
gambling or any other type of gambling does not seem to keep them from
playing.77 At least 75 percent
of all high school students have gambled, making it “an average and expectable
activity among adolescents,” according to Dr. Howard Shaffer of Harvard
Medical School.78
“Gambling in our culture is not seen as a problem,” says Jean Dede, a certified compulsive gambling counselor at an addiction treatment center in Springfield, Illinois. “For young people, the lure of gambling can be hard to resist. Kids love fantasy and action. 
They want to have cash and look good. [Gambling] becomes about power
and getting something for nothing.”79
Teenagers are particularly susceptible to the instant gratification and
excitement that comes with gambling. A study by Durand Jacobs, a clinical
professor of psychiatry at Loma Linda University Medical School and an
expert on youth gambling, concluded adolescents are three times as likely
as adults to become problem gamblers.80
So many teenagers are gambling that 3.88 percent, more than 2.2 million adolescents, are already addicted to gambling, according to a 1997 report by the Harvard Medical School Division of Addictions. This number will likely continue to grow, since the same report noted an additional 5.7 million teenagers are at risk of becoming pathological gamblers.81 In states where video gambling machines are commonplace, teenagers are extremely likely to become addicted to them:
College-age adults are also significantly more likely to develop problems
with video gambling than older adults. Another study conducted in
Louisiana in 1995 by Dr. Rachel A. Volberg of Gemini Research found 14.3
percent of 18-to-21-year-olds surveyed were classified as having serious
problems with gambling. By comparison, this rate of addiction is
three times higher than that of older adults in Louisiana (4.4 percent)
and five times higher than the national adult average (2.8 to 4.6 percent).83
“Video gaming is the only legally accessible type of gambling for that
age group,” says Dr. James Westphal, a psychiatry professor at Louisiana
State Medical School at Shreveport, “so we can conclude it is the primary
culprit.”84 |
| VIDEO GAMBLING AND CRIME |
| Besides hurting themselves and their families, problem
gamblers also commit crimes against the rest of society. In general,
crime rates in cities with casino gambling grow at nearly double the national
average, according to a 1996 U.S. News & World Report analysis
based on FBI statistics.85
In 1981 the city of Las Vegas had the nation’s highest per capita crime
rate. The city reduced its crime rate by employing brutally aggressive
tactics by law enforcement personnel, incarcerating 10 percent of its total
population.86 Even after this
crackdown, however, Las Vegas had five times as many violent crimes in
1994 as it was able to solve, according to an Associated Press review of
FBI data.87
Atlantic City, trying to learn from past mistakes made in Las Vegas, passed the most restrictive gambling laws in the country at the time. Nevertheless, after casinos were legalized in 1978, crime increased rapidly. Pickpocketing increased 8,000 percent, larceny 500 percent, and robberies tripled, as did assaults.88 Although crime in Atlantic City has decreased in recent years, two-thirds of all crimes are gambling-related.89 Crime rates have also increased in the communities surrounding Mississippi gambling sites.90 In these communities, total crime rates have increased, including robberies, embezzlement, prostitution, credit card forgery, and illegal drug possession.91 Bank robberies along the Mississippi coast have also increased fourfold since 1992.92 In Tunica, police chief Chuck Bolen reports arrests for drunk driving have increased 500 percent.93 “Common sense would dictate if you’re giving free drinks you’re going to have drunks on the road,” says Tommy Moffett, chief investigator for the Biloxi Police Department.94 Jeff Bloomberg, state’s attorney for Deadwood, South
Dakota, describes how the town is being hit by a surge in crime:
A study of crime trends in Wisconsin from 1981 to
1995 by Dr. William N. Thompson and his associates found the rates for
major and lesser crimes for counties with casinos were 6.7 percent and
12.2 percent higher, respectively, than adjacent counties without casinos.
In other words, casino gambling brought an additional 5,277 serious crimes
and 17,100 lesser offenses per year to Wisconsin than if gambling had not
been legalized.96
All taxpayers contribute toward the cost of policing,
judging and incarcerating criminals. Gambling increases those costs.104
Multiple studies reveal the following:
|
| Gambling and Corruption |
When the infamous bank robber Willie Sutton was
asked, “Why do you rob banks?,” he replied, “That’s where the money is!”
If opportunity is a driving force for crime, communities with legalized
gambling can expect to attract criminals and corruption.109
Nationwide, the influence of organized crime is well documented:
|
| CONCLUSION |
Legalizing video gambling in Alabama is a dangerous
means of improving profits for the state’s existing gambling sites.
Despite the revenue windfalls many states experience when the games are
first legalized, the social and economic costs to the state vastly outweigh
any short-term benefits.
By feeding upon the incomes of local residents, video gambling machines
remove dollars from the economy that might otherwise go to preexisting
businesses, leading to reduced business and bankruptcies. When gambling
revenues begin to decline, other forms of gambling are often introduced
to lure back players, depleting the local economy further.
Video gambling machines are extremely addictive, especially to underage gamblers and women. In states where the machines are commonplace, the number of problem and pathological gamblers is often significantly above the national average. Even a slight increase in the percentage of compulsive gamblers in Alabama could cost the state hundreds of millions of dollars in social and economic costs. In addition to harming the economy, gambling addicts often destroy their families and themselves. Almost one-third of all pathological gamblers are co-addicted to drugs or alcohol, and more than 40 percent become depressed or even attempt suicide after losing significant amounts of money. Sadly, most treatment centers for drug and alcohol abuse are not equipped to care for problem gamblers, nor do most states set aside funds for the treatment or prevention of gambling addiction. Many gambling addicts turn to crime to support their habit. Where gambling is legalized, the crime rate roughly doubles. The millions of dollars in revenue video gambling machines initially produce also make the operation of the game a ripe target for crime and corruption. Legalized gambling is a serious threat to the family and society. There is however, another compulsive gambler who is rarely mentioned: the state itself. In trying to find additional sources of revenue, governments often begin to act like an addict, looking for the “big win.” Social and economic compromises are part of this downward spiral.118 Alabama is one of only a handful of states to have only minimal gambling activity. Rather than legalize video gambling or any other form of gambling, one of the best economic policies our state could establish would be to designate itself a “gambling-free” haven. Eliminating gambling altogether could mean lower costs for social services and crime control, and greater incentives for new and expanding businesses to locate in Alabama. Moreover, Alabama could promote itself as a safe, clean state for families to visit and settle in, thus dramatically improving the incomes and quality of life for all its residents. |
| ENDNOTES |
| 1 Terry Woster, “Video lottery bounces
back,” Argus Leader [Sioux Falls, SD], December 25, 1994, pp. 1A,
10A.
2 Lee Hancock, “Impact of Louisiana’s vote on gambling seems unclear,” Dallas Morning News, November 7, 1996, p. 15A; and Adam Nossiter, “Ballot losses signal end of gambling’s lucky run,” New York Times, November 19, 1996, p. A22. 3Rachel A. Volberg, “Wagering and problem wagering in Louisiana,” Report presented to the Louisiana Economic Development and Gaming Corporation, 1995, pp. 1-42; and James R. Westphal and Jill A. Rush, “Pathological gambling in Louisiana: An epidemiological perspective,” Journal of the Louisiana State Medical Society, vol. 148, 1996, pp. 353-358, as cited by James R. Westphal, Jill A. Rush, and Lee Stevens, “Gambling behavior and substance use among ‘high risk’ adolescents in northwest Louisiana,” submitted for publication to Journal of Gambling Studies, January 1997, pp. 3, 16. 4 William M. Buckeley, “Video betting called ‘crack of gambling,’ is spreading,” Wall Street Journal, July 14, 1992, p. B1. 5 Bill Pryor, Attorney General, State of Alabama, personal correspondence, February 11, 1997; and Nelson Kempsky, Executive Director, Conference of Western Attorneys General, personal communication, April 1996. 6 Of the 47 states the author attempted to contact, 23 responded. Four states—Kansas, Maine, Massachusetts, and North Carolina—stated the decision had no effect on them due to their existing compacts. Two states, Utah and Vermont, stated the decision did not affect them due to the absence of federally recognized tribal lands in their respective states. 7 Ivan L. Zabilka, “Native American gambling,” National Coalition Against Legalized Gambling Newsletter, May–June 1995, p. 1. 8 Ibid, p. 2. 9 “Casino patrons information: April 1–June 30, 1995,” Mississippi Gaming Commission, 1995; and “Casinos by region: April 1–June 30, 1995,” Mississippi Gaming Commission, 1995. 10 Charles McLemore, Arkansas Department of Tourism, personal communication, February 1997. 11 “Travel to and through Tennessee,” Travelscope 1995 (New York: Travel Industry Association of America, September 1996). 12 Frank Rich, “Woodstock generation trades peace and love for video poker and keno,” Des Moines Register, May 10, 1996. 13 Robert Goodman, “Cannibalization: The diversion of dollars from existing businesses to gambling enterprises,” in Legalized Gambling as a Strategy for Economic Development (University of Massachusetts–Amherst: Center for Economic Development, 1994), p. 51. 14 Missouri Council on Gaming Research Newsletter, May 1, 1996, p. 2. 15 Arnold J. Hewes, “Minnesota’s restaurants, hotels & resorts are ‘losers’ in gambling explosion, survey results reveal,” Minnesota Restaurant, Hotel and Resort Associations News Release, January 13, 1993. 16 Liz Spayd and Yolanda Woodlee, “Trade Board rejects D.C. casino plan,” Washington Post, September 25, 1993, pp. A1, A8. 17 John W. Kindt, “The negative impacts of legalized gambling on businesses,” University of Miami Business Law Journal, vol. 4, no. 2, 1994, pp. 103-113. 18 Ibid, pp. 107-108. 19 Missouri Council on Gaming Research Newsletter, February 15, 1996, p. 1. 20 Robert Goodman, “Cannibalization: The diversion of dollars from existing businesses to gambling enterprises,” pp. 51-56; and John W. Kindt, “The negative impacts of legalized gambling on businesses,” p. 100. 21 John Ritter, “Pace, purses not enough for gamblers,” USA Today, May 5, 1995, p. 2A. 22 Jeffrey L. Dense, “State-operated lotteries: Problems and prospects,” Unpublished doctoral dissertation, University of Oregon, 1992. 23 John W. Kindt, “The business-economic impacts of licensed casino gambling in West Virginia: Short-term gain but long-term pain,” West Virginia Public Affairs Reporter, vol. 13, no. 2, 1996, p. 22. 24 John W. Kindt, “The negative impacts of legalized gambling on businesses”, p. 96. 25 Ibid, p. 101. 26 Governor Mike Leavitt, This Week with David Brinkley, March 20, 1994, as cited by John W. Kindt, Ibid, pp. 121-122. 27 L. S. Wallisch, Gambling in Texas: 1995 surveys of adult and adolescent gambling behavior, Executive Summary. Austin, TX: Texas Commission on Alcohol & Drug Abuse, 1996. 28 Howard J. Shaffer, Matthew N. Hall, and Joni Vander Bilt, Estimating the Prevalence of Disordered Gambling Behavior in the United States and Canada: A Meta-Analysis (Boston, MA: Harvard Medical School Division on Addictions). 29 R. T. Parets, “Cash is no longer king,” International Gaming & Wagering Business, vol. 17, no. 12, December 1996, pp. 64-65. 30 William M. Buckeley, “Video betting called ‘crack of gambling,’ is spreading,” p. B1. 31 Ibid. 32 Valerie C. Lorenz, National Center for Pathological Gambling (Baltimore, MD), personal communication, February 17, 1997. 33 William M. Buckeley, Ibid. 34 Joseph Dunne, “The impact of gambling on families in America,” Proceedings of the 1990 Christian Life Commission Seminar on Addictions & Family Crises (Birmingham, AL: March 12-14, 1990), p. 80. 35 M. Dickerson, J. Hinchy, S. L. England, J. Fabre, and R. Cunningham, “On the determinants of persistent gambling behaviour. I: High-frequency video poker players,” British Journal of Psychology, vol. 83, May 1992, pp. 237-248. 36M. Griffiths, “Psychobiology of the near-miss in fruit machine gambling,” Journal of Psychology, vol. 125, no. 3, 1991, pp. 347-357. 37 Scott Dyer, “Expert discusses responsible play, problem gamblers,” The Advocate [Baton Rouge, LA], August 6, 1997. 38 Missouri Council on Gaming Research Newsletter, July 1, 1996, p. 2; “Confident Americans are deep in debt,” Fox News, March 20, 1997. http://foxnews.com/business/wires/f_0320_10.sml 39 Rachel A. Volberg, “Gambling and problem gambling in New York: A 10-year replication study, 1986-1995,” Report to the New York Council on Problem Gambling, 1996. 40 James R. Westphal and Jill A. Rush, “Pathological gambling in Louisiana: An epidemiological perspective,” pp. 353-358. 41 Valerie C. Lorenz Robert M. Politzer, and Robert A. Yaffee, “Final Report,” Maryland Task Force on Gambling Addiction, December 31, 1990, p. 19. 42 Valerie C. Lorenz, personal communication, February 17, 1997. 43 Ibid. 44 Robert D. Carr, Jerome E. Buchkoski, Lial Kofoed, and Timothy J. Morgan, “‘Video lottery’ and treatment for pathological gambling,” South Dakota Medical Journal, January 1996, p. 31. 45 Ibid. 46 Rachel A. Volberg, “Wagering and problem wagering in Louisiana;” and James R. Westphal and Jill A. Rush, “Pathological gambling in Louisiana: An epidemiological perspective,” pp. 353-358. 47 Dr. James Westphal, Department of Psychiatry, Louisiana State Medical School at Shreveport, February 17, 1997, personal communication. 48 Joanne Cleaver, “Ladies’ luck,” Chicago Tribune, March 2, 1997, p. 13-1. 49 Ibid, p. 13-8. 50 Ibid. 51 H. J. Wynne, Female Problem Gamblers in Alberta (Edmonton, Alberta: Alcohol and Drug Abuse Commission, 1994). 52 William M. Buckley, Ibid, p. B1. 53 Robert Goodman, “Cannibalization: The diversion of dollars from existing businesses to gambling enterprises,” Ibid. 54 Unaudited data produced by Current Population Survey, Annual Demographic Survey, March 1998 supplement, http://ferret.bls.census.gov. 55 Robert Goodman, “Cannibalization: The diversion of dollars from existing businesses to gambling enterprises,” p. 63. 56 R. C. Bland, S. C. Newman, H. Orn, and G. Stebelsky, “Epidemiology of pathological gambling in Edmonton,” Canadian Journal of Psychiatry, vol. 38, no. 2, pp. 108-112. 57 M. Dickerson, C. Allcock, A. Blaszczynski, B. Nicholls, J. Williams, and R. Maddern, An examination of the socio-economic effects of gambling on individuals, families, and the community, including research into the costs of problem gambling in New South Wales. Macarthur, Australia: University of Western Sydney, Australian Institute for Gambling Research, 1996. 58 Henry R. Lesieur, “Compulsive gambling,” Society, vol. 29, no. 4, 1992, p. 46; see also J. R. Cusack, K. R. Malaney, and D. L. DePry, “Insights about pathological gamblers: ‘Chasing losses’ in spite of the consequences,” Postgraduate Medicine, vol. 93, no. 5, 1993, pp. 169-176; and Henry R. Lesieur and S. B. Blume, “Characteristics of pathological gamblers identified among patients on a psychiatric admissions service,” Hospital & Community Psychiatry, vol. 41, no. 9, 1990, pp. 1009-1012. 59 Arnie Wexler and Sheila Wexler, “Compulsive gambling: The addiction connection,” The New Hope Foundation Topics & Commentary, vol. 1, no. 1, Autumn 1990, p. 1. 60 J. I. Taber, R. A. McCormick, A. M. Russo, B. J. Adkins, and L. F. Ramirez, “Follow-up of pathological gamblers after treatment,” American Journal of Psychiatry, vol. 144, no. 6, pp. 757-761; see also J. R. Cusack, K. R. Malaney, and D. L. DePry, Ibid; and Henry R. Lesieur and S. B. Blume, Ibid. 61 M. L. Frank, D. Lester, and Arnie Wexler, “Suicidal behavior among members of Gamblers Anonymous,” Journal of Gambling Studies, vol. 7, 1991, pp. 249-254. 62 Matea Gold, “Going for broke: Treatment options scarce for gamblers,” Los Angeles Times, December 15, 1998. 63 Ivan L. Zabilka, Striving after the Wind, (Wilmore, KY: Ivan Zabilka, 1996), p. 28. 64 Matea Gold, “Going for broke: Treatment options scarce for gamblers.” 65 Ronald A. Reno, Ibid, pp. 41-43. Gamblers Anonymous locations in Alabama provided by the Florida Council on Compulsive Gambling, Longwood, FL, personal communication, September 24, 1998. 66 William M. Buckeley, Ibid, p. B6. 67 Ibid. 68 Rachel A. Volberg, M. G. Dickerson, R. Ladouceur, and M. W. Abbott, “Prevalence studies and the development of services for problem gamblers and their families,” Journal of Gambling Studies, vol. 12, pp. 215-231. 69 O’Neill Pollingue, Division of Substance Abuse, Alabama Department of Mental Health and Mental Retardation, personal communication, March 25, 1997. 70 Ronald A. Reno, Ibid, p. 44. 71 Susan Barbieri, “The addiction of the 90’s,” Washington Post, November 30, 1992, p. D5. 72 Larry Braidfoot, Gambling: A deadly game (Nashville, TN: Broadman Press, 1985), p. 156. 73 J. Joseph Curran, Jr., “The house never loses and Maryland cannot win: Why casino gaming is a bad idea,” Presented to the Joint Executive–Legislative Task Force to Study Commercial Gaming Activities in Maryland, October 16, 1995, pp. 32-33. 74 Valerie Lorenz and Duane E. Shuttlesworth, “The impact of pathological gambling on the spouse of the gambler,” Journal of Community Pathology, vol. 11, 1983, p. 69. 75 Illinois Council on Problem and Compulsive Gambling, “Results of a 1995 survey of Gamblers Anonymous Members in Illinois,” June 14, 1995. 76 National Council on Problem Gambling, Inc., “The Need for a National Policy on Problem and Pathological Gambling in America,” Nov. 1, 1993, p. 7. 77 Howard J. Shaffer, “The emergence of youthful addiction: The prevalence of underage lottery use and the impact of gambling,” Technical Report 121393-100 (Boston: Massachusetts Council on Compulsive Gambling, 1993), as cited by James R. Westphal, Jill A. Rush, and Lee Stevens, “Gambling behavior and substance use among ‘high risk’ adolescents in northwest Louisiana,” p. 2. 78 Howard J. Shaffer and M. N. Hall, “Estimating the prevalence of adolescent gambling disorders: A quantitative synthesis and guide toward standard gambling nomenclature,” Journal of Gambling Studies, vol. 12, no. 2, 1995, pp. 193-214. 79 “Gambling addiction often starts early,” Illinois Times-Herald Online, February 23, 1999, www.thonline.com/news/022399/. 80 Durand F. Jacobs, “Illegal and undocumented: A review of teenage gambling and the plight of children of problem gamblers in America,” in Howard J. Shaffer et al. (Eds.), Compulsive Gambling: Theory, Research and Practice (Lexington, MA: Lexington Books, 1989). 81 Howard J. Shaffer, Matthew N. Hall, and Joni Vander Bilt, Estimating the Prevalence of Disordered Gambling Behavior in the United States and Canada: A Meta-Analysis (Boston, MA: Harvard Medical School Division on Addictions), pp. 34, 51. 82 James R. Westphal, Jill A. Rush, Lee Stevens, Ron Horswell, and Lera Joyce Johnson, “Statewide baseline survey: Pathological gambling and substance abuse—Louisiana students, 6th through 12th grades” (Louisiana State University Medical Center, Department of Psychiatry, April 27, 1998). 83 Rachel A. Volberg, “Wagering and problem wagering in Louisiana;” and James R. Westphal and Jill A. Rush, “Pathological gambling in Louisiana: An epidemiological perspective.” 84 Dr. James Westphal, Department of Psychiatry, Louisiana State Medical School at Shreveport, February 17, 1997, personal communication. 85 Joseph P. Shapiro, “America’s gambling fever,” U.S. News & World Report, January 15, 1996, p. 59. 86 Robert Abrams, “Report of the Attorney General Robert Abrams in opposition to legalized casino gambling in New York State,” May 1981, p. 2, as cited by Better Government Association, Staff White Paper: Casino Gambling in Chicago (October 1992), p. 106. 87 Missouri Council on Gaming Research Newsletter, February 15, 1996, p. 2. 88 George Sternleib and James D. Hughes, Atlantic City Gamble (Cambridge, MA: Harvard University Press, 1983), p. 1982, as cited by William N. Thompson, Ricardo Gazel, and Dan Rickman, “ Casinos and crime in Wisconsin: What’s the connection?” Wisconsin Policy Research Institute Report, November 1996, p. 5. 89 Atlantic City Police Department statistics, 1990, as cited in Illinois State Police, Division of Criminal Investigation, Intelligence Bureau, How Casino Gambling Affects Law Enforcement, April 16, 1992. 90 Hancock County, Mississippi, Crime Statistics, 1994, as cited by William N. Thompson, Ricardo Gazel, and Dan Rickman, Ibid. 91 Ibid; John Archibald and Bob Blalock, “Mississippi beach towns enjoy boom, face new ills,” Birmingham News, August 1, 1993. 92 Sharon Fitzhugh, “Quandary steals in,” The Sun Herald, December 30, 1993. 93 James Popkin, “A mixed blessing for ‘America’s Ethiopia,’” U.S. News & World Report, March 14, 1994, p. 56. 94 John Archibald and Bob Blalock, Ibid. 95 “Montana warned of gaming problems,” Rapid City [South Dakota] Journal, February 10, 1991, p. C8. 96 William N. Thompson, Ricardo Gazel, and Dan Rickman, “Casinos and crime in Wisconsin: What’s the connection?” 97 Ibid, p. 2. 98 Joseph P. Shapiro, Ibid, pp. 60-61. 99 California Governor’s Office of Planning and Research, California and Nevada: Subsidy, Monopoly, and Competitive Effects of Legalized Gambling ES–3 (December 1992). 100 “Betting Virginia’s future on casino gambling: Gambling and crime,” Focus on the Family, 1995. 101 Valerie C. Lorenz, “Dear God, just let me win!” Christian Social Action, July/August 1994, p. 26; see also Henry R. Lesieur, “Compulsive gambling,” p. 47. 102 Robert Goodman, The Luck Business (New York: Free Press, 1995), p. 52. 103 Better Government Association, Ibid, p. 103. 104 “A busted flush,” The Economist, January 25, 1997, p. 28. 105 Robert Goodman, The Luck Business, p. 61. 106 William N. Thompson, Ricardo Gazel, and Dan Rickman, Ibid, p. 1. 107 “A busted flush,” Ibid. 108 “Betting Virginia’s future on casino gambling: Gambling and crime,” Ibid. 109 William N. Thompson, Ricardo Gazel, and Dan Rickman, Ibid, p. 3. 110 Florida Department of Law Enforcement, The Question of Casinos in Florida, August 15, 1994, p. 7. 111 Illinois State Police, Division of Criminal Investigation, Intelligence Bureau, Ibid, p. 9. 112 Chicago Crime Commission, Gambling Committee, Analysis of Key Issues Involved in the Proposed Chicago Casino Gambling Project. November 19, 1992, p. 83. 113 Graham Button and Rita Koselka, “Gambling gumbo,” Forbes, January 7, 1994, p. 48. 114 Ibid. 115 Joe Gyan Jr., “Reputed crime figure’s claim denounced,” The Advocate [Baton Rouge, LA], January 15, 1997, p. 5B; see also Florida Department of Law Enforcement, Ibid. 116 “Lawmaker sentenced in gambling case,” Las Vegas Sun, October 15, 1997. 117 Joan McKinney, “Jenkins awaits action by Senate committee,” The Advocate [Baton Rouge, LA], January 9, 1997, p. 1A; Gary L. Bauer, “Gambling industry claims scalp,” Washington Update, November 18, 1996. 118 “Legalized gambling: Can’t live with it—can’t live without it?” Minnesota Family Council Backgrounder (Minneapolis, MN: August 1992), p. 4. |
Lottery Opponents' $1.7 Million Beat Supporters' $5 Million
Opposition Grows to Video Gambling Bills
Group that Led Lottery Defeat Targets Video GamblingHere they go again! Electronic casinos pushed for February sessionVideo casinos at dog tracks emerging as major issue in February SessionFull Story of Our Temporary Victory Here.
SPECIAL THANKS TO CONSERVATIVE LEADERS WHO HELPED WIN THIS BATTLE: Lt. Gov. Steve Windom, Jim Cooper, State Sen. Bill Armistead, and the news media who stayed on top of this story (you know who you are). If you know others who should be commended here, please email.
MONTGOMERY (11/12/99) – When gambling interests announced they would push legislation for casinos at the state's four dog tracks in the 1999 special session and began running legal notices, citizen leaders stepped up quickly and said, "no."You would have thought that Montgomery politicians got the message in the October 12 referendum, but some did not.
State Sen. George Clay of Macon County announced Nov. 2 that he would introduce a bill to allow "games of skill" at the state’s four dog tracks. This means that casinos would operate in Birmingham, Mobile, Macon County, and Greene County. Who is Sen. Clay and why is he taking the lead for casinos at dog tracks?
This website served as central headquarters for citizens who successfully opposed dog track casinos in the Special Session. It will do so again starting January 13 to oppose this same legislation, which has been introduced for the February 1, 2000 Regular Session. Please bookmark this site and visit frequently. We will keep you updated on the progress of the bills and how you can help defeat them.
Mobile lawyer Jim Zeigler led a successful Internet campaign to defeat the Pensions for Politicians Amendment in the October 12 referendum. Now he is leading this on-line campaign against the dog track casinos bill. Who is Zeigler and why is he qualified to lead our campaign against casinos at dog tracks?
The backers believe that forces which opposed the lottery and video poker will become over-confident. Many of our people will incorrectly assume that the bills cannot pass.
The bills are cleverly written to avoid a statewide vote like the one on October 12. Instead, voters in four districts having a dog track will be the only voters. If any one of the four districts votes yes, then Alabama has a dog track casino in that one district alone. The districts eligible to vote are: City of Birmingham (not Jefferson County), Mobile County, Greene County, and Macon County.
In this sneaky way, voters in any one of these four districts will make the decision for all Alabama voters as to whether our state will sponsor casinos at dog tracks.
Their strategy is smooth and quiet. Unless you live in one of the four districts, you will have no right to vote on this issue.
We are considering organizing a "Citizens' Summit" in January or February to flesh out our strategy to defeat dog track casinos. If you would attend a Montgomery or Birmingham summit, please email your name, address, phone and email.
WE NEED YOUR HELP TO INFORM CITIZENS ABOUT THE CASINOS AT DOG TRACKS BILLS Here are three ways you can help. We will add others. Please bookmark this site and visit daily.
1. Send an email to everybody you know in Alabama. Tell them about this webpage. Use the fun, easy form below to email all your contacts NOW: Name | Email | You: |
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Website of Jim Zeigler's OnLine Law Office
Email Zeigler: E-Mail: Justvoteno@cs.com
"We fell victim to a campaign of misinformation on the Internet. I'm not so sure we don't need to ask the Legislature to look at that. That kind of communication is completely unregulated," said Sonny Brasfield, lobbyist for the Association of County Commissioners.
He said Zeigler's campaign amounted to little more than "Internet chain mail" that allowed "absolute and outright falsehoods and distortions to be spread without anyone being accountable."
Paid political ad by Tell It Like It Is, 3071 Teal Court, Mobile, Alabama 36695. Jim Zeigler, Chairman.