The Effect of Recessions on Gambling Expenditures

This article examines the influence of the business cycle on expenditures of three major types of legalized gambling activities: Casino gambling, lottery, and pari-mutuel wagering. Empirical results are obtained using monthly aggregated US per capita consumption time series for the period 1959.01–2010.08. Among the three gambling activities only lottery consumption appears to be recession-proof. This series is characterized by a vast and solid growth that exceeds the growth in income and the growth in other gambling sectors. Casino gambling expenditures show a positive growth during expansions and no growth during recessions. Hence, the loss in income during recessions affects casino gambling. However, income shocks which are not directly related to the business cycle do not influence casino gambling expenditures. Pari-mutuel wagering displays an overall negative trend and its average growth rate is smaller than the growth in income, especially during recessions. The findings of this article provide important implications for the gambling industry and for local governments.     

Legalized gambling and its impacts in a central Minnesota vacation community: A case study

The economic and social effects of legalized gambling in a Minnesota community were studied (1) to inform the state's citizens and decision-makers of the community impacts of legalized gambling, particularly the cumulative community revenue loss, (2) to gather comparative data in a geographically and economically distinct area to determine the extent to which regional gambling rates and revenue losses vary, and (3) to refine existing research methods. The community and the types of gambling available are described. Data on gambling expenditures were obtained from various state agencies. Lottery and casino winners were interviewed to discover how their winnings were distributed. Annual (1991) player losses, profit margins, taxes, and resulting economic and social impacts are discussed. The most consequential findings are estimates of annual player losses ($3.3 million; $205 per capita) and community revenue losses ($2.2 million; $138 per capita). Per capita lottery and charitable gambling player losses were 9.4% lower than those of a community studied earlier; per capita community revenue losses were 7.6% lower. Research methods developed in this study provided more reliable estimates than those used previously. Suggestions are offered to increase reliability for future studies.     

Gambling Participation,Expenditure and Risk of Harm in Australia, 1997–1998 and 2010–2011

Gambling-related harm results primarily from financial losses. Internationally Australia continues to rank as the largest spending nation per capita on gambling products. This would suggest that Australian gamblers are at disproportionately high risk of harm despite almost two decades of industry scrutiny and regulation, and investment in research, treatment and education programs. However, declines in participation rates, per capita expenditure, household expenditure, national disposable income spent on gambling and problem gambling rates have been cited as evidence that fewer people are gambling, that gamblers are spending less, and that gambling safety in Australia has improved. The current study investigated these propositions using national population and accounts data, and statistics from Australia’s two population-representative gambling surveys conducted in 1997–1998 and 2010–2011. Despite a falling participation rate the study found no real change in the number of people gambling overall, and increasing numbers consuming casino table games, race wagering and sports betting. Further found were increases rather than decreases in average gambler expenditure, overall, and across most products, particularly electronic gaming machines (EGMs). Potentially risky levels of average expenditure were observed in both periods, overall and for race wagering, casino table gaming, and EGMs. Changes in the proportion of income spent on gambling suggest risks declined overall and for race wagering and casino table gaming, but increased for EGMs. Finally, while problem gambling statistics were not comparable between periods, the study found double the number of moderate risk gamblers previously estimated for 2010–2011 amongst the 2 million Australians found to have experienced one or more gambling-related problems. The findings have implications for public health policy and resourcing, and the way in which prevalence and expenditure statistics have been interpreted by researchers, government and industry in Australia and elsewhere.     

Casino gambling and bankruptcy in new United States casino jurisdictions

Using quarterly data on personal consumer bankruptcy for 1989:Q4 through 1998:Q1, this study examines the impact that the introduction of casino gambling has on per capita personal bankruptcy filings. Eight jurisdictions that have recently adopted gambling are compared with a set of matching control jurisdictions, communities without casinos that are economically and demographically similar to the eight communities. The results reveal that casino gambling is associated with an increase in personal bankruptcy in seven of the eight communities. In five of the seven the increase is statistically significant. However, an increase is not universal and in one community, Harrison County, Mississippi (Biloxi), bankruptcy per capita significantly decreased. It is speculated that this decrease is due to the features of both the community and the casino industry in Biloxi. Finally, the most significant changes in bankruptcy occur among Chapter 13, as opposed to Chapter 7, filings. This suggests that a growing portion of insolvents are creating repayment plans for their debts. Policy implications of the findings are discussed.     

Latent Class Analysis of Gambling Activities in a Sample of Young Swiss Men: Association with Gambling Problems,Substance Use Outcomes,Personality Traits and Coping Strategies

The study aimed to identify different patterns of gambling activities (PGAs) and to investigate how PGAs differed in gambling problems, substance use outcomes, personality traits and coping strategies. A representative sample of 4989 young Swiss males completed a questionnaire assessing seven distinct gambling activities, gambling problems, substance use outcomes, personality traits and coping strategies. PGAs were identified using latent class analysis (LCA). Differences between PGAs in gambling and substance use outcomes, personality traits and coping strategies were tested. LCA identified six different PGAs. With regard to gambling and substance use outcomes, the three most problematic PGAs were extensive gamblers, followed by private gamblers, and electronic lottery and casino gamblers, respectively. By contrast, the three least detrimental PGAs were rare or non-gamblers, lottery only gamblers and casino gamblers. With regard to personality traits, compared with rare or non-gamblers, private and casino gamblers reported higher levels of sensation seeking. Electronic lottery and casino gamblers, private gamblers and extensive gamblers had higher levels of aggression-hostility. Extensive and casino gamblers reported higher levels of sociability, whereas casino gamblers reported lower levels of anxiety–neuroticism. Extensive gamblers used more maladaptive and less adaptive coping strategies than other groups. Results suggest that gambling is not a homogeneous activity since different types of gamblers exist according to the PGA they are engaged in. Extensive gamblers, electronic and casino gamblers and private gamblers may have the most problematic PGAs. Personality traits and coping skills may predispose individuals to PGAs associated with more or less negative outcomes.     

Monitoring adolescent gambling in Minnesota

Youth gambling was investigated in a prospective sample of 532 Minnesota adolescents and young adults. Of particular interest was the possible impact among the study sample of a recent state lottery and of reaching the legal age for gambling on changes in the rate and type of gambling. Overall rates of gambling involvement and pathological gambling did not change across the 1.5 year interval. However, a preference for certain types of gambling activities (e.g., lottery, casino machines) significantly increased, whereas more informal and unregulated games (e.g., betting on games of personal skill) significantly decreased. Also, access to gambling activities by underage youths was high, suggesting the need for tighter controls of legalized games and greater awareness of this problem by the gaming industry and public health officials.Support for this study was provided by the Minnesota Department of Human Services, Compulsive Gambling Treatment Program. A version of this work was presented at the Seventh National Conference on Gambling Behavior, July 24, 1994, New London, CT.     

Sociodemographic Correlates and Morbidity in Lottery Gamblers: Results from a Population Survey

The aim of the current study was to examine the socio-demographic correlates, the association of mental and physical illness, and the prevalence of pathological gambling among three groups (1) those with lottery gambling only (2) those with lottery and other types of gambling and (3) those with other types of gambling only—such as playing cards, sports betting, horse racing, casino gambling etc. Data was used from a nationwide cross-sectional epidemiological nationally representative survey of the resident (Singapore Citizens and Permanent Residents) population in Singapore of 6616 Singaporean adults aged 18 years and older. All respondents were administered the South Oaks Gambling Screen to screen for pathological gambling. The diagnoses of mental disorders were established using the Composite International Diagnostic Interview and relevant socio-demographic data was collected using a structured questionnaire. Lottery gambling was by far the most popular form of gambling in Singapore, with 83.5 % of those who had ever gambled indicating that they had participated in lottery gambling. Those who participated in lottery gambling alone were more likely to belong to the older age group (as compared to the 18–35 years age group), be of Indian ethnicity, have a secondary or vocational education, and earn a lower income as compared to the other two groups. Our findings that those with pure lottery gambling were significantly less likely to be pathological gamblers and had significantly lower odds of psychiatric and physical morbidity as compared to the other two groups are unique and need further research.     

Gambling participation in the U.S.--results from a national survey

Demographic patterns of gambling participation in the U.S. were examined. A national telephone survey was conducted with 2,630 representative U.S. residents aged 18 or older. The sample as weighted for analysis was 48% male, 12% black, and 11% Hispanic. Respondents were questioned on 15 types of gambling: how often they played and how much they won or lost. Eighty-two percent gambled in the past year. Lottery was the most commonly played game, while casino gambling accounted for the largest extent of gambling involvement. Men and women were equally likely to gamble in the past year, but men gambled more frequently and had larger wins and losses, particularly on sports betting and games of skill. Blacks were less likely to have gambled in the past year, but blacks who gambled did so more heavily than other racial groups. Blacks and Hispanics were more likely than average to be pathological gamblers. The rate of past year gambling declined with age, but extent of gambling involvement among gamblers did not vary with age. Rates of participation in most forms of gambling increased with socioeconomic status, but higher socioeconomic status gamblers had lower rates of pathological gambling, and lower extent of gambling involvement, particularly for lottery. New Englanders gambled more heavily than other Americans. Comparison with past studies showed an increase in overall gambling participation in the U.S., and large increases in rates of participation in lottery and casino gambling.     

The Influence of Religiosity on Gambling Participation

Gambling is now a popular legal activity among people around the world. Despite numerous studies on individuals’ gambling behavior, few researchers examine the influence of religiosity on gambling participation. This study investigated the effect of religiosity, measured in terms of frequency of religious participation and importance of faith, on gambling participation across four different types of games: casino, track, lottery, and bingo. Using data collected by the National Gambling Impact Study Commission in 1999, the study found that there was indeed a significant difference in the frequency of religious participation between gamblers and non-gamblers. Moreover, it seemed like the more types of games one played, the lower was their frequency of religious participation. The importance of faith, however, did not seem to have a significant impact on gambling participation. The implications of these findings to businesses and public policy makers were discussed.     

First Year Impacts of Casino Gambling in a Community

Gambling has become both a major pastime for Canadians and a multibillion dollar industry providing provincial governments with an increasing proportion of their annual revenues. The continuing trend toward the legalization of gambling has made research on the public health impacts of gambling increasingly important to citizens and decision-makers. This article presents first year results of a multi-year project to measure the impact of the opening of Casino Windsor on gambling behaviour in Windsor, Ontario, Canada. A random telephone survey of gambling behaviour was conducted with 2,682 adult residents of metropolitan Windsor prior to the opening of Casino Windsor, and was repeated with 2,581 residents one year later. There were no statistically significant changes in the rates of problem and pathological gambling among men, women, or the general population one year following the opening of the casino. Although there was some evidence of higher-spending gamblers within the post-casino sample, no statistically significant differences were found between pre- and post-casino per capita gambling expenditures. Implications of these results for the future measurement and treatment of problem and pathological gambling are discussed.     

Gambling Participation and Problem Gambling Severity among Rural and Peri-Urban Poor South African Adults in KwaZulu-Natal

Poor South Africans are significantly poorer and have lower employment rates than the subjects of most published research on gambling prevalence and problem gambling. Some existing work suggests relationships between gambling activity (including severity of risk for problem gambling), income, employment status and casino proximity. The objective of the study reported here is to establish the prevalence of gambling, including at risk and pathological gambling, and the profile of gambling activities in two samples of poor South African adults living in a rural and a peri-urban community. A total of 300 (150 male, 150 female) adults in KwaZulu-Natal, South Africa in communities selected using census data, completed the Problem Gambling Severity Index and a survey of socioeconomic and household information, and of gambling knowledge and activity. It was found that gambling was common, and—except for lottery participation—mostly informal or unlicensed. Significant differences between rural and peri-urban populations were found. Peri-urban subjects were slightly less poor, and gambled more and on a different and wider range of activities. Problem and at risk gamblers were disproportionately represented among the more urbanised. Casino proximity appeared largely irrelevant to gambling activity.     

Already at the Table: Patterns of Play and Gambling Involvement Prior to Gambling Expansion

During 2011, the Governor of Massachusetts signed a bill to allow casino gambling in the state (Commonwealth of Massachusetts 2011). As a result, two resort casinos will begin operations during 2018 and 2019; a smaller slots parlor began operations during June 2015. Prior to this expansion, gambling was widely available in Massachusetts, through the state lottery, off-track betting, and gambling opportunities available in neighboring states. Within this context, it is important to understand the patterns of gambling involvement in the population prior to gambling expansion. The current study examined gambling involvement, patterns of play, and gambling-related problems prior to gambling expansion among a sample of 511 Massachusetts residents who were members of a statewide Internet panel. To measure patterns of play, we asked questions about past-year games played and frequency of play. To measure breadth of involvement, we assessed the number of different games played. To measure depth of involvement, we measured time spent gambling, amount wagered, and amount won or lost. Principal component analysis revealed four play pattern components accounting for more than 50% of the variance in game play frequency. Multiple regression analyses revealed that component scores composed of casino gambling and skill-based gambling (e.g., poker, sports) variables uniquely contributed to the prediction of gambling-related problems, even when depth of involvement was controlled. However, the addition of breadth of involvement to the model resulted in a model where no set of variables contributed significantly, suggesting a complex relationship among play patterns, depth, and breadth of involvement. The study established discrete and distinguishable gambling play patterns associated with gambling-related problems and identified groups of individuals potentially vulnerable to the effects of gambling expansion.     

Gambling motivations and superstitious beliefs: a cross-cultural study with casino customers

The expansion of legalized commercial gaming in Macau has motivated stakeholders to explore opportunities in other Asian countries. However, there is a lack of research focusing on casino customers in these markets. Thus, the purpose of this study is to explore gambling superstitious beliefs and motivations of those visiting a casino in South Korea, and how these factors are different across four ethnic groups. The researchers surveyed 323 casino customers in the lounge area on the casino floor, including Americans, Chinese, Japanese, and Koreans living abroad. This study found American gamblers could be characterized as more superstitious than Japanese gamblers, while the Chinese and American gamblers exhibited many similarities regarding the pattern of superstitious beliefs that they were most likely to endorse. The findings also suggest the culture and the area around the casino might be more important to Chinese, while novelty to Japanese and winning money to Korean gamblers are seen as most important. This study contributes to gambling literature by examining gamblers’ beliefs and motives in a different setting with more diverse populations than those in previous studies. The findings of this study will help casino operators properly develop and adjust strategies to thrive in the Asian marketplace.     

Problem and Pathological Gambling in a Sample of Casino Patrons

Relatively few studies have examined gambling problems among individuals in a casino setting. The current study sought to examine the prevalence of gambling problems among a sample of casino patrons and examine alcohol and tobacco use, health status, and quality of life by gambling problem status. To these ends, 176 casino patrons were recruited by going to a Southern California casino and requesting that they complete an anonymous survey. Results indicated the following lifetime rates for at-risk, problem, and pathological gambling: 29.2, 10.7, and 29.8%. Differences were found with regards to gambling behavior, and results indicated higher rates of smoking among individuals with gambling problems, but not higher rates of alcohol use. Self-rated quality of life was lower among pathological gamblers relative to non-problem gamblers, but did not differ from at-risk or problem gamblers. Although subject to some limitations, our data support the notion of higher frequency of gambling problems among casino patrons and may suggest the need for increased interventions for gambling problems on-site at casinos.     

Belief in Luck or in Skill: Which Locks People into Gambling?

According to the social axioms framework, people's beliefs about how the world functions (i.e., internal or external locus of control) are related to their social behaviors. Previous researchers have attempted to relate locus of control to gambling behavior, but the results have not been clear-cut. The present study speculated that the effects of perceived control (i.e., belief in luck and belief in skill) on gambling behavior are domain-specific and vary with the type of gambling. A total of 306 adult Macau residents ranging in age from 18 to 65 with casino gambling experience were recruited by going door to door. Empirical data on gambling frequency and perceived control relating to 13 types of gambling were collected. Our results demonstrated that the effects of belief in luck or skill on gambling behavior varied across different gambling categories. Specifically, for football lottery, Chinese lottery, and baccarat, it was not belief in skill but rather belief in luck that was a positive significant predictor of gambling frequency. Only for slot machines and stud poker did belief in skill significantly predict gambling frequency. For the remaining eight gambling categories, neither belief in luck nor belief in skill could predict gambling frequency. Our findings indicate that neither internal nor external locus of control can consistently explain people's gambling behaviors. Instead, which factor plays a greater role in a person's gambling behavior is dependent on the gambling type. Therefore, the finding that not all gambles are created equal might be a promising avenue for further research and treatment approaches.     

Conformity to masculine norms among treatment-seeking male problem gamblers

Men are more likely than women to engage in so-called ‘strategic’ forms of gambling, particularly wagering and casino table games, but the reasons for this preference are unclear. Previous research on male gender roles found that behaviours that are effective at establishing masculinity are those perceived as being risky, skill-based and public – which are also characteristic of these ‘strategic’ forms of gambling. The aim of the current study was to examine the possibility that men may be drawn to wagering and casino table games because these strategic forms of gambling are associated with masculinity. Seventy male treatment-seeking problem gamblers completed a survey on their perceptions of various forms of gambling, and a measure of conformity to masculine norms. Participants reported that being seen as skilled and intelligent, and acting in public were important motivators for both wagering and playing casino table games. Furthermore, individuals who engaged in wagering and casino table games displayed higher levels of conformity to masculine norms than those who preferred gambling on gaming machines. The findings have important implications for the regulation of gambling promotion, the encouragement of help-seeking, and the treatment of gambling disorders in men.     

The Determinants of Lottery Sales in Portugal

In sum, this paper examines the core determinants of lottery sales in Portugal. With panel data analysis covering 18 Portuguese districts and 5 years, this study explains the variations in a district’s per-capita lottery sales in terms of key theoretical hypotheses such as per capita district income, age, education index, gender and religion. This paper concludes that the richer Portuguese districts spend more than the poorer districts and there is an inverted-U relationship between lottery sales and per capita income. The paper also concludes that married Catholic citizens spend more on lottery products than others and that the level of education returns a negative effect on lottery spending.     

Near Miss,Gambler’s Fallacy and Entrapment: Their Influence on Lottery Gamblers in Thailand

Near miss, gambler’s fallacy and entrapment are hypothesized to influence gambling behavior but their individual impact on gambling behavior and their relationships have not been investigated. This study examines the direct and mediated effects of near miss, gambler’s fallacy and entrapment on lottery gambling among Thai lottery gamblers. Two groups of 200 lottery gamblers participated in the study. One group used superstitious methods to search for lottery numbers to bet, whereas the other group simply bought their tickets from lottery stalls. The superstitious group shows higher levels of near miss, gambler’s fallacy, entrapment and lottery gambling. Three models of relationships among near miss, gambler’s fallacy, entrapment and lottery gambling were constructed using LISREL program. The model that shows a direct effect of near miss, and one that shows a mediated effect of near miss fit the data equally. The results confirm a gambler’s fallacy and entrapment as starting points in the theory of cognitive psychology of lottery gambling and the generalization of near miss in gambling motivation.     

A Test of the Social Cognitive Model of Lottery Gambling in Thailand

This paper reviews lottery gambling research using Bandura's (1986) social cognitive model framework. It also describes a partial test of the model among lottery gamblers in Thailand. The study hypothesised that lottery gambling is related to income levels and that respondents high in cognitive bias, money consciousness and hope, and those whose family members also played lottery would bet more frequently and more money on lotteries and chase particular numbers. Nine hundred and fifty lottery gamblers participated in the study. Log linear modelling was used to analyse the data. The resulting models found cognitive bias, frequency and amount spent on lottery purchases in a three-way relationship. Levels of income, money consciousness, hope and family members' lottery play were related to the frequency and independently to amounts spent on lottery purchases. Cognitive bias, money consciousness, hope and family members' lottery play were related to chasing of particular lottery numbers. The results of the study confirm the validity of applying social cognitive models to lottery gambling and suggest that lottery gamblers be informed of their small chance of winning on lotteries.     

Lottery participation by youth with gambling problems: are lottery tickets a gateway to other gambling venues?

The aim of the present study was to investigate the types of gambling activities youths with gambling problems participate in and whether the lottery is a key gambling venue for these young people. Secondly, we sought to ascertain whether youths with gambling problems display similar gambling behaviour with lottery tickets as those addicted to traditional forms of gambling. Participants were 1,072 young people, 10-18 years of age, in Ontario, Canada. Youths with gambling problems reported having a preference for lottery tickets compared to other forms of gambling. Differences were found for the frequency with which probable pathological gamblers reported going to the store specifically to purchase lottery tickets. Furthermore, probable pathological gamblers reported chasing their losses after having played the lottery more than the other gambling groups. This research demonstrates that youths with gambling problems gamble primarily with lottery products and exhibit similar pathological gambling behaviour (e.g., chasing) as those individuals addicted to other forms of gambling venues. Furthermore, the results suggest that lottery tickets are a potentially addictive activity that introduces youth to the exciting properties of gambling.