Economic Effect of Gambling in the US

Gambling is one of the American people’s favorite hobbies, and the topic has amazed me since I read the book Bringing Down the House in 5th grade. On a recent college visit to California, I was surprised to learn that one course available for completing the math requirement was called “The Probability of Gambling”, and was a study of the probability behind various card games, including Texas Hold ‘em and blackjack. Gambling is also a popular venue in the media, as can be seen in popular movies such as 21 and Casino Royal. When I was younger, the concept of earning money while playing a game that I enjoyed fascinated me, but as I grew older, I realized the naivety of those beliefs. Casinos wouldn’t offer gambling if patrons were consistently putting the casinos in debt. Now, I am more interested in the effect gambling has had on society, specifically on its economic impacts. I believe that gambling has been beneficial for the US economy in the past and will continue to benefit the economy for years to come, but the stress gambling puts on society has greatly increased problems in communities with high profile gambling industries.

Gambling in the Americas began when the first colonists came from England, and the Virginia Company needed a way to get some profit. They turned to a lottery, which was quite successful, except it was associated with settler’s laziness as well as the economic troubles faced by the colony. The Crown eventually shut down the lottery due to its impact on a royal lottery operated throughout the British Empire. Lotteries were used again by American colonists in an attempt to raise funds for the Revolutionary War without raising taxes. This was extremely successful, and the practice was continued into the 19th century in order to transportation improvements, especially as the Western frontier continued to gain attention and popularity. When gold was discovered in California, gambling became one of the most popular forms of entertainment for miners in the West. However, the economy slid into a recession after the gold rush, leading many people to associate gambling with economic depression. Lotteries were also becoming increasingly corrupt, with organizers fixing the results for a portion of the pot. These circumstances led to nationwide ban on gambling, with the exception being Nevada, where professional gamblers would flock to from across the country to create the foundation for modern day Las Vegas.

The ban on gambling didn’t last long, as the Great Depression forced government leaders to revoke the ban in an attempt to stimulate the faltering economy. Gambling once again grew in popularity, although it only increased the divide between the rich and the poor due to the uneven payoff associated with casino gambling. State lotteries became popular during the Cold War, especially when Reagan became president, because he cut national funding for key aspects of the country such as education and Medicare in order to fund the war against the USSR. Tribal gambling also began to grow in popularity during this time, due to state’s inability to regulate prize money on reservations. Instead of going to state run lotteries or gambling locations, locals and tourists alike would flock to the reservations in the hopes of winning it all, although this rarely ever occurred. These various aspects of gambling have steadily become more popular, with casinos and lotteries providing support for various state economies.

Gambling provides two main benefits to states: casinos bring in tourists while also paying tax to the state for gambling revenues. An influx of tourists means money flows into the state economy without any significant loss of money due to the low odds of winning at casinos. The state gets even more money from gambling because casinos are forced to pay a tax on all revenue earned, with tax revenue almost reaching $1 billion dollars in Nevada. The gambling industry has also created more than 500,000 jobs, lowering unemployment throughout the nation. However, gambling isn’t perfect, and there are other statistics that paint a much more worrisome picture about the industry.

Crime seems to be strongly correlated to gambling, with cities introducing casinos seeing an increase of over 50% in crime rates. This forces states to spend more on the police force, diverting funding away from other projects in an attempt to combat a problem caused by gambling. Organized crime is also a very common issue due to the large amount of cash flowing in and out of casinos each day. Problem gambling also becomes a much larger issue when casinos are present, which in turn leads to a higher crime rate when people need to pay off gambling debt. There are some detrimental aspects of gambling in society, but for the most part, the gambling industry has helped keep the American economy from slumping.

After reviewing the various statistics from my research, I believe that gambling has been beneficial for America. Whenever the country has faced economic hardship, gambling has been promoted or legalized to bolster a weak economy. Not only does it have a positive influence on the economy, but I believe that gambling also benefits the American people. Card games such as poker and blackjack are universal and can help bring people together in social environments. In a few short months, I will be able to legally experience the large attraction gambling has to a large number of Americans. Although there are some harmful side effects of gambling, these are outweighed by the benefit that the industry has displayed throughout history.

You Need Help To Quit Gambling For Good

Are you worried about the gambling habit of someone in your household? Undoubtedly it is the spouses, family members and loved ones that suffer as a consequence of a gambling addiction. Knowing which course of action to take can prove to be a difficult one. Quit Gambling for Good is a solution that can help the gambler within your family to come to terms with their problem and stop gambling. To the compulsive gambler knowing there is a problem and admitting there is a problem are two different matters. To the rest of the family,they just know there is a problem, a problem that needs to be addressed.

The Quit Gambling for Good guide identifies, discusses and addresses the financial, psychological, physical and emotional impacts of those surrounding problem gamblers (list below).

Types Of Gambling
Types Of Gamblers
Real Life Gambling
On line Gambling
Why On line Gambling Is Not Good
How Gambling Influences On Family/Families
Why Should You Stop Gambling
Benefits And Advantages Of Stopping Gambling
Quit Gambling! Don’t Ruin Your Life!
How To Stop On line Gambling
Ways To Stop Being Addicted To Gambling!

These adverse effects can also lead to marital disharmony or even divorce and family break ups, maybe you are a victim of these circumstances.

The impact of the on line Poker phenomenon in particular is a major contributing factor causing high levels of out of control gambling. On line poker is rapidly becoming one of the most popular gambling games at on line casinos and gaming websites on the Internet. The main reason for this popularity is the belief that it is a game of skill in which enormous cash prizes can be won. This belief is a fallacy. Skillful play will never help gamblers to win money at on line poker because winning money at on line poker is impossible.

The top poker players in the world do not play poker at gambling websites. Some top poker players may say they do only because of getting paid for endorsements. These top poker players know they can beat the other players, but that they cannot beat the house. There is not anybody on the face of this earth who can make money playing on line poker. Even the world’s best poker player will never be good enough to overcome the “rake” which is the house cut from each pot.

To digress generally, many articles have stated that gambling of which there are many forms, casinos, horse racetracks, sports betting, stock market trading, Internet gambling websites, card games, bingo parlors, gambling machines, lotteries and more is one of the fastest growing worldwide problems.

The gambling industry is out there constantly trying to exploit the weak and vulnerable with influential factors such as government and politician endorsement ,media such as TV, radio, newspapers, books,magazines,sports leagues,movies and TV shows, advertising and the Internet.

US Gambling in the Midst of UIGEA

Online gambling in United States is endangered with the passing of the UIGEA or Unlawful Internet Gambling Enforcement Act. It was enforced in 2007 and since then it has dramatically curtailed the online gambler population. Many gambling websites have already stopped operating and many online gamblers have controlled their urge to gamble for the fear of being caught.

Such scare continued to linger despite the efforts to assure people. A few online gambling sites offer gambling system in roulette in which the prizes double with succeeding loss. This martingale system aims to attract more players. Many people aren’t aware of this prohibition and so aren’t familiar with its specifics. This led to false notions, and because of that, information campaign regarding UIGEA has become necessary.

Gambling Sanction

The major implication of UIGEA is to prevent operation of online gambling sites, thereby, preventing players to gamble. This is a US law and is being enacted in two ways. First, it compels legal operations of gambling sites through qualification assessment and issuance of gambling license as administered by Financial Crimes Enforcement Network, which will oversee the legalities of operations. Second, other games shall be reclassified and redefined for delineation; hence, games like chess, roulette, and poker shall be removed from the UIGEA scope.

UIGEA does have a good result-security in gambling for US players. Since it tracks down different online gambling sites, it is almost impossible for them to run away, supposing they commit crimes. The main issue is that the UIGEA stirred the industry drastically. A more pressing situation is its ineffective enforcement. The irregularity in enforcement made UIGEA a culprit of setbacks in the online gambling world, no less.

General Picture

UIGEA is so inefficiently enforced that it has become a culprit of profound problems encountered in online gambling today. The issue has a lot to do with the shareholders who invested funds in gambling sites. Because of the impending prohibition of gambling, many shareholders withdrew their shares from online gambling sites because of fear of bankruptcy. This slump causes many gambling websites to shut down operations. As more sites closed, people began to believe that it was going to be the end of online gambling in the United States. Many of these online venues lay the blame on UIGEA for their closure and non-operation. What was supposed to safeguard the gambling market lead to its near demise.

This ineffective enforcement of UIGEA also caused another repercussion. As it is not implemented in some states, there is confusion across the country as to the scope of this law, whether it aims to ban gambling and ban citizens to gamble online or not. Nevertheless, UIGEA does not necessarily prohibit American players to join online gambling websites. But some states did not understand the bill correctly. So many of the US gamers have now succumbed to the idea that they could no longer enjoy gambling online. Despite the number of states allowing gambling, the anxiety in the whole country is very real. As you can see the truth, the nation’s opinion regarding gambling is not in unison. And up to the time that UIGEA continues to be in partial implementation, this nationwide confusion goes on.

When The Fun In Gambling Is No Longer Fun

Gambling is all fun and games until you hit the point where you cease seeing the fun in it, or you become irredeemably addicted.

Admittedly, most people do not see it coming. They start gambling for very noble reasons including,

1. The need to take time away from work and family pressures
2. Escape route from depressing thoughts on other issues.
3. Hopes of winning a fortune and living lavishly ever after
4. To bring a tinge of excitement into their otherwise dull lives
5. A chance to go out there, socialize and make new friends.

As you can see from the above points, no one anticipates that gambling will grow into the Frankenstein that now threatens to push them off the sanity cliff. A lot of people are able to keep their gambling under rein. They do it for fun, to pass some time and to socialize. Others lose it completely. They become slaves to online and offline gambling. It throws their lives off-balance. They start putting more time and money into gambling, and they gradually neglect other aspects of their lives.

At this point, problem gamblers look back at their lives and get surprised at how and when it happened. For a lot of people, the problem starts with a shift in mentality. A big loss or a big win, and you are hooked. You start gambling more money than you had planned to spend on gambling, you invest a lot of time in the casinos and before you know it, you are a slave to gambling. You can’t eat, sleep nor breathe without thinking gambling.

To help you understand how gambling addiction works, I have analyzed some of the most common factors that pull people deeper and deeper into addiction.

1. Illusion that You Can be in command of Chance
No one can control chance. It doesn’t favor anyone, smart or otherwise. Unfortunately many problem gamblers think that they can manage to overturn their luck on the tables through sheer power of the mind. They have this skewed illusion that they can win if only they can learn the tricks of the game. They spent hours on end in the casinos trying to perfect their game. They fail to acknowledge the fact that gambling is 100% chance and not something to be learned. There are no tricks and knowledge that will all of a suddenly overturn the tables to your favor.

2. The Lure of the Jackpot
Winning a few hands on the tables can make you feel unconquerable. Everyone loves winning, and science has proved that people remember their victories more than they remember their losses. Fortunately, or probably unfortunately in this case, new gamblers have what is commonly referred as ‘beginner’s luck’. They begin their gambling hobbies on the right foot. They become obsessed with the idea of winning the jackpot.

3. Faith of Changing Luck
In life, we are encouraged to get up after every fall. We will make it in the end. We will accomplish our goals if we do not quit. After all, who wants to quit while the gold vein could be just a few inches away. There is only one place where this advice does not apply. If your quests are governed by pure luck, there is very little chance that you will ever make it. The statistics are open for anyone who wants to take a look. Gambling only ends up in massive losses, debts and frayed social relationships. There is no better time to quit than now. Lady Luck will not smile at you anytime soon.

How To Know If You Are Addicted To Gambling
Although there are clear pointers that indicate you are going down the addiction lane, it can be extremely difficult to identify them if you do not know what they are. This is probably the saddest thing about addiction. We never know we are addicted until we take a step back and look at ourselves in hindsight, at which time the damage has already been done.

In this section, we will discuss the 5 major red flags to watch out for.

1. You Just Can’t Stop
Remember the wise Gambler who Kenny Rogers sings about? Every wise gambler knows when to hold and when to fold. Compulsive gamblers on the other hand do not have limits. They will gamble everything they have thinking that they are having bouts of fun, when in actuality they are driven by compulsions beyond their control.

2. Gambling with Money Not Meant for Fun
Problem gamblers will gamble with money that they can’t stand to lose. They do not have a set gambling budget and will often risk money meant for important things such medical bills and other utility bills.

3. Gambling to Win or to Recover Losses
If you find yourself gambling more for the sole purpose of hitting the jackpot than for fun, you need to reevaluate yourself. Same case applies if the main driving force behind gambling is to recover losses that you had suffered earlier.

4. Obsessively Thinking about Gambling
If you eat, drink and sleep thinking about gambling, you might already be too deep in the trench.

5. Borrowing to Finance Gambling
Have you ever borrowed money to finance gambling? Chances are if you have, things are not looking so good.

What other key pointers do you think indicate a problem with gambling? I believe that you know them better. You know what triggers that red flag and siren at the back of your mind. A lot of gamblers realize the symptoms that point to problematic gambling in their lives, yet stopping becomes a quagmire.