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Surprise, surprise: The lottery rifles the pockets of the poor
San Antonio Express-News ^ | 02/06/2005 | Ken Rodriguez

Posted on 02/06/2005 5:48:16 PM PST by SwinneySwitch

The myth-peddling Texas Lottery Commission does not want you to know the truth about the spending habits of the lottery's poorest and least educated players.

So I'll give you the truth that's shaded and buried in its latest demographic study:

Texans who earn the least spend more per player on the lottery than those in the highest income groups.

Texans with the least amount of education — high school dropouts — spend more than three times as much as those with college degrees.

African Americans and Hispanics spend, per player, almost twice as much as Anglos.

Thanks to data gathered by a Texas Tech research group, we have confirmation of long-held suspicions: The lottery hammers the poor, the uneducated and minorities.

One telling number: A person who earns less than $20,000 a year spend more on the lottery each month — $76.50 — than someone who earns $50,000 to $59,000 — $39.24 per month.

The numbers, of course, do not square with the Lottery Commission's long-running lie that its games do not hit the poor harder than the rich. So I asked commission spokesman Bobby Heith for a response to the new data.

"The results are what they are," he said. "The commission is not disputing any findings. They felt the report was conducted in a good, fair way."

That's a stunning admission, but one you won't find easily in the 24-page report that's posted deep inside the commission's Web site, www.txlottery.org, under the "news and events" heading.

What you will find is phrasing in the report's executive summary that suggests equity among all lottery players.

From page 2: "The rate of participation in Texas Lottery games is consistent across income categories, with no income group more likely than any other group to play lottery games."

Also from page 2: "The rate of participation is also consistent across groups defined by level of education, with no group more likely than any other group to play the lottery."

Sounds good, right? Well, there is a big difference between near "equal participation" in the lottery and "equal spending." Nowhere in the report's summary or conclusions will you find mention of the gross spending inequity between rich and poor. Yet, in general, those earning less than $50,000 are spending far more per player than those with incomes above $50,000.

"This was a clear example of a statistical study being re-shaped to the desires of those who paid for it," says Gerald Basuld, a San Antonio Community College statistics professor.

The conclusion you will find on the final page doesn't match the facts: "... there appear to be few differences across demographic categories ... in the average amount spent on lottery games per month."

Really? That's not what the table on page 7 shows:

High school dropouts spend an average of $173.17 per month on the lottery while those with college degrees spend $48.61.

Blacks and Hispanics spend $108.96 and $102.20, respectively, while whites spend $55.02.

Those who earn less than $20,000 spend $76.50 per month. But people in the $60,000-$75,000 income bracket spend $34.37 per month while the $76,000-$100,000 income group spends even less, $28.96. Only the wealthiest — those whose income is above $100,000 — spend close to the bottom-income group: $71.42.

The youngest players, ages 18 to 24, spend far more per month ($91.23) than the oldest. The 55-64 age group spends $56.34, and those 65 and older spend $60.45.

Surprised? You might be surprised to know that the Texas Tech research group submitted two reports. It submitted the first one in early January, then, at the commission's suggestion, made changes after some members felt the report might reflect poorly on the lottery.

One notable change appears on the final page. The report's first conclusion, which was not released to the public, noted that higher educated players spend less on the lottery. The second conclusion omits this fact. Only the second conclusion appears on the Web site.

Commission members had wondered why previous studies hadn't shown gross spending differences between income groups.

Well, previous studies did not ask lottery players how much they spent per month.

Now that the commission has the truth, is it morally obligated to inform Texans that the lottery hits the poor and uneducated harder than others?

Absolutely.

Will the commission do it?

Absolutely not.

-------------------------------------------------------------------------------- To contact Ken Rodriguez, call (210) 250-3369 or e-mail krodriguez@express-news.net.


TOPICS: Culture/Society; Extended News; Government; US: Texas
KEYWORDS: idiottax; lottery
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There's a reason why they call the lottery an idiot tax, Ken.
1 posted on 02/06/2005 5:48:16 PM PST by SwinneySwitch
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To: SwinneySwitch

You have to figure out some way to tax them.


2 posted on 02/06/2005 5:50:04 PM PST by U S Army EOD (John Kerry, the mother of all flip floppers.I)
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To: SwinneySwitch

Government-run lotteries seek to tax poverty out of existence.


3 posted on 02/06/2005 5:50:05 PM PST by Tax Government (Boycott and defeat the Legacy Media. Become a monthly contributor to FR.)
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To: SwinneySwitch

I have no sympathy

Most don't pay taxes or live on the dole

The lottery could be viewed as a way to recoup some of those losses


4 posted on 02/06/2005 5:50:25 PM PST by 5Madman2 (DemocRATS are Vermin)
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To: SwinneySwitch
Let them keep playing the lottery! I love watching lottery players willfully giving money over to the state. For a lot of them, it's about the only real tax they'll pay throughout the year.


5 posted on 02/06/2005 5:51:14 PM PST by rdb3 (The wife asked how I slept last night. I said, "How do I know? I was asleep!")
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To: SwinneySwitch

Are those stats for avg amount speant per month only applicable for the population of people who actually do participate in the lottery? I would hope they aren't average stats that take the entire population of citizens into consideration.


6 posted on 02/06/2005 5:51:14 PM PST by College Repub
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To: SwinneySwitch
Jeff Foxworthy tells redneck jokes about this FACT. This is not news.

Rich people spend (waste?) more on expensive wines and 'exquisite' restaurant meals, and buy the same coat for 3X what my 'poor' sister-in-law pays on the bargain rack.

People get to make their own choices. Get over it.
7 posted on 02/06/2005 5:51:33 PM PST by Blueflag (Res ipsa loquitor)
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To: SwinneySwitch

I guess Jeff Foxworthy was right. He said the lottery is a redneck's retirement plan.


8 posted on 02/06/2005 5:53:58 PM PST by Arkie2
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To: SwinneySwitch
Lotteries are get rich quick schemes for people that are bad at math.
9 posted on 02/06/2005 5:53:58 PM PST by bad company (Having a political debate with a liberal is like playing hangman with someone that can't spell.)
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To: SwinneySwitch
IIRC, Jefferson called the lotteries the fairest tax, for the burden was always borne by willing carriers (I might be misattributing the quotation). The article omits that there must have been packs of armed goons forcing the low-income participants to buy more tickets while letting better-off participants off.
10 posted on 02/06/2005 5:55:08 PM PST by GSlob
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To: SwinneySwitch

As Claude Raines said in "Casablanca", "Shocking".


11 posted on 02/06/2005 5:55:13 PM PST by buccaneer81 (Rick Nash will score 50 goals this season ( if there is a season)
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To: SwinneySwitch

Lotteries: a tax on hope.


12 posted on 02/06/2005 5:56:22 PM PST by Fzob (Why does this tag line keep showing up?)
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To: SwinneySwitch

If only my state income tax were VOLUNTARY. The lottery is not a tax, people. It is voluntary. You don't HAVE to play, you know. Besides, it is a bargain. For the price of one ticket, you can play the "what would I do if I win" game. I have never played the lottery, though.


13 posted on 02/06/2005 5:57:13 PM PST by sportutegrl
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To: SwinneySwitch
I only play when it gets to around $70Million. And for at least the next day I ignore TV, Radio, Newspaper, and Internet, and I walk around knowing I'm worth millions! :)

.... then someone ruins it for me.

14 posted on 02/06/2005 6:00:00 PM PST by theDentist (Jerry Springer: PBS for White Trash)
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To: bad company
Lotteries are get rich quick schemes for people that are bad at math.

Lotteries are a tax for folks who can't do math.

15 posted on 02/06/2005 6:00:10 PM PST by humblegunner (And who knows what else?)
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To: SwinneySwitch

...excellent post! Using sinful vice to cheat stupid people is not good conservatism.


16 posted on 02/06/2005 6:02:54 PM PST by familyop ("Let us try" sounds better, don't you think? "Essayons" is so...Latin.)
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To: SwinneySwitch
Texans who earn the least spend more per player on the lottery than those in the highest income groups.

So? This is some how a surprise?

How do you think the high income group got that way?

17 posted on 02/06/2005 6:02:55 PM PST by Harmless Teddy Bear (Naked Mole Rats are sweet, gentle and love to cuddle. Bring a colony home today for your Valentine)
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To: SwinneySwitch

There is nothing new about this. Maryland says they cant allow slot machines because poor people would play them . Hell the better off people are traveling 100 miles to Delaware to and West Virginia to give those states their money while I cant pay for my gas at the local store because I have to wait for the ones who cant afford to go to Delaware to passover their money on the Lotto.What a batch of BS.


18 posted on 02/06/2005 6:07:36 PM PST by sgtbono2002
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To: College Repub

Went to "news and events" section and couldn't find anything.

Maybe they've pulled the study?

http://www.txlottery.org/news/news.cfm


19 posted on 02/06/2005 6:11:07 PM PST by SwinneySwitch (Texas, bless God.)
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To: SwinneySwitch
The lottery rifles the pockets of the poor

Lotteries do no such thing. These people CHOOSE to participate. The fact they are of a lower income bracket say nothing more than the fact that these people have low incomes due to their life choices (for the most part).

"Progressive tax" -- now THAT is rifling pockets.

20 posted on 02/06/2005 6:16:22 PM PST by freedumb2003 (Don't bring a moped to a car fight)
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