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The Explosive Growth of Gambling in the United States
From the Congressional Record for the 104th Congress ^ | Senate - July 31, 1995 | Senator Paul Simon

Posted on 07/22/2002 1:37:05 PM PDT by vannrox

The Explosive Growth of Gambling in the United

States

Senator Paul Simon

Senate - July 31, 1995

From the Congressional Record for the 104th

Congress.


Mr. President, in November of last year, when I

announced I would retire from the Senate after

1996, President Clinton suggested that with the

freedom from political restraint I now have, and

with slightly more credibility because political

opportunism would not be the immediate cry of

critics, I should, from time to time, make

observations about our Nation, where we are going,

and where we should go.

One of the marks of our civilization, virtually

unnoticed as we discuss the Nation's problems, is

our fastest-growing industry: gambling.

Local governments, Indian tribes, and States --

all desperate for revenue -- increasingly are

turning to what appears to be a quick and easy

solution: legalized gambling. And, temporarily, it

often works. Poverty-stricken Indian tribes

suddenly have revenue. Cities like East St. Louis,

IL, with every possible urban malady, find

themselves with enough revenue to at least take

care of minimal services.

There are four basic questions:

  1. how rapidly is this phenomenon growing?

  2. what are its advantages?

  3. what are its disadvantages?

  4. is there a role for the Federal Government

    to play, and should it play a role?

A Lengthy History

Gambling is not a new phenomenon. The Bible and

early historical records tell of its existence.

Gambling surfaced early in U.S. history, then

largely disappeared as a legal form of revenue for

State and local governments. It remained very much

alive, however, even though illegal, in the back

rooms of taverns and in not-so-hidden halls, often

with payoffs to public officials to `look the other

way' while it continued. I particularly remember

traveling overseas and back while in the U.S. Army.

The troop ship became one huge gambling operation

with dice or cards, activity slowed only by the

occasional walking tour of a conscientious officer

whose coming would be foretold by someone taking

the voluntary watch for his fellow enlisted men --

and they were then all men -- who gambled. After

the watchman's signal, suddenly that portion of the

ship's deck or hold could meet the highest

puritanical standards. Within seconds of the

disappearance of the dreaded officer, the games

would begin again. Participation had no appeal to

me, not primarily for moral reasons, but I have

always been too conservative with my money to enjoy

risking it that way. What I remember about those

shipboard activities was the enormity of the stakes

that could be built up -- enormous for enlisted men

on meager salaries in 1951-1953 -- and the ability

of some of my friends to continue their activity

with almost no sleep.

Gambling's appeal, particularly for the idle --

and a troop ship is loaded with them -- is clear.

Early in our Nation's history, almost all States

had some form of lottery, my State of Illinois

being no exception. When Abraham Lincoln served in

our State legislature from 1834 to 1842, lotteries

were authorized, and there apparently was no moral

question raised about having them. In 1839, for

example, the Illinois House of Representatives

voted unanimously to authorize a lottery to raise

funds `for the purpose of draining the ponds of the

American bottom' in the vicinity of what is now

East St. Louis, an area that to this day has a

severe drainage problem, and a city that today has

a significant gambling presence.

In Illinois and other States the loose money

quickly led to corruption, and the States banned

all forms of gambling. Illinois leaders felt so

strongly about it, they put the ban into the State

constitution. For many years, Louisiana had the

only lottery, and then in 1893--after a major

scandal there -- the Federal Government prohibited

all lottery sales. Even the results of tolerated

but illegal lotteries could not be sent through the

mail.

But the lottery crept back in, first in New

Hampshire in 1963, and then in 36 other States.

Last year States sold $34 billion in lottery

tickets. Forty-two States now have some form of

legalized gambling. Even States that technically

outlaw gambling frequently manage to have some form

of it. In one of the more peculiar decisions by

Illinois Supreme Court justices -- dependent for

reelection at that time on campaign contributions

-- they ruled that betting money on horses was not

gambling, because the ability of the horse and the

skill of the rider were involved. Gambling is when

everything is left to chance, they argued.

A Growing Enterprise

What we know as casino gambling was legal only

in Nevada, then in New Jersey and now in 23 states.

From a small enterprise in a few States, gambling

has matured. In 1974, $17 billion was legally

wagered in the Nation. By 1992, it reached $329

billion, and it is now over $500 billion.

Three-fourths of the Nation's citizens now live

within 300 miles of a casino. One article reports,

`Airlines are exploring the installation of

back-of-seat slot machines on some flights.' [`A

Full House,' by Rob Day, Hemisphere, October,

1994.] Other nations -- particularly poorer ones --

are expanding gambling operations. Within our

country, the magazine Gaming and Wagering Business

reports, `Old attitudes have been shattered.

Barriers are crumbling, and doors have been flung

open.' [Dec. 15, 1991-Jan. 15, 1992.]

At this point, let me digress to express my

gratitude to scholars who have studied legalized

gambling in the United States, with little

attention and little gratitude from the community

at large. Particularly helpful, as I prepared these

remarks, was a book manuscript I had the

opportunity to read by Robert Goodman, a professor

at Hampshire College in Massachusetts. In October,

the Free Press will publish his thoughtful and

well-crafted manuscript under the title, `The Luck

Business.' The subtitle is `The Devastating

Consequences and False Promises of America's

Gambling Explosion.' John Warren Kindt, a professor

at the University of Illinois at Urbana, wrote an

excellent article for the Drake Law Review last

year, `The Economic Impacts of Legalized Gambling

Activities,' and Henry Lesieur, who heads the

criminal justice division at Illinois State

University, edits a magazine in this field, Journal

of Gambling Studies. I am grateful to them and to

others who have pioneered research.

Source of Revenue

What are the advantages of legalized gambling?

It brings in new revenue, at least temporarily

and, in some cases, over a longer period of time.

One of the great weaknesses of American politics

today -- and one of the reasons for public cynicism

toward those of us in politics -- is our eagerness

to tell people only what they want to hear. Polling

is a huge business, and if a poll suggests some

stand is unpopular, too many find a convenient way

of changing course, even if the public good is

served by the unpopular action.

An area of high sensitivity is taxation. That

problem is compounded by the fact that at the

national level no other industrial nation -- with

the exception of Israel -- spends as much of its

taxation on defense and interest as does the United

States. These bring no direct benefit to people.

Citizens of Germany, France, Great Britain and

other nations pay much higher taxes, but they see

health care and other benefits that we do not have.

In addition, their parliamentary systems make it

easier to make tough decisions than our system

does.

So when someone comes along and says, `I have a

simple way to get more revenue for you, and you do

not have to raise anyone's taxes,' that has great

appeal to policymakers who must seek reelection.

Those same people say to the policy makers, `Not

only will I provide revenue for you without

taxation, I will be very generous to you when

campaign time comes.' And they are.

Wishful Cities

While the promises of what legalized gambling

will do for a community or State almost always are

greatly exaggerated, it is also true that many

communities who are desperate for revenue and feel

they have no alternative are helped. I have already

mentioned East St. Louis, IL. Bridgeport, CT, is

another example. Small communities like Metropolis,

IL, population 6,734, find that a riverboat casino

brings in significant additional municipal revenue.

And while other businesses in these communities

often do not benefit -- and some, like restaurants,

are hurt -- a poll by the Better Government

Association, a highly respected Illinois civic

group, shows that in some communities, the initial

reaction to the riverboat casinos is more positive

than negative: Rock Island/Moline, 83 percent

positive, though this has changed; Metropolis, 76

percent positive; East St. Louis, 47 percent

positive; and Peoria, 64 percent positive.

Some officials in Chicago, desperate for

revenue, wish to bring in a large casino operation

with a $2 billion price tag. They say it will bring

10,000 construction jobs. That alone is

significant. The initial press release said 37,000

construction jobs. And officials in Chicago, aware

there are long-term dangers to the city from such

an operation, also know that unless they solve

short-term problems -- and that takes revenue --

the long-term picture for the city is not good. The

State government has shown itself largely

insensitive to the needs of the city, dominated as

it is by suburban and rural leaders. Faced with a

choice of lectures from the State about long-term

problems and what appears to be easy, significant,

immediate revenue, it is not difficult to

understand Chicago's choice. On top of that, they

face editorial prodding. Under a heading, `Casino A

Great Bet For City,' the Chicago Sun-Times called a

casino `a cash cow' and noted: `The sooner state

law changes to allow land-based casino gambling,

the better. And the sooner Chicago finally gets in

on the action, the better.' [April 17, 1995.]

Almost unnoticed has been the report of the Chicago

Crime Commission in response to a request by the

Mayor: `Organized crime will infiltrate casino

operations and unions, and will be involved in

related loan-sharking, prostitution, drug

activities . . . and public corruption.' [Chicago

Crime Commission, 1990.]

States Eye Gambling

State governments are no more loaded with

courageous leaders than is the Federal Government.

They need revenue to solve their problems. In

Illinois, for example, state support for public

higher education has dropped from 70 percent of the

costs in 1980, to 37 percent today, almost a

50-percent cut. [Here, I digress to observe that

States have been partially bailed out by Federal

aid to students. We hear a great deal from States

about unfounded mandates. We hear much less from

States about sizable grants from the Federal

Government.] Faced with needs in education at all

levels, with growing health care costs that afflict

both Federal and State governments, and with

decaying cities and decaying infrastructure, the

States have two options: Tell people the truth and

ask for the taxes to pay for these needs, or

combine the growing practice of issuing bonds,

states don't call them deficits and find some

`easy' source of revenue, like legalized gambling.

The courageous path is too infrequently taken.

Revenue from lotteries, race horse gambling, and

riverboat casinos brings Illinois government

approximately $820 million a year. That is State

government revenue alone. I have made no attempt to

calculate what revenue is lost because of money not

being spent in other enterprises in the State. Most

of those who wager in Illinois are from Illinois.

When they spend on gambling, that is money that

would otherwise go to clothing stores, groceries,

and other businesses. That means less revenue to

the State from those businesses. Also not

calculated in the $820 million State revenue is the

loss caused by the increased problem of gambling

addiction.

Early promises to use Illinois lottery money for

education have been technically complied with, but

State support for education has declined

substantially as a percentage of income for local

schools since the lottery became a reality.

Wisconsin, not a big gambling State, has 17

native American casinos. A study completed in April

concluded: `Overall, the state gains $326 million

in net revenue from the presence of the casinos.'

They added this caution: `However, this figure is

reduced substantially -- to $166.25 million -- when

even the lowest estimated social costs of

compulsive gambling are included in the

calculations. With mid-range estimated social

costs, the overall impact becomes negligible, while

with higher social-cost estimates, the impact

becomes clearly negative.' [The Economic Impact of

Native American Gaming in Wisconsin, by William

Thompson, Ricardo Gazel and Dan Rickman, published

by the Wisconsin Policy Research Institute.]

Tribal Casinos

Indian reservations have misery as their

constant companion. Unemployment rates, alcoholism

rates, suicide rates, and poverty indexes all

combine to paint a grim picture that should be a

matter of shame for our Nation. Not only has the

Federal Government been weak in its response to

these needs, but State governments, sometimes

dominated by prejudice against native Americans,

often have been even worse. Listen to this

Department of Health and Human Services report,

given to a Senate committee this year: `In 15 of

the 24 states with the largest native American

populations, eligible Tribes received nothing in

1993 from the more than $3 billion in Federal funds

[Title XX and Title IV-E child welfare services and

protection programs] the States received. In the

other nine States, Indians received less than three

percent.' [George Grob, Deputy Inspector General,

HHS, April 5, 1995, Senate Committee on Indian

Affairs.]

It should not surprise anyone that tribal

leaders who want to produce for their people seize

what some view as a legal loophole that our courts

and laws have created to get revenue for their

citizens; 115 tribes now have some form of casino

gambling. The gross revenue for the 17 tribes in

Wisconsin is $655 million. And about one-fifth of

that revenue comes from people who live outside of

Wisconsin, higher than in most States, much lower

than Nevada or Atlantic City. Connecticut is the

prime example of a small tribe gaining big money. A

casino operated by the Manshantucket Pequot Tribe

in Ledyard, CT, brings in approximately $800

million in gross revenue annually. Native American

leaders who see long-term harm to their tribes from

the gambling enterprises are hard-pressed by those

who see immediate benefits, and not too much hope

for sizable revenue outside of gambling.

Social Costs

What are the disadvantages of legalized

gambling?

The distinguished Nobel Prize-winning economist,

Paul Samuelson, has warned us: `There is a

substantial economic case to be made against

gambling. It involves simply sterile transfers of

money or goods between individuals, creating no new

money or goods. Although it creates no output,

gambling does nevertheless absorb time and

resources. When pursued beyond the limits of

recreation . . . gambling subtracts from the

national income.' [Economics, McGraw-Hill, 1970.]

A high official in Nevada told me, `If we could

get rid of gambling in our State, it would be the

best thing that could happen to us. I cannot say

that publicly for political reasons. But major

corporations that might locate their principle

offices here or build plants here don't do it. They

know that gambling brings with it serious personnel

problems.'

Personnel problems are but one disadvantage, but

they are real. People can become addicted to

gambling, as they can to drugs or alcohol or

smoking.

My mother belongs to a church in Collinsville,

IL, that had a fine substitute teacher at its

Lutheran school. Unknown to the teacher's family,

she had been visiting a gambling boat. Money the

family thought had gone to pay the rent and family

bills had, instead, gone into wagers. One day, she

left a message for her family, drove her car to a

shopping center and killed herself.

In a relatively affluent Chicago suburb, a

41-year-old man committed suicide after using more

than $11,000 in credit card advances for gambling.

He shot himself after leaving a gambling boat.

Police found $13 in his pocket.

More typical is the experience of a friend, a

professional man, who attended a statewide meeting

of an association with which he is affiliated.

While he went to the meetings, his wife went to a

riverboat casino and `got hooked.' She spent all

the money she had and used all the available money

from her credit cards, close to $20,000. Her

husband knew nothing about it until he checked out

of the hotel and found his credit cards could not

be used because they had already reached their

maximum. In this family, the situation has worked

out, but that is not true for many.

A retired Air Force colonel has written me about

the problem of casino gambling near Keesler Air

Force Base that offers part-time work to personnel

stationed there, but also 24-hour-a-day gambling

availability and has brought serious problems of

addiction and the social and criminal problems that

go with it for the men and women stationed there.

Addiction Profile

Gambling addiction is a serious problem. We know

that men are more likely to become addicted than

women, that the appeal of gambling is greater for

low-income people than those of above average

income, that there are approximately 9 million

adults and 1.3 million teenagers with some form of

gambling behavior problem and that the availability

of gambling enterprises -- their closeness to where

a person lives -- causes a significant increase in

the addiction problem. Nationally, less than 1

percent 0.77 percent of the population are

compulsive gamblers, but when enterprises are

located near a population, that number increases

two to seven times.

The greatest growth is among teenagers.

University of Maryland football fans were stunned

recently to read that their all-American

quarterback had been suspended by the NCAA for four

games because of betting on college games. The

spread of gambling among teenagers has spilled over

onto college campuses, and Maryland's football

problem is evidencing itself on many campuses, a

highly publicized tip of a much more serious

iceberg.

Costs to society of the problem gambler vary

from the most conservative estimate of $13,200 to

$30,000 per year. I have no idea which figure may

be correct, but we know there are costs. Arnold

Wexler and his wife, Sheila Wexler, did a study for

Rutgers University and noted:

Compulsive gamblers will bet until nothing is

left: savings, family assets, personal belongings

-- anything of value that may be pawned, sold or

borrowed against. They will borrow from co-workers,

credit union, family and friends, but will rarely

admit it is for gambling. They may take personal

loans, write bad checks and ultimately reach and

pass the point of bankruptcy. . . . In desperation,

compulsive gamblers may panic and often will turn

to illegal activities to support their addiction.

(1992)

Prosecuting attorney Jeffrey Bloomberg of

Lawrence County, SD, testified before a U.S. House

committee on his experiences dealing with Deadwood,

SD, a small community that became the first place

outside of Atlantic City and Nevada to legalize

casino gambling. He said they were promised

`economic development, new jobs and lower taxes.'

Instead, casinos flourished, but other businesses

did not. Businesses that provide `the necessities

of life such as clothing are no longer available .

. . and customers of the town's only remaining

grocery store walk a gauntlet of slot- machines as

they exit with their purchases. For the most part,

the jobs which were created earn minimum wage or

slightly better and are without benefits. As for

the claim that gambling brings tax relief, this

simply has not proven true. Real property taxes for

both residential and commercial properties have

risen each and every year since gambling was

legalized. Crimes of theft, embezzlement, bad

checks and other forms of larceny have increased.

Our office has also seen an increase in the number

of child abuse and neglect cases as a result of

gambling. These run the spectrum from the children

left in their cars all night while their parents

gamble, to the children left at home alone while

their parents gamble, to the children left at home

alone while single mothers work the casino late

shift, to the household without utilities or

groceries because one or both parents have blown

their paycheck gambling. Government is hooked on

the money generated by gambling and in the long

term the ramifications of this governmental

addiction will be just as dire as for the

individual who becomes addicted to gambling.'

(Sept. 21, 1994--House Committee on Small

Business.)

One study conducted for insurance companies

suggests that 40 percent of white collar crime can

be traced to gambling. Usually those involved have

no prior criminal record.

The suicide rates for problem gamblers is

significantly higher than it is for the general

population. One out of five attempt suicide, a

higher rate than for alcoholism or drug addiction.

Harm to Families

Pathological gamblers are much more likely to be

violent with their spouses and abuse their

children. Children of these gamblers generally do

worse in school and have a suicide rate twice that

of their classmates.

A survey of compulsive gamblers found 22 percent

divorced because of gambling, 40 percent had lost

or quit a job due to gambling, 49 percent stole

from work to pay gambling debts, 23 percent

alcoholic, 26 percent compulsive overeaters, 63

percent had contemplated suicide and 79 percent

said they wanted to die. (Henry Lesieur and

Christopher Anderson.)

Treatment for gambling compulsion is rarely

covered by health insurance policies, though

physicians often will simply list depression as the

cause for needed therapy, and that may be covered.

A national conference will be held in Puerto Rico

in September to discuss the growing problem of

gambling addiction.

State lotteries disproportionately receive money

from -- and target -- the poor. While it is true

that the purchases are voluntary and provide some

entertainment, as a society we should be providing

more substantial exits from poverty than the rare

lottery victory. A bill before the Illinois

legislature sponsored by Representative Jack Kubik

to prohibit cashing welfare checks at race tracks,

off-track betting parlors, and riverboat casinos

died a quiet death.

Compounding all of this, State and local

governments who receive revenue from legalized

gambling often are its promoters, both to bring

gambling in and to sustain it. Governments get

hooked. While States receive revenue from alcohol

and tobacco sales, no governmental unit -- to my

knowledge -- promotes alcohol and tobacco.

Generally governments appeal to our strengths, not

our weaknesses. But gambling is different.

Billboards are erected in poor areas to promote the

Illinois Lottery. `This could be your ticket out,'

one proclaimed. If the State of Illinois had

billboards promoting whiskey, beer or cigarettes,

there would be a public outcry. The Pennsylvania

lottery unashamedly advertises: `Don't forget to

play every day.' And of course the poor are the

ones who succumb to that lure.

Generous Promises

Industries that want to bring in casinos are

generous with their promises. The poverty of

Atlantic City would be virtually eliminated, the

scenario read, but it did not happen. Poverty has

not diminished, and problems with gambling

addiction are up. Since the advent of the casinos,

40 percent of the restaurants not associated with

the gambling enterprises have closed, and one-third

of the city's retail business has closed.

Unemployment in Atlantic City is now the State's

highest. Crime is up significantly -- almost

tripled -- and the population has dropped by

one-fourth. Industrial consultant Nelson Rose told

U.S. News and World Report: `Atlantic City used to

be a slum by the sea. Now it's a slum by the sea

with casinos.' (March 14, 1994.)

But not only Atlantic City has been affected. A

study of crime patterns along non-toll roads

between Atlantic City and New York City and

Atlantic City and Philadelphia found a significant

increase in crime rates (Simon Hakim and Joseph

Friedman.)

The Better Government Association of Illinois

survey of 324 businesses in towns with riverboat

casinos found that 51 percent of the firms said

riverboats had either no effect or a negative

effect on their business. Of the 44 percent who

gave a positive response, half said the lift their

businesses got was minimal. Three percent said

their business has been `helped a lot.' (1994

survey.) A Chicago Tribune survey found a similar

result. An Aurora, IL riverboat casino gets all but

1 to 2 percent of its business from within the

State, and the Tribune reported:

`The casino is killing the small businesses in

this area, and they claimed it would help us,' said

Mario Marrero, former owner of the Porto Coeli Cafe

and Bakery, a block from the casino.

As soon as the casino opened a year ago, Marrero

saw his business drop by half, from about $4,000 a

month to $2,000 a month, he said.

In May, he was forced to close after nearly five

years in business. (June 28, 1994.)

Gambling's effect on government is more than

income from gamblers and expenditures for dealing

with problem gamblers and increased crime. Gambling

operators are major contributors to campaigns -- in

the millions -- and employ expensive lobbyists at

both the State and Federal level. A few gambling

enterprises have formed the American Gaming

Association and employed a former chairman of the

Republican National Committee as its chief

executive. Gaming is an influence to be reckoned

with in dozens of State capitals, and its influence

will grow markedly in Washington. In Illinois, the

lobbyists for gambling include a former Governor, a

former attorney general, two former U.S. attorneys,

a former director of the State police, a prominent

former judge, a former mayor of Chicago and at

least seven former State legislators. All of this

is legal.

But gambling in Illinois has also been

associated with the illegal. Back in 1964, as a

State legislator, I co-authored an article for

Harper's magazine titled, `The Illinois

Legislature: A Study in Corruption.' It did not

enhance my popularity in that body, but it did some

good, and I am pleased to report that today the

Illinois Legislature -- in ethics, and in quality

-- is a much improved body over that period. But

whenever there is easy money floating around, the

temptation for corruption is present. We have had

two Governors in our State's history go to prison,

one because of payoffs from legalized gambling. I

recall particularly the deal worked out in which --

on the same day -- the sales tax in our State was

increased from 2 cents to 3 cents, which then

included food and medicine, and the tax on two

politically well-connected racetracks was reduced

by one- third. Every State legislator knew what was

going on.

Organized Crime

Organized crime has frequently been a problem

with gambling, whether legal or illegal. Big money

attracts them. And it is big money.

Last year, one riverboat casino in Illinois

netted -- not grossed--$203 million. The Chicago

Tribune (March 28, 1995) reported that two

politically well-connected Illinois men were

offered $20 million if they landed a casino in our

State for a Nevada firm. When contacted by the

Tribune, they said they had other offers that were

higher.

The gambling elite are not only generous

employers of lobbyists, they are multimillion

dollar donors to political campaigns, and the

combination makes them politically potent. The

unsavory and unhealthy influence of lobbyists and

legislators as a protector of this rapidly growing

industry means sensible restraint will not be

easily achieved.

But there is another side to that story. Public

opinion is not with the gambling gentry. Even after

well-financed campaigns, when there are referenda

on whether legalized gambling should be expanded in

a State or community, rarely do those initiatives

win. Every referendum on a gambling casino held

last year lost, and in the big one, Florida, it

lost decisively. Donald Trump may have helped when

he told the Miami Herald a few weeks before the

referendum: `As someone who lives in Palm Beach,

I'd prefer not to see casinos in Florida. But as

someone in the gambling business, I'm going to be

the first one to open if Floridians vote for them.'

Florida Commerce Secretary Charles Dusseau did an

economic analysis of gambling possibilities in

Florida and came to the conclusion it would hurt

the State.

Opposition to legalized gambling also brings

together an unlikely coalition. For example, Ralph

Reed, executive of the Christian Coalition, and the

liberal State Senator Tom Hayden of California,

agree on this issue.

To those who wish to go back to an earlier era

in our nation's history when legalized gambling was

abolished, my political assessment is that is not

possible. But restraint is possible.

Simon-Lugar Bill

I have introduced legislation, cosponsored by

Senator Lugar, to have a commission, of limited

duration and a small budget, look at this problem.

Congressmen Frank Wolf and John LaFalce have

introduced somewhat similar legislation in the

House. My reason for suggesting the limited

time--18 months -- and the small budget, $250,000,

is that commissions like that often are the most

productive. One of the finest commissions the

Nation has had, the Commission on Foreign Languages

and International Studies, produced its report in a

little more than 1 year on a small budget and had

significant influence.

Let a commission look at where we are and where

we should go. My instinct is that sensible limits

can be established.

For example, what if any new gambling enterprise

established after a specific date had to pay a tax

of 5 percent on its gross revenue. Those who are

already in the field who are not too greedy should

support it because it prevents the saturation of

the market. Financial wizard Bernard Baruch said of

those who invest in the stock market, `The bears

win and the bulls win, but the hogs lose.' Gambling

enterprises that are willing to limit their

expansion are more likely to be long-term winners.

And those who know the problems that gambling

causes should support this idea because of the

limitations.

Or suppose we were to move to some form of

supplement to local and State revenue again.

States, Indian tribes, and local governments that

do not have any form of legalized gambling would be

eligible for per capita revenue-sharing assistance.

It would require creating a source of revenue for

such funding, but would bring some relief to

non-Federal governments who do not want gambling

but are desperate for additional revenue. There is

no way -- let me underscore this -- of reducing the

gambling problem without facing the local revenue

problem.

Congressman Jim McCrery, a Republican from

Louisiana, has proposed that lotteries -- now

exempt from Federal Trade Commission

truth-in-advertising standards -- should be

covered. Why should the New York lottery be able to

advertise: `We won't stop until everyone's a

millionaire.'

These are just three possible ideas. The

commission could explore others. The commission can

look at how we deal with gambling opportunities

that will surface later this year on an

experimental basis on cable television and the

Internet. How significant could this become? None

of us knows.

We do know that two-thirds of problem gamblers

come from a home where at least one parent had a

problem with alcoholism. Should we be dealing more

seriously with alcoholism, in part to deal with the

gambling phenomenon?

These and other questions could be studied by a

commission.

What should not be ignored by Congress and the

American people is that we have a problem on our

hands. We need to find sensible and sensitive

answers.


  • [The text of this speech was downloaded from

    Thomas: Legislative Information on the Internet,

    which is run by the Library of Congress. The Web

    address for Thomas is

    http://thomas.loc.gov/

    ; the address for the speech is

    http://thomas.loc.gov/cgi-bin/query/z?r104:S31JY5-20:

    .]



  • TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Culture/Society; Extended News; Government; News/Current Events; US: Nevada
    KEYWORDS: clinton; dnc; election; finance; gambling; gore; greed; growth; indian; money; poor; rich
    Until the Clintons came to office, you could only gamble in Nevada.
    1 posted on 07/22/2002 1:37:05 PM PDT by vannrox
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    To: vannrox
    That's not true. Indian casinos started in AZ in the 80s. And of course Atlantic City dates WAY back.

    Simon misunderstands why things are social ills. The question isn't whether there are problem gamblers and what toll they take on society, the question is WHY are there problem gambers and would they still be taking a toll on society if there were no gambling. You get a very different view when you shift the focus of blame from the inanimate object to the decision maker.
    2 posted on 07/22/2002 1:46:59 PM PDT by discostu
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    To: discostu
    Whoever, whatever, I think the gambling needs to start being cut back by law. Internet gambling is going to devour some people. parsy the puritan.
    3 posted on 07/22/2002 1:50:55 PM PDT by parsifal
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    OH, FROM YOUR HEADLINE, I THOUGHT YOU WERE TALKING ABOUT THE STOCK MARKET.

    :)

    4 posted on 07/22/2002 1:53:45 PM PDT by willgetsome
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    To: parsifal
    The vice will always find the weak-willed. Those that are smarter than their weakness learn to avoid it. I'm speaking from the inside looking out on this issue, I am what's known in mob movie parlance as "a degenerate gambler", I can't stop once I start and I'm no good at it. My solution is simple, I don't gamble, I don't go anywhere near those places and close down those internet popup adds quickly. I don't even go to the concerts one of the local casinos has (good concerts too, ones I'd like to go to) because I know what will happen. But I don't expect the rest of the world to stop gambling just because I have issues. They're my issues and I'll deal with them.
    5 posted on 07/22/2002 1:56:47 PM PDT by discostu
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    To: vannrox
    I had the pleasure of meeting then-former Senator Simon at dinner one evening. My wife and my brother and his friend were eating near Symphony Hall in Chicago after attending the Do-It-Yourself Messiah there. The Senator walked in with his wife (since deceased). I waited until they were done eating and about to leave, and then made bold to introduce myself and thank him for his service in the Senate as certainly one of the more distinguished men there. He was gracious enough to thank me and to introduce himself and his wife to the rest of my party. A true gentleman.
    6 posted on 07/22/2002 1:57:35 PM PDT by RonF
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    To: discostu
    I really do not care to speculate as to what "problem gamblers" would be doing if they weren't gambling. Such a question is unanswerable. What is plain is that gambling guts the social fabric wherever it is introduced. My state (Texas) will be facing this problem in a few years, and God help us if we let the wolf in the door.
    7 posted on 07/22/2002 2:10:27 PM PDT by Zack Nguyen
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    To: Zack Nguyen
    I'm looking at the side effects. For instance the article says that problem gamblers are more likely to be spousal abusers than the norm. Now if there were no such thing as gambling would the people with that predilection still be more likely to be spousal abusers? I say yes.

    As for gutting the social fabric, don't be so dramatic. Other than the commercials most people in Texas won't know anything changed. The problem gamblers are already finding a way, mostly illegal, the other gamblers are just taking vacations out of state. Life goes on.
    8 posted on 07/22/2002 2:15:52 PM PDT by discostu
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    To: vannrox
    Good Read. It appears that compulsive gambling aflicts about 1% of the population at large but 99% of all politicians. Greed and empty promises seems to be a major component and, I never believe the theories that pschylogists come up with.
    9 posted on 07/22/2002 5:18:03 PM PDT by SSN558
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