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cUdddecdgcdgcdgcdgcdgcdgcdgcdcd c cddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddS c cddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddd@ c cddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddHc c cddHwc c c Report c July 1996 Volume 9, Number 6 THE SOCIAL COSTS OF GAMBLING IN WISCONSIN REPORT FROM THE PRESIDENT: WISCONSIN POLICY This is the second study we have done on RESEARCH INSTITUTE, INC. gambling in Wisconsin. The first dealt with Native P.O. Box 487 American casinos. This research deals with the Thiensville, WI 53092 social costs of gambling in Wisconsin. We commissioned the same academics who authored our first study. William Thompson is a professor of public administration at the University THE SOCIAL COSTS of Nevada-Las Vegas (UNLV). He is considered by many to be the leading expert in the country on OF GAMBLING IN gambling issues. Ricardo Gazel is the associate director of the Center for Business and Economic WISCONSIN Research at UNLV, and Dan Rickman is a professor of economics at Georgia Southern University and an expert in statistical modeling. This study also used WILLIAM N. THOMPSON, PH.D., survey-research data compiled by the Gordon S. RICARDO GAZEL, PH.D., and Black Corporation of Rochester, N.Y. DAN RICKMAN, PH.D. The results will hopefully lead to a public Page discussion on the impact of gambling on families throughout Wisconsin. We estimate that there are EXECUTIVE SUMMARY 1 approximately 32,400 gamblers with serious problems in our state. They impose a social cost of PREFACE 2 approximately $370 million per year, and these numbers are a conservative estimate of the I. THE IMPORTANCE OF THE 2 magnitude of the problem that faces the state of STUDY RESULTS Wisconsin. II. WHAT IS COMPULSIVE GAMBLING?3 III. HOW MANY?EFFORTS TO 5 Our authors believe it is time to begin to deal DETERMINE PREVALENCE RATES with the effects of having government lotteries, IV. HOW MANY IN WISCONSIN?5 Indian casinos, and private greyhound tracks that V. THE COSTS OF PROBLEM 11 clearly impact on the lives of our citizens. They do GAMBLING IN WISCONSIN: not believe that gambling should necessarily be THE DATA stopped, but rather that we admit that we have a VI. COST ANALYSIS 16 problem and begin to deal with it. VII. SOLUTIONS AND 22 RECOMMENDATIONS Those who will preach the evils of gambling VIII. CLOSING COMMENT 26 and demand that we end all these activities should answer this question. Whatever the social costs of BIBLIOGRAPHY 27 gambling are, they are a small percentage compared APPENDICES 29 to the social impact of alcohol. If gambling were to be ended, would we then move to prohibiting alcohol? The answer of course is “No,” but the BOARD OF DIRECTORS problem of gambling should
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