S11472 CONGRESSIONAL RECORD — SENATE August 4, 1995 health and to understand the science of The U.N. issue has been mentioned tising slogans of the New York lottery. Tom forest health and discuss the changes prominently in ‘‘Opportunity and Chal- pauses. ‘‘Those were good come-ons.’’ necessary to manage for long-term for- lenge,’’ and so have a number of other It’s no accident that the voices inside Tom’s head echoed lottery ads. They’re ex- est health. The hearing will be held at interesting issues such as Taiwan’s re- tremely effective. And they’re everywhere: the Northern Arizona University at lationship with the Chinese Com- on the radio and TV, in bus shelters and on Flagstaff in Ashurst Hall. munists, the independence movement billboards, even in mailings sent straight to The hearing is by invitation only. in Taiwan and the role of Taiwan in homes. The message is simple: Play the lot- Witnesses testifying at the hearing are the 21st century. tery and get rich. Get rich, and all your requested to bring 10 copies of their ‘‘Opportunity and Challenge’’ is a problems will be solved. The New York lot- written statement with them on the collection of well thought-out state- tery takes in more than $2 billion in sales day of the hearing. Please submit one ments on Taiwan’s foreign relations by each year, and it spends $30 million each year on advertising to keep the cash rolling copy in advance to the attention of one of Taiwan’s most eminent leaders: in. Mark Rey, Committee on Energy and Fredrick Chien. I highly recommend State lotteries target anyone who might Natural Resources, U.S. Senate, Wash- this book.∑ cough up a dollar (or $10 or $20) for the ington, DC 20510. Time permitting, an f chance to strike it rich. Conveniently silent open mike session will be held. If inter- on the odds, these ads send the message that MISLEADING LOTTERY ADS ested in giving a 2-minute statement, hard work and patience is for suckers. In the process, the ads help wring billions of dollars please contact Senator KYL’S office in ∑ Mr. SIMON. Mr. President, many States have been directly involved in from the most vulnerable ‘‘customers’’ pos- Phoenix, AZ, at (602) 840–1891. sible—the poor and the addicted. For further information, please con- the explosive growth of gambling Criticism of state lotteries runs a wide tact Mark Rey, at (202) 224–6170. across the Nation in the last two dec- gamut. Some say the state shouldn’t even f ades. allow gambling, much less conduct it. Others The staggering surge in State-spon- argue that gambling should be left in private AUTHORITY FOR COMMITTEES TO sored and State-licensed gaming has hands. Still others believe that the state MEET largely been the result of impulsive de- should run lotteries for roughly the same reason many states run liquor stores: to COMMITTEE ON THE JUDICIARY cisions by cash-strapped State and keep the business controlled and clean, and Mr. DOLE. Mr. President, I ask unan- local governments whose leaders are to make money for the state. imous consent that the Committee on looking for painless new sources of rev- Regardless of where you stand on these im- the Judiciary be authorized to hold a enue. portant questions, though, one thing should business meeting during the session of There has been scant attention, at be clear: The advertising that entices Ameri- the Senate on Friday, August 4, 1995. any level of government, to the larger cans to spend tens of billions of dollars on The PRESIDING OFFICER. Without and often troubling public policy impli- lottery tickets each year is deceitful and objection, it is so ordered. cations that accompany the gambling corrosive. It is the only form of advertising unburdened by state and federal truth-in-ad- ADDITIONAL STATEMENTS boom. I have introduced S. 704, a bill vertising standards. The fact that it comes that would charter a Gambling Impact f from the state—which ought to encourage Study Commission which, after an 18- people’s strengths, not prey on their weak- OPPORTUNITY AND CHALLENGE month inquiry, would release its find- nesses—makes it all the more foul. ∑ Mr. CRAIG. Mr. President, I wanted ings in a report that would provide Today, 37 states and the District of Colum- bia have instituted lotteries, and that num- to share with my colleagues a fine some guidance to the President, to the Congress, to State and local govern- ber is likely to grow.‘‘Quite simply, states book authored by Dr. Fredrick Chien, need the revenue,’’ explains David Gale, ex- Foreign Minister of the Republic of ments and to the American people as ecutive director of the North American Asso- China. these decisions are made in the future. ciation of State and Provincial Lotteries. ‘‘Opportunity and Challenge,’’ pub- Senator LUGAR has joined in this effort ‘‘Every dollar raised by the lottery is a dol- lished by the Arizona Historical Foun- as the chief Republican cosponsor of lar you don’t need to get from taxes.’’ Across dation, is a collection of Minister this legislation. the country, $34 billion in lottery tickets Fredrick Chien’s speeches and writings, In the current issue of the Wash- were sold in 1994. In Texas, the lottery con- ington Monthly, Joshua Wolf Shenk of- tributed $935 million to the state’s budget. In given between 1990 and 1994. These New York, the figure was $1.01 billion. As writings fully explain Taiwan’s foreign fers an illuminating analysis of the states have become dependent on lottery rev- policy; students of politics or anyone ways that State lotteries often entice enue, the pressure to keep people playing has interested in the study of Taiwan will individuals into gambling with sales become relentless. ‘‘Marketing is absolutely find them extremely helpful. pitches that, he notes, are ‘‘the only essential,’’ Gale says. ‘‘Lottery tickets are Of particular note is Taiwan’s advo- form of advertising unburdened by no different than any other product. Your cacy of ‘‘pragmatic diplomacy.’’ Even State and federal truth-in-advertising market will lose interest after a while. You standards.’’ I call his article, ‘‘Every- have to keep after them.’’ though the Republic of China does not Like any sophisticated business, lotteries have formal relations with many coun- one’s A Loser,’’ to the attention of my target the specific groups of people most sus- tries, its ‘‘pragmatic diplomacy’’ has colleagues, and I ask unanimous con- ceptible to suggestion. The Iowa lottery’s enabled Taiwan to have substantive re- sent that it be printed in the RECORD. media plan, for example, contains the fol- lations with nearly all the countries in The article follows: lowing statement of objective: ‘‘To target the world. Taiwan’s relationship with [From the Washington Monthly, July/Aug. our message demographically against those the United States is a classic example 1995] that we know to be heavy users.’’ One such target is the poor. The charge EVERYONE’SALOSER: HOW LOTTERY ADS of ‘‘pragmatic diplomacy’’ at work. De- that lotteries are regressive—that is, hitting ENTICE THE WRONG PEOPLE TO GAMBLE spite the lack of formal ties, Taiwan lower-income residents the hardest—makes and the United States enjoy an infor- (By Joshua Wolf Shenk) intuitive sense, since the pitch of wealthy mal working relationship which con- Tom had been playing the lottery for two fantasies clearly resonates most strongly tinually grows stronger. After a careful years when God started whispering in his among those who are least affluent. ‘‘There’s study of Chien’s writings, I conclude ear. At first, Tom (who asked that his last absolutely no question about it,’’ says name be withheld) would spend just a few that the Republic of China is on the Charles Clotfelter, a Duke University econo- dollars a week. He had his regular numbers, mist and a leading authority on lotteries. right track in terms of expanding its and he’d play them when he thought of it. According to a study by the Heartland Insti- international presence. But then, he says, on the days that he tute, a conservative think tank, the poor One of the challenges facing Minister hadn’t planned on playing, the word would spend more money than the non-poor on lot- Fredrick Chien and his government is come from Heaven: Your number is coming teries—not only as a percentage of their in- Taiwan’s bid to rejoin the United Na- tonight. Fear would strike him like ice come, but also in absolute terms. Blacks and tions. Clearly, Taiwan is qualified to be water on the neck: ‘‘I’d think, ‘I’m not going Hispanics also tend to play more often than a member of the U.N. It is to be hoped to win it. I don’t have the [money] on that whites. number.’’’ So he’d rush out to play his reg- I worked two summers at an Ohio conven- that the world will soon see the injus- ular number, and many more. Before long, he ience store that sold lottery tickets, and my tice of keeping Taiwan out of the U.N. was spending $300 a week on tickets. experience there confirms these findings. and will invite Taiwan to rejoin the ‘‘It was ‘A Dollar and a Dream’; ‘Hey, You The store drew customers from all socio- world body. Never Know,’’’ he says, repeating the adver- economic backgrounds, but lottery players

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