Gambling in America : Final Report
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University of Calgary PRISM: University of Calgary's Digital Repository Alberta Gambling Research Institute Alberta Gambling Research Institute 1976-10-15 Gambling in America : final report United States. Commission on the Review of the National Policy Toward Gambling United States. Commission on the Review of the National Policy Toward Gambling http://hdl.handle.net/1880/41368 technical report Downloaded from PRISM: https://prism.ucalgary.ca N IOW POLICY TOWARD C&BLIMG. gambling in 9erica; final repart of the . + L Commission on the. Rrvlew GAMBLING IN AMERICA FINAL REPORT of the COMMISSION ON THE REVIEW OF THE NATIONAL POLICY TOWARD GAMBLING Washington: 1976 f 7 I 1 I I I I I For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 Stock No. 0524034l243-4 1 Catalog No. Y 3.014:1/976-2 i COMMISSION ON THE REVIEW OF THE NATIONAL POLICY TOWARD GAMBLING 2000 M STREET, N.W. WASHINGTON,DC 20036 15 October 1976 Honorable Gerald R. Ford President of the United States Washington, D.C. Honorable Nelson A. Rockefeller President of the Senate Washington, D.C. Honorable Carl Albert Speaker of the House of Representatives Washington, D. C. GENTLEMEN : In accordance with the provisions of sections 806-808 of Public Law No. 452, Ninety-first Congress, the Commission on the Review of the National policy Toward Gambling has the honor to submit its final report of findings and recommendations. Respectfully yours. Charles H. Morin Chairman iii COMMISSION MEMBERSHIP Charles H. Morin, Chairman Attorney, Washington, D.C. Ethel D. Allen, D.O. Senator John L. McClellan City Councilwoman-at-Large, Democrat, Arkansas Philadelphia Senator Howard W. Cannon Philip Cohen Democrat, Nevada Executive Director National Legal Data Center Senator Hugh Scott Republican, Pennsylvania James M. Coleman, Jr. Prosecutor, Monmouth County, N.J. Senator Robert Taft, Jr. Republican, Ohio Joseph A. Gimma Investment Banker, New York Representative James M. Hanley Democrat, New York Robert List Attorney General, State of Nevada Representative Charles E. Wiggins Republican, California Charles F. Phillips, Jr. Professor of Economics Representative Sam Steiger Washington and Lee University Republican, Arizona Representative Gladys Noon Spellman Democrat, Maryland James E. Ritchie Executive Director Marilu Marshall Deputy Director Former members: Representative Charles J. Carney (D-Ohio); former Senators Edward J. Gurney (R-Fla.) and Marlow W. Cook Lawrence J. Hogan (R-Md.); and Judge David D. Dowd, Jr., (R-Ky.); former Representatives John E. Hunt (R-N.J.) and former prosecuting attorney, Stark County, Ohio. COMMISSION STAFF Officials James E. Ritchie: Executive Director Thomas Farrell: Associate Counsel Marilu Marshall: Deputy Director David ~re1ich:~ssistantCounsel Stephen B. Bull: Director, Communications Rita Hallaren: Administrative Officer and Research Staff Student Assistants Bruce A. Butcher Dianne Blocker Carol D. Cragg Sharon L. Cohen Robert E. Creeden Thomas J. Daley Robinette L. Davis Margaret R. Dinneen Norma D. Dosky Karen S. Erickson Carol H. Duncan William R. Geyer Anne M. Fleming Ann D. Gray Stephen C. Fogleman Michael E. Joseph Kathleen J. Foley Harold A. Kurland Katherine M. Francone Roger H. Marks Nancy S. Hendee Howard J. Marx Kathleen M. Joyce David Moore Lael L. Kenyon James Muskett Roger L. Kreuzer Robert S. Pasley Patricia A. Owens Layn R. Phillips Leslie M. Pittler Lisa K. Powell Peter H. Reuter Michael H. Tonry Jacqueline A. Sheppard Deborah L. Tyler Joseph D. Van Cleve, Ill Peter W. Waldrneir Betty J. White Editorial Staff Nina Graybill: Editor DuPre Jones: Editor Patricia Helsing: Writer PRINCIPAL CONSULTANTS *G. Robert Blakey Carl M. Loeb, Jr. Director, Cornell Institute Former Vice President, Amax, Inc. on Organized Crime Greenwich, Connecticut Ithaca, N.Y Naurbon L. Perry * Richard C. Crane Retired Special Agent Attorney IRS Intelligence Los Angeles, California Los Angeles, California *Edward F. Harrington *Clyde B. Pritchard Attorney Attorney Boston, Massachusetts Southfield, Michigan JamesJay Hogan *Stephen H. Scott Attorney Attorney Miami, Florida Phoenix, Arizona Laurence T. Hoyle, Jr. *John Bern Simon Attorney Attorney Philadelphia, Pennsylvania Chicago, Illinois 'Former attorneys with the U.S. Department of Justice. vii CONSULTANTS Raymond Bell JackT. LaReese Former Clergyman Businessman Presbyterian Church Oklahoma City, Oklahoma Ordway P. Burden William T. Mcllwain William A. M. Burden & Co. Senior Vice President New York, New York First Bancshares of Florida, Inc. Boca Raton, Florida Joel David Chananie Assistant Professor Mark H. Moore University of Southern Assistant Professor California Harvard University Los Angeles, California Cambridge, Massachusetts John H. Ciccolo, Jr. Charles N. Nuber Assistant Professor Lecturer Boston College University of Arizona Boston, Massachusetts Tucson, Arizona H. Sheldon Detrick John Olszewski Realtor Retired Director of Intelligence, Tulsa, Oklahoma IRS Severna Park, Maryland Melvin Finerman Chairman of the Board Fred H. Ryan Mel Finerman Co., Inc. Retired President, Los Angeles Encino, California Turf Club Arcadia, California Floyd J. Fowler, Jr. Director Ralph C. Thomas Survey Research Program Professor of Law Boston, Massachusetts University of Tulsa Tulsa, Oklahoma 1. Bruce Johnson Manchester, Maine JamesMichael Kretz Research Associate Bureau of Social Science Research, lnc. Washington, D.C. viii FOREWORD With this Report, the Commission on the Review of the conditions." Not "difficult"-not "frustratingr'-not even National Policy Toward Gambling concludes its 3 years "almost impossible"-but impossible. And why not? of research and hearings into the controversial and divisive How can any law which prohibits what 80 percent of the subject of gambling. Our work is completed; the American people approve of be enforced? people must now judge its accuracy and usefulness. "What should we do about this?" the Congress has What the Commission has tried to do is to set out what is asked this Commission. With a small, able, and very known about each form of gambling and the possible dedicated professional staff under the direction of a truly consequences of its legalization. Based upon the facts outstanding talent, seven citizens and eight experienced contained in this Report, it is now the task of the Congress, legislators have concluded that a joint venture is necessary and the States as well, to take the next step in developing- between each of the 50 States and the national for the first time-a fair and reasonable national policy government, with some significant changes in the pattern toward the existence of gambling. of Federal laws. Each of the Commission's This Report and its recommendations will surprise most recommendations has been warmly debated and carefully Americans and may startle some. But those who are thought out, and it would not be considerate to discard surprised or startled should carefully reflect on the any of them lightly. significance of the fact that a pastime indulged in by At its first meeting back in January 1974, the Commission two-thirds of the American people, and approved of by made the decision to pursue its tasks with a small perhaps 80 percent of the population, contributes more permanent staff and to perform its research function than any other single enterprise to police corruption in their through contractual arrangements with established cities and towns and to the well-being of the Nation's research firms. The wisdom of this approach was proven criminals. If I were asked to describe simply the Gambling early and resulted in very substantial economies in the Commission's task, I could say it was to find out "why?" Commission's budget. But it is the staff itself which must Most Americans gamble because they like to, and they be given the lion's share of the credit for meeting every see nothing "wrong" with it. This being so, they see no deadline imposed upon it and for adhering strictly to the real distinction between going to the track to place a bet budgetary limitations of Congress. James E. Ritchie, the and backing their favorite horse with the local bookmaker. Executive Director, and his Deputy, Marilu Marshall, have And this truly free-wheeling logic-so consistent with the truly earned the gratitude of everyone concerned with the free enterprise philosophy of most Americans-permeates national phenomenon of gambling. This Report would the country's judicial system: police, prosecutors, and never have been possible within the allotted time were it courts. not for these two extremely talented, knowledgeable, and The Report of the Commission contains a hard aggressive prosecuting attorneys. It is my pleasure to take statement: "Contradictory gambling policies and lack of this opportunity personally to thank them for all they have resources combine to make effective gambling done, and I know I speak for every member of the law enforcement an impossible task under present Commission. Charles H. Morin Chairman PREFACE As Director of this Commission, and as a former Federal papers and surveys on every aspect of gambling. In prosecutor involved in enforcement efforts against addition, the Commission held 43 days of hearings across organized crime, I have had a unique opportunity to the country, taking testimony from more than 275 Federal examine the subject of gambling in its entirety. Until the and State law enforcement officials and policy-makers, Commission began conducting its investigations and persons involved in