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Social Effects of Gambling on Floating Vessels SOCIAL EFFECTS OF GAMBLING ON FLOATING VESSELS. PETER G. PAN Researcher Report No.9, 1994 Legislative Reference Bureau State Capitol Honolulu, Hawaii 96813 FOREWORD This study was undertaken in response to House ~esolution No. 3~2, adppted puring . the Regular Session of 1994. The Resolution requests the Bureau to study the social effects of shipboard gaming. This study examines, in general, the impact of legalized gambling on crime and problem gambling. Data regarding the impact of casino gambling on floating vessels, where available, are evaluated. Studies conducted by other states are reviewed. In addition, programs operated or funded by other states for problem gamblers are canvassed. We extend our sincere appreciation to all who contributed and without whose cooperation this study would not have been possible. Samuel B. K. Chang Director December 1994 ii TABLE OF CONTENTS Page FOREWORD ..... ....... ......... ........ .......... ................ .......... ............ ............ ........... ii 1. INTRODUCTION .............................................................................................. 1 House Resolution No., 392 ..... .... ... .... .......... ... .... ... ............. .•............ ...... ... 1 Riverboat Casino Gambling ........... .......... ................................................. 1 Cruise Ship Gambling..... .......................................................................... 2 Use of Terms and Focus of Study.............. ....... ................................... ..... 2 Organization of Study....... ..... ..... ... ... ......... .... .... ....... ......... .... ..... ... ........... 3 Endnotes................................................................................................. 3 2. NORMAL AND ABNORMAL GAMBLING............................................................ 4 I. Background................................................................................................. 4 Universality and History of Gambling ....... :................................................. 4 Brief History ................................................................................ .... 5 Historical Proscriptions ........................... .................................. ................ 5 Social Stability................ ....... ................... .................. ..................... 5 Societal Efficiency..... ........... ... .......... ... ........................ ..... .............. 6 Primacy of Religion............. ..... ................... .............. ............ ........ ... 6 Maintenance of Social Strata................ ....... ..................................... 6 II. Gambling and Uncertainty ........................................................................... 7 Gambling As Risky Behavior and Vice Versa ............................................. 7 Risk and Uncertainty: Gambling Games........................................... 7 Risk and Uncertainty: Other Risky Behavior As Gambling .......... ....... 7 Speculation on a Grand Scale........ .......................... ........ ...... ........ ........... 8 Tulipomania ............... :............................................. ............ ........... 8 The Banque Royale Affair·· or the French South Seas Bubble ........... 8 State of Denial. ......................... ........ ......................... ...................... 9 III. Theories of Gambling .................................................................................. 10 Sociological Approach ........................................ ;..................................... 10 Structural and Functional Theories........ ...... ........ ...... ....................... 10 Anomie Theory...... ...... ...................... ...... ........... .................. ........... 10 Alienation Theory ................. '" .......... ..... ....... ...... ... ..... .......... .... ... .... 10 Action Analysis ................... ..... .......... ..... ............... ................. ..... .... 10 Maintenance of Frame of Reference ... ........... ..... ......... ..................... 11 Psychological Approach.. ...................... .................................................... 11 Classical Theory....... ... ........................ ....... .... ..... ... .... ....... .......... .... 11 Psychological Addictions.................................................................. 12 Gambling as Medical Pathology........................................................ 12 iii Defining Criteria for "Pathological Gambling" -- DSM-III..................... 12 Revised Criteria for "Pathological Gambling" -- DSM·III·R . ..... ..... ....... 13 Defining Criteria for "Pathological Gambling" -- 1994 Revision DSM-IV ......................................................................................... 13 Medical Model .- Theory and Treatment............................................ 14 Typical Career Phases of a Pathological Gambler.............................. 15 Pathological Gambling: Part of a Mosaic of Abnormal Behaviors.. ..... 16 Possible Multiple Factors Influencing Pathological Gambling.............. 16 Gambling -- One Among Multiple Addictions ...... :................................. 17 IV. Gambling: Normal to Abnormal on a Behavioral Continuum ........................ 18 Gambling as a Normal Socializing Force. ....................... ........................... 18 Gambling as Entertainment...... ........... ....... ..................... .............. ............ 18 Small Stakes Gambling for EntertainmenL ........................ ....... .......... ....... 19 Gambling for Economic Gain and Upward Mobility............. ............... ......... 19 Gamblers in the Normal Range .- A Profile. ............ ........... ....... ......... ........ .21 Excessive Behavior.................................................................................. 23 Unequal Effects .. Rich and Pear .............................................................. 24 Regressivity ...................................................................................... "'"'' 25 Protection from Potential of Harm ...... ..... .............................. .................... 25 Bad Odds and Addictive Games................................................................ 26 Endnotes ........ .......................... ...................................................... ......... 29 3. GAMBLING AND CRIME........................................................................ ......... 35 I. Introduction ................................................................................................ 35 II. Historical Background ........................................................................ ......... 36 Gambling in Early Nevada ........................................................................ 36 Gambling in Post-World War II Nevada...................................................... 36 Historical Links Between Gambling and Crime.. ............... ......... ................. 37 Structural Factors .................................................................................... 37 Organized Crime and Anti·Gambling Efforts............................................... 38 Legitimacy of Gambling in the Modern Era. .................... .......... ..... ....... ..... 39 Casinos and Opportunities for Criminal Activity................... ..... ...... ....... ..... 40 Cash Flow: Opportunities for Skimming, Tax Evasion, and Money Laundering........................................ ................................. 40 Criminal Control of Peripheral Support Services ...... .............. ............ 41 Public Corruption..... ......... ......... .... ...... ........... ......... ..... .......... ..... .... 41 Other Potential Criminal Activities..................................................... 41 Street Crime and Large Crowds........................................................ 42 Organized Crime...................................................................................... 43 III. Studies Conducted By Various States ............. ................ ................ ............. 44 Virginia Study .......................... ;............................................................... 44 Iv law Enforcement Interviews...................... .... .............. .......... ................... 45 Illinois ............... , ............................................................................ 45 Alton, Illinois (pop. 35,000) ............................................................... 45 Galena, Illinois (pop. 22,000) ...................................... : .................... 45 Joliet, Illinois (pop. 80,000) .............................................................. 46 Peoria, Illinois (pop. 110,000; metro. pop. 350,000) .......................... .. 46 Rock Island, Illinois (pop. 47,000; quad-city metro. pop. 350,000: Moline, East Moline, and Battendorf and Davenport, Iowa) .............. 46 Illinois State Police ......................................................................... 46 Iowa ................................................................................................ 47 Bettendorf, Iowa (pop. 25,000) .......................................................... 47 Burlington, Iowa (pop. 30,000) ......................................................... 47 Clinton, Iowa (pop. 30,000) .............................................................. 47 Davenport, Iowa (pop. 100,000) ......................................................
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