Gambling ban would reverse recession, new book says

Apr 16, 2009

Legalized gambling is weighing down a global economy already mired in its deepest downturn since the Great Depression, according to a new collection of research that renews decades-old calls to outlaw betting.

The United States International Report series says casinos siphon money away from economies struggling to rebound, and saddle taxpayers with hefty, ongoing costs to battle crime and other social problems that gambling spawns.

Those economic arguments failed to halt two decades of gambling expansion, but could finally click as lawmakers try to reverse a lingering , said University of Illinois professor John W. Kindt, a national gambling critic and contributing author and editor of the nearly 3,000-page series.

"Because of the economy, people are starting to realize they need to get back to sound economic principles," he said. "If you want to get out of the recession, you have to go back to basics, and economists agree that you can't gamble your way to prosperity. In fact, it's just the opposite."

A sweeping ban would put money lost to gambling back into the traditional consumer economy, where an economic "multiplier effect" triples its impact by creating new jobs supplying goods and services, according to the latest volume in the series, "Gambling With Crime, Destabilized Economies and Financial Systems."

The three-volume series of academic and government reports recommends that the U.S. and other countries follow the lead of Russia, which has seen an economic boost since it virtually abolished legalized gambling in 2006-07.

"The longer we wait, the longer it will take to see the impact," said Kindt, a professor of business and public policy who has studied gambling for more than 20 years. "If people don't want to do that, fine. Enjoy your recession."

The just-released volume on gambling's links to crime and the economy caps the research series, published by William S. Hein & Co., of Buffalo, N.Y. Other books include a volume of executive summaries and recommendations, and a volume devoted to research showing that gambling harms national security and military readiness.

Compiled by the Research Editors Doctoral Directorate, a loosely knit group of doctoral researchers initially based on the Illinois campus, the series is the first academic collection examining gambling and its costs to society.

Other research findings included in the book conclude:

  • Gambling fails valid cost-benefit analyses, similar to proposals that seek to legalize marijuana and addictive drugs.
  • History shows government and gambling cannot coexist, and that gambling interests will ultimately corrupt government.
  • Government-sponsored gambling is second only to Big Oil and oil dependence as the most threatening catalyst for worldwide economic and financial destabilization.
  • Crime jumps 10 percent in areas with casinos, personal bankruptcies soar 18 to 42 percent and the number of new, addicted gamblers doubles.
  • Legalized gambling creates and finances new organized crime in the U.S. and countries around the world.
  • Australia has the world's highest concentrations of gambling, and the highest per-person social costs of any industrialized nation.
  • Despite job-creation claims by the gambling industry, 90 percent of gambling revenue goes into slot machines, which create no new employment.

Kindt says the findings show that the U.S. and other countries should finally heed calls that have sounded for more than a decade to outlaw gambling, which would prime the global economic pump by diverting wasted spending.

"We never should have brought all of this gambling into the economy," he said. "During the , President Roosevelt got rid of the prohibition on alcohol, but he didn't put casinos on every corner, because you can't gamble your way to economic health."

Source: University of Illinois at Urbana-Champaign (news : web)

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dirk_bruere
5 / 5 (1) Apr 16, 2009
While revenue might "go into slot machines" it does, actually, come out again and gets spent in other ways by other people. Gambling merely shifts money from gamblers to owners, who then spend it themselves - just like a "normal" service or entertainment industry.
TheRogue
5 / 5 (2) Apr 16, 2009
Oh, great. One more thing to "ban". We saw in recent memory the results of banning alcohol, the results of banning drugs and now these idiots want to ban something else because they don't like it? I can already see the multi billions being spent on the gambling police, gamblers being jailed in their thousands, an entire new prison system. The drive to control what others do is the most damning thing in Mankind.
gishpupp
not rated yet Apr 16, 2009
After fixing society's love of alcohol and gambling, we need to establish a 'carpal tunnel' tax.
Paradox
5 / 5 (1) Apr 17, 2009
There seems to be a lot of vague statements and generalizations in this article such as:
"Australia has the world's highest concentrations of gambling, and the highest per-person social costs of any industrialized nation."
might there be other factors that could contribute to this such as health care etc.?

Where does this come from? "History shows government and gambling cannot coexist."
As far as I know there has been gambling in every society that has ever existed.

I am not really for the gambling, but this article states these things as fact, when indeed, they are not.

"Government-sponsored gambling is second only to Big Oil and oil dependence as the most threatening catalyst for worldwide economic and financial destabilization."
Are they talking about the lottery here? Lets see, I pay one dollar for a ticket, and BAM worldwide economic COLLAPSE!!!
THIS ARTICLE IS RIDICULOUS.
frajo
1 / 5 (1) Apr 17, 2009
This article doesn't sound like a scientific article. It rather sounds like a preacher's tale.
DGBEACH
not rated yet Apr 17, 2009
This article doesn't sound like a scientific article. It rather sounds like a preacher's tale.




...unless they were talking about gambling in a more generalized way...taking chances on the stock market could be considered as gambling, or banks taking chances on high-risk customers, or presidents spending billions of dollars on a "chance" that it might fix things...isn't THAT a gamble as well??? ...in that light, they're right!:)



E_L_Earnhardt
not rated yet Apr 17, 2009
Right! I'm FOR it! Electing officials to vote their own salaries should be the first shutdown!
LuckyBrandon
not rated yet Apr 17, 2009
Gambling fails valid cost-benefit analyses, similar to proposals that seek to legalize marijuana and addictive drugs.

I call BS on the above statement....anyone who did a real cost-benefit analysis would prove without any doubt whatsoever that marijuana and/or addictive drugs on their own could revive the US economy in a heartbeat. Not that I condone the legalization of hard/addictive drugs, but marijuana....come on...

Now onto the topic the article is for....this is just yet again another bullshit study meant to remove what few of the "rights" we have. If I want to gamble my money away instead of giving it to the government, or buying food or clothes, or doing whatever (it is our money after all), it is NO BUSINESS of the government.
I've said it before, I'll say it again, and I'll say it until the day it happens: Overthrow this peice of crap government we have "voer" us and put power back where it belongs....that is, the people themselves.
We no longer need an institutionalized government, we only need a small monitoring body of people to ensure funds are being used for what WE say they need to be used for.
Not one of those SOBs on the hill deserves 1 penny of our tax dollars....
LuckyBrandon
not rated yet Apr 17, 2009
Legalized gambling creates and finances new organized crime in the U.S. and countries around the world.

And on this statement: No freakin shit you morons, you think...you take our rights, and the only ones we can turn to to feel like were still truly free are organized crime "families" and "clicks". They understand that just because some ASS on the hill says people can't do it, that it will NEVER stop people from doing what they want. If organized crime provides this for us, more power to them. That even applies to things like firearms....if you take my right to purchase a fully automatic assault rifle, but I still want one, where am I going to go for it...because you saying no most certainly doesn't phase me in the least bit. I am a free man, and will live as a free man no matter what any government or other "authority" figure says. If you are free, you have no authority over you in your own personal life (work doesnt count).
just_doug
not rated yet Apr 19, 2009
All those same arguments could be used against groceries, cars, homes, and especially contributions to political parties.

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