Posted by: Richie Bernardo

Gambling exists in every state, even Hawaii and Utah, where gambling is prohibited by law. But all gamblers are different. “Recreational” or “social” gamblers, for instance, buy the occasional scratcher, take the rare casino trip or bet small stakes in fantasy sports. But they also possess the mental capacity to quit at any point and prevent catastrophic financial loss. “Professional” gamblers make up another group — the likes of math genius Edward Thorp and high-stakes sports bettor Bill Krackomberger — who gamble well enough to make a living out of it but are able to separate work from personal life.

But when the business or pleasure gets out of control, gambling becomes a real medical condition. Gambling disorder, as the affliction is known, affects slightly more than 2 percent of all U.S. adults. According to the Mayo Clinic, “Gambling can stimulate the brain's reward system much like drugs such as alcohol can, leading to addiction.”

That addiction can lead to serious economic consequences. On a societal level, compulsive gambling costs an estimated $6 billion per year, according to a study by the National Council on Problem Gambling. Individually, a male gambling addict accumulates an average debt of between $55,000 and $90,000 whereas a female averages $15,000. Most cannot afford to pay back what they owe. As a result, gambling addicts develop a high tendency to amass even more debt, suffer from other health issues, lose their jobs, strain their relationships or even commit crimes.

The gambling problem, however, is much bigger in some states than in others. WalletHub’s analysts therefore compared the 50 states to determine where excessive gambling is most prevalent. Our data set of 15 key metrics ranges from presence of illegal gambling operations to lottery sales per capita to share of adults with gambling disorders. Read on for our findings, insight from a panel of researchers and a full description of our methodology.

1. Main Findings
2. Ask the Experts
3. Methodology

Main Findings

Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/20846/geochart.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2q1vw5O;  

Overall Rank (1 = Most Addicted)	State	Total Score	‘Gambling-Friendliness’ Rank	‘Gambling Problem & Treatment’ Rank
49	Nebraska	18.60	48	26
50	Utah	18.18	49	19

 

Ask the Experts

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• Timothy Fong Associate Clinical Professor of Psychiatry and Biobehavioral Sciences in the David Geffen School of Medicine, Director of the Addiction Medicine Clinic, and Co-Director of the Gambling Studies Program at University of California, Los Angeles
• Scott Boylan Professor of Accounting in the Williams School of Commerce, Economics and Politics at Washington and Lee University
• Lia Nower Professor and Director of the Center for Gambling Studies, and Co-Director of the Addiction Counselor Training Certificate Program at Rutgers University, School of Social Work
• Marc N. Potenza Director of the Center of Excellence in Gambling Research, and Professor of Psychiatry, Child Study and Neurobiology at Yale University School of Medicine
• Joseph M. Kelly Professor of Business Law at SUNY College at Buffalo, and Co-Editor of the Gaming Law Review and Economics
• Richard McGowan Associate Professor of the Practice in the Finance Department at Boston College, Carroll School of Management
• Stephen F. Ross Professor of Law, Lewis H. Vovakis Distinguished Faculty Scholar, and Director of the Institute for Sports Law, Policy and Research at Penn State Law
• David Gulley Professor of Economics at Bentley University
• Douglas M. Walker Professor of Economics in the School of Business at College of Charleston
• Timothy Davis Executive Associate Dean for Academic Affairs and John W. & Ruth H. Turnage Professor of Law at Wake Forest University School of Law

Timothy Fong Associate Clinical Professor of Psychiatry and Biobehavioral Sciences in the David Geffen School of Medicine, Director of the Addiction Medicine Clinic, and Co-Director of the Gambling Studies Program at University of California, Los Angeles Should sports betting be legal in all states? What are the pros and cons? Although still illegal, sports betting is available in every state through bookies and access to unregulated, online casinos. The benefits of legalizing sports betting is that a regulated, taxable industry could be created that may reduce illegal activities while providing a legal arena for adults who desire to bet on sports. As with other forms of legalized gambling, tax revenue and, potentially jobs would be a valuable benefit. The downsides of legalizing sports betting include potentially raising levels of gambling disorder (addiction) and diverting entertainment dollars away from other industries such as movies, tourism or dining. The impact of legalized sports betting on the integrity of sports, specifically corruption of the game, is not fully understood but is an important area of study and monitoring. Should daily fantasy sports be regulated as gambling? Daily fantasy sports is an innovative form of gambling that should be regulated in order to ensure a level playing field, honest competition and fair conditions for all players. It should be taxed, just like any other form of gambling and revenue should go back to reinvest in protecting vulnerable individuals from developing addictive disorders related to daily fantasy sports. As it currently stands, there remain too many questions about how the games are run, monitored and operate that create ripe conditions for the games to be tampered with. Regulation will further legitimize the industry of daily fantasy sports as an innovative business and one that should follow the current standards of practice and operations those other forms of gambling do. On balance, are state lotteries a good idea? Is there a way to make them less regressive? Lotteries have been operating in America since the origins of this country. The demand for lotteries and newer, innovative lottery products from the general public remains strong. Perceptions of the lottery tend to be favorable as evidenced by a lack of negative campaigns against the presence or expansion of lotteries – i.e., there are no “stop big lottery” initiatives. Economists and researchers have opined that lotteries are a regressive tax and that they disproportionately affect the poor, in part because of how they are marketed and where their distribution points are. In general, most states continue to see more benefits of lotteries such as payments to schools, infrastructure and keeping revenue flowing to state operations. Expansion of lotteries into multi-state lotteries such as the Powerball and Mega Millions have further deepened the lottery into this country’s culture and mindset to the point that it may be much more difficult to eliminate or slow down their growth. Short of tighter restrictions on the number of tickets purchased or linking in the amount of money one can spend based on discretionary income, making lotteries less regressive will be difficult. Further resources should be spent on documenting the precise impact, positive or negative, that lotteries have on all segments of the population from the very wealthy to the most impoverished. What are the signs someone is addicted to gambling? What should friends and family do to help? Gambling addiction, now formerly known as gambling disorder, is a psychiatric condition characterized by continued gambling despite harmful consequences. It is an addictive disorder, similar to drug and alcohol condition and research has shown that it is a brain disease, not a behavioral problem caused by greed or lack of willpower. In each case, the signs of gambling addiction can be different but, in general, common signs are inability to stop gambling, intense and prolonged preoccupation with gambling, chasing losses and continuing to gamble despite physical or psychological problems caused by gambling. Whenever friends and family suspect or know about a gambling disorder, they are encouraged to seek professional help in order to know about local treatment resources. They can also share their concerns with the gambler by describing how the gambling behavior impacts them and by supporting them in seeking professional help. Many states, like California, have state-funded treatment programs that can be accessed by calling helplines, like 1-800-GAMBLER that offer help for both the gambler as well as for friends and family members of the gambler. Scott Boylan Professor of Accounting in the Williams School of Commerce, Economics and Politics at Washington and Lee University Should sports betting be legal in all states? What are the pros and cons? Personally, I'm not in favor of expansion beyond Nevada. Part of the appeal of watching sports, to me, is the competition and the confidence that everyone is trying their best to win. If legalized wagering expands, it will become more difficult to manage and control. As a result, spectators like me might lose confidence that what we are watching is based on pure competition. As a Cleveland Browns fan, I've grown accustomed to them losing. But the possibility that they might win is what draws me in. If I ever start to believe that the outcome is predetermined -- due to gambling activity, or something else -- I will turn off my TV, cancel my DirecTV contract, stop attending games, and if I gambled, I would cease that as well. Should daily fantasy sports be regulated as gambling? Yes. Legal and semantic interpretations aside, it is gambling; just like placing a wager on a team, or going to a poker table in Las Vegas. Regulation often is viewed with skepticism, but it certainly has its benefits. Gaming in Nevada is heavily regulated. One of the byproducts is customer confidence. People are willing to go to Las Vegas and gamble because the rules are transparent, they are confident that they aren't being cheated, and that the casino has sufficient capital to pay its customers who win. Financial markets, which have many of the same elements, also are regulated. Public confidence is a good thing, and regulation, to the extent it builds confidence in fantasy sports, might actually fuel growth in that industry. On balance, are state lotteries a good idea? Is there a way to make them less regressive? Good or bad, the genie is never going back in the bottle. States are too dependent on the revenue produced by the lotteries to change them. It is difficult to watch some people play, who probably could better spend the money elsewhere. That said, everyone has the right to spend their money how they see fit. Perhaps education and outreach might be useful. $200 on Powerball still equates to almost no chance of winning. What are the signs someone is addicted to gambling? What should friends and family do to help? The problem with gambling addiction is that there aren't the same outwardly visible signs that one encounters with other types of addiction -- particularly substance abuse. It is much easier to identify someone who has a drinking problem, or who is addicted to narcotics. Mood swings, irritability, and large blocks of time unaccounted for are consistent with gambling addiction, but also are consistent with many other things. Unexplained credit card charges or ATM withdrawals, sudden changes in consumption patterns are indicative, but unless you have close access to financial records, these things might be difficult to notice. Lia Nower Professor and Director of the Center for Gambling Studies, and Co-Director of the Addiction Counselor Training Certificate Program at Rutgers University, School of Social Work Should sports betting be legal in all states? What are the pros and cons? On the "pro" side, sports betting is really no different from any other form of gambling, particularly horse racing. Why is one legal and not the other? As gambling continues to expand, it will be important to better explain these distinctions. On the "con" side, increased availability and accessibility will lead a certain percentage of people who just "bet" on sports among friends to bet on a larger scale and a percentage of those will develop an addiction. How much gambling is too much? When do we reach saturation with betting on everything and directing people's leisure spending to one industry? Others mention the mob and leg-breaking bookies but I don't really know whether legalization would affect that or not. Should daily fantasy sports be regulated as gambling? There is no question that daily fantasy sports is gambling. The operators have exploited a loophole in the law and built their money-making endeavor on a sports betting platform. They are positioned to make billions if/when sports betting becomes legal. So yes -- if gambling is regulated, then daily fantasy sports should be regulated. On balance, are state lotteries a good idea? Is there a way to make them less regressive? Once again, I don't take a position on the good/bad nature of gambling. Lottery is the most common form of play and the one most associated with having a disproportionate impact on minorities, older adults, individuals with disabilities and those with lower socioeconomic status. There are two ways to help make them less regressive -- limit the amount of tickets a person can buy and increase targeted education on the odds of winning to those groups that are the most vulnerable. What are the signs someone is addicted to gambling? What should friends and family do to help? They become preoccupied with gambling and more secretive. They may be on their phone or tablet a lot and a search would show they are on gambling websites. They have frequent withdrawals from ATMs at or near gambling venues. They borrow money from family or friends and make up multiple excuses why they can't cover their debts. They miss time from work, bounce checks, are often overdrawn. They are frequently absent from home for long periods of time and don't answer their phone. There are lots of signs and symptoms, depending on the type, frequency, and geographic location of their gambling preference. Marc N. Potenza Director of the Center of Excellence in Gambling Research, and Professor of Psychiatry, Child Study and Neurobiology at Yale University School of Medicine Should sports betting be legal in all states? What are the pros and cons? There are debates regarding which forms of gambling should be legalized, and different states have taken different positions. Some states (Hawaii, Utah) have not legalized any forms of gambling, and this situation may reflect the wishes of these governments and the people that they represent. However, with increases in the availability and usage of digital technologies and the growth of Internet gambling, there may exist challenges in regulating gambling behaviors. With the availability of gambling within jurisdictions, there is a need to generate, support and implement responsible gambling policies that help to prevent and treat problem gambling within those locations. As an understanding of potential changes in the factors associated with gambling problems may change over time, it is important to support research efforts to maintain a current understanding of gambling behaviors, particularly those that might become or are problematic. Should daily fantasy sports be regulated as gambling? Gambling has been defined as placing something of value (usually money) at risk in the hopes of gaining something of greater value. Often times, the perception of which behaviors constitute gambling may be influenced by certain factors; for example, the relative amounts of risk and skill involved. While a knowledge of the sport and its players may influence performance in daily fantasy sports activities, similar arguments could be made for gambling on horses or poker. As with such gambling, regulations should exist to prevent the development of problems and help those who experience problems. On balance, are state lotteries a good idea? Is there a way to make them less regressive? State lotteries may have both pros and cons. Some people enjoy lottery gambling and most people gamble responsibly. In the time prior to the institution of state lotteries in the 1960s, illegal lotteries existed. State regulation of lottery gambling may thus provide benefits with respect to ensuring the legality and fair operation of such gambling, as well as to generate state revenue. While most people gamble responsibly on the lottery, some develop lottery gambling problems. As such, it is important for states to provide appropriate support for prevention, treatment and research efforts relating to lottery gambling problems. What are the signs someone is addicted to gambling? What should friends and family do to help? People with gambling problems may find they need to gamble more over time in order to get the same level of enjoyment/satisfaction from gambling, they may become short-tempered in the immediate setting of not gambling, or they may go back to a place of gambling in order to win back money recently lost gambling. They may lie about or conceal the extent of their gambling and may need to borrow money to get out of a desperate financial situation related to gambling. They may gamble to escape from negative mood states. When gambling is interfering in major areas of life functioning (that is, familial relations, work, school or other areas), it is problematic. For people with gambling problems, there exist resources for help. There is a national helpline (1-800-522-4700) that is operational 24 hours a day. Additionally, states may also have helplines and specific treatment programs to help people with gambling problems, as well as to help people close to those with gambling problems (e.g., spouses, parents, children), particularly as gambling problems can have significant negative impacts on families. Joseph M. Kelly Professor of Business Law at SUNY College at Buffalo, and Co-Editor of the Gaming Law Review and Economics Should sports betting be legal in all states? What are the pros and cons? Illegal sports betting is about a $380 billion a year industry. If legalized at the state level where players can be sure that winners will be paid, states will see some tax revenue and regulatory measures will be required to minimize problem gambling. In Great Britain and other countries, sports wagering is legalized and any suspicious betting pattern will be reported to the betting regulatory agency. Presently, the only operators benefiting by sports betting being legal only in Nevada are "Mickey the Ant" and "Tony the Flea". Should daily fantasy sports be regulated as gambling? Daily Fantasy Sports (DFS) should also be regulated at the state level. State regulatory authorities will ensure that no employees of licensed operators will be allowed to play, that all DFS operators are honest and transparent, and that all players are of required minimum age. Each state will have to determine the extent of regulation as to whether it will be extensive or minimal. DFS, unlike traditional fantasy sports, is more like daily gambling and is a very serious concern to problem gambling experts. On balance, are state lotteries a good idea? Is there a way to make them less regressive? In 1960, there were no legal lotteries and "number" rackets were common in poor neighborhoods where criminals operated daily "number" games. In his earlier days, Malcolm X was a numbers runner. Lotteries have eliminated organized crime operating "numbers" games and they have provided much needed revenue for state education. As in any form of gambling, state measures should be taken to minimize problem gambling. The type of permitted advertising should not promote a lottery as a way of eliminating economic hardship. Advertising should also be strictly controlled in poor neighborhoods. Richard McGowan Associate Professor of the Practice in the Finance Department at Boston College, Carroll School of Management Should sports betting be legal in all states? What are the pros and cons? Pros:

1. It would allow the state to put most of the illegal sport gambling out of business.
2. It certainly would be revenue producer for the state.
3. It would legalize an activity that most Americans think should be legalized.

Cons:

1. The amount of gambling addiction would increase, especially for males between 18-35.
2. The legitimacy of any upset in a sporting contest (pro or college) would be questioned.
3. The NCAA would almost be forced to pay college athletes so many colleges would drop sports altogether.

The New Jersey case before the courts will decide how far states will go with sports gambling. But if New Jersey does legalize sports gambling, rest assured neighboring states will also legalize it and the race will be on! It will resemble the spread of lotteries. Should daily fantasy sports be regulated as gambling? While there is "skill" involved in fantasy sports, there is an element of chance. It is naive of the fantasy sports operators to think they were going to avoid being taxed and regulated as any other form of gaming/gambling entertainment. On balance, are state lotteries a good idea? Is there a way to make them less regressive? Lotteries were always consider the "harmless" form of gambling and in fact paved the way for the virtual explosion of gambling throughout the US. The most successful lottery per capita is MA and it pays a greater share to the players than any other lottery in the US. But the days of lottery growth are over, unless lotteries can successfully change the current mix of games. The current median age of lottery players is in the mid 50's. What are the signs someone is addicted to gambling? What should friends and family do to help? The most obvious sign of a gambling addiction is the player will do anything to obtain funds, including stealing from other family members or taking out loans they can never repay. There are Compulsive Gambling commissions in every state and Gambler Anonymous organizations available everywhere. Obviously the person has to acknowledge the problem. Stephen F. Ross Professor of Law, Lewis H. Vovakis Distinguished Faculty Scholar, and Director of the Institute for Sports Law, Policy and Research at Penn State Law Should sports betting be legal in all states? What are the pros and cons? Sports betting should be legal in all states. The vast illegal sports betting market is a genuine threat to sporting integrity. The best solution is to wipe out the illegal market by regulating and legalizing sports wagering. The benefits are increased revenues for taxpayers and sports leagues, and increased ways to spot potential threats to integrity. The principal downside – although I’m not sure it couldn’t be matched with effective programs – is the increase in problem gambling. Should daily fantasy sports be regulated as gambling? Daily fantasy must be regulated as gambling. The threats to integrity are rampant: indeed, it is well established that highly competitive athletes are more vulnerable to efforts to have their games affected in ways that are not outcome-determinative. Bribing a quarterback or a point guard to favor one teammate versus another is a major risk today. David Gulley Professor of Economics at Bentley University On balance, are state lotteries a good idea? Is there a way to make them less regressive? Lottery sales were $70 billion in 2014, so it is quite clear that lotteries are popular products with consumers. Moreover, lotteries provided around $35 billion in revenue to states in 2014, which is used to fund everything from education to environmental protection. This revenue stream is not highly correlated with other sources of state revenue, and so provides some diversification of funding. There are also relatively few people whose problem gambling is associated with lottery play. Finally, the lottery and other legal gaming products have brought previously underground economic activity to the surface in a way that can be regulated and monitored. Still, there are a number of issues surrounding state-sponsored lotteries. First, the revenue raised is still a relatively small fraction of total revenues. Second, it isn’t clear that lottery proceeds dedicated to a specific budget line item actually increase spending on that line item or simply cause governments to reduce funding from other state revenue sources. Third, state-sponsored lottery games can lead to a conflict of interest when other, competing forms of gambling attempt to enter the gaming market and must be approved by state regulatory officials. Finally, the tax on lottery playing is very regressive in that lower income players devote a larger fraction of their consumer dollars to buying lottery tickets than do those with higher incomes. To reduce the regressive nature of the lottery, states could emphasize lotto-type games that are relatively less regressive than daily numbers or scratchcard games. In addition, proceeds from lottery play should be targeted at lower income households. In one famous example from the UK, lottery proceeds were used to refurbish an opera house. Finally, education programs could be designed to make sure that lottery players are more fully informed of the odds and payoffs of the games they play. Douglas M. Walker Professor of Economics in the School of Business at College of Charleston Should sports betting be legal in all states? What are the pros and cons? This is a question that the voters in each state should answer. One of the major concerns about legalizing sports betting is the potential that it could lead to athletes throwing games or otherwise changing their performance. However, just because it is illegal does not mean that sports betting doesn't already take place. There is an argument to be made for bringing it above-the-table. If it were legal, it could be regulated and rules could be established and enforced. This is often a better approach than making something illegal and then pretending that this solves the problem; government isn't good at keeping up with technology. What is very interesting about this issue is that professional sports leagues have typically opposed legal sports betting, but they are now partnering with daily fantasy sports providers. Should daily fantasy sports be regulated as gambling? This is obviously a timely and important legal and policy question, which may ultimately be decided based on whether the activity is judged to have an element of skill or not. To me it does not seem very different from poker. There may be an element of both skill and luck. More generally, there are few areas in life where "luck" or randomness does not play some role, and I personally do not believe the government needs to play a role in each of those areas. As with any type of gambling, I believe most people are aware that they will likely lose money. To the extent there should be regulation, I think it should be aimed at minimizing harm to those individuals who develop a gambling disorder. On balance, are state lotteries a good idea? Is there a way to make them less regressive? They're certainly a politically effective way to raise government revenue. Typically, lottery revenues are earmarked for "good" purposes, such as subsidies for college students. However, this does not mean that net government spending on education necessarily increases after lotteries are introduced. One merit of lotteries is that they are "optional" taxes - it's very simple to avoid paying the tax: don't buy lottery tickets. A major objection to lotteries, however, is that they raise government revenue disproportionately from people with lower incomes. It is interesting to me how so many politicians view this type of gambling as acceptable, but they simultaneously object to casino gambling or online gambling. Lotteries are - by a huge margin - the worst type of gambling based on the expected value of the bet. From a consumer's perspective, it seems to me that people would be better off having more freedom of choice, since switching to any other type of gambling would mean smaller losses on each dollar bet. There's no simple way to make the lottery tax less regressive, but states could increase the payouts. But this would only lower the effective tax rate; it would not necessarily decrease the regressivity since it wouldn't necessarily change who buys the tickets. What are the signs someone is addicted to gambling? What should friends and family do to help? The American Psychiatric Association has a list of nine criteria that are indicative or disordered gambling. These include a person being preoccupied with gambling, lying after losing money to conceal the extent of involvement with gambling, and the need to gamble with increasing amounts of money in order to achieve the same feeling of excitement. Although diagnosis should be done by a professional, the criteria can be found by doing an online search for "DSM gambling disorder". If you know someone who you think may have a problem, most states have an 800- helpline; at the national level, there's the National Council on Problem Gambling. There are a number of other online resources available too. Alternatively, recommend that they seek professional help, or suggest they pick up a self-help book such as "Change your Gambling, Change your Life." Timothy Davis Executive Associate Dean for Academic Affairs and John W. & Ruth H. Turnage Professor of Law at Wake Forest University School of Law Should sports betting be legal in all states? What are the pros and cons? Legalizing sports betting will stymie the extent of illegal sports betting that currently exists. Legalization will also generate revenue for states and help to ensure fairer treatment for those who engage in sports betting. Regulation is unlikely, however, to effectively address the negatives often associated with sports betting and other forms of gambling. These include the social impact of sports betting, particularly problem gambling and the negative consequences that can flow therefrom such as the erosion of family relationships and monetary losses. Moreover, it's currently unclear what impact legalizing sports betting will have on preserving the integrity of sports contests. Should daily fantasy sports be regulated as gambling? From a legal perspective, this depends on the tests used by courts in each state to determine the legality of daily fantasy sport contests. Although test are sometimes formulated differently and may consist of various elements, invariably the question of legality turns on whether daily fantasy sports are viewed as contests of skill or of chance. If the former, daily fantasy sports contests are likely legal; if the latter, they are likely illegal. I view daily fantasy as gambling and as such should be regulated. As is true for sports betting generally, however, regulation is unlikely to effectively address the potential negative social implications for participants in daily fantasy sports. Methodology

 

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