Testimony of RI Council on Problem Gambling RICPG

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Testimony of RI Council on Problem Gambling
(RICPG)

• Presented to RI Special House Commission to Study
  Gambling
• By Thomas E. Broffman, PhD
• President, RI Council on Problem Gambling

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RICPG Position Statement

• RICPG is neutral on gambling. We neither support
  nor oppose the expansion of VLTS or any other
  form of gambling in RI.
• We along with the RI Lottery, Lincoln Park,
  Newport Grand Jai Alai, the RI Gambling Treatment
  Program and CODAC are concerned about the impact
  of expanded gambling on individuals who may have
  gambling problems.

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RICPG Mission Statement

• The mission of the RI Council on Problem Gambling
  is to provide
•          Advocacy and leadership to increase
  public awareness of problem gambling
•          Referral services for problem gamblers
•          Ensure the widespread availability of
  treatment for problem gamblers and their families
•          Education and prevention programs to
  reduce the social, financial and emotional costs
  of problem gambling
•          Encourage research on problem gambling
•          Work collaboratively with the RI gaming
  industry to develop Responsible Gambling Programs
  

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Lottery and Casino Gambling 1973Clotfelter
Cook, 1986 Commission on the Review of the
National Policy Toward Gambling, 1976.
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Lottery and Casino Gambling 1999
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Gambling Availability

• Legal Gambling in all states except Utah,
  Tennessee and Hawaii
• 37 States have Lotteries
• 28 States have Casinos
• 22 States have Off Track Betting

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US Leisure Expenditures(NGISC, 1999)
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US Legal Gambling Expenditures(NGISC, 1999)
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US Gambling Trends

• 86 Americans have gambled at least once in their
  life 68 Americans gambled in past year the
  majority of American gamble without significant
  negative consequences
• Yet 2.5 of gamblers account for 15 of all
  gambling
• 2001, 1.9 M Americans gambled 4.2B on Internet
• Several states gambling is 3rd leading source of
  state revenue
• 15 states have publicly funded PG treatment
• Only 16 states have completed PG prevalence
  studies

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RI Gambling Trends

• Lincoln Park 1702 VLTs pari-mutuels (51 tax)
• NGJA 500 VLTs pari-mutuels (57 tax)
• Additional 1800 VLTs pending Lottery approval
• 2001-2, 771 M wagered in RI VLTs (75 Lottery
  revenue)
• 3rd leading source of income
• 2001-2, 253 M to RI
• 150K for gambling treatment is .026 of total
  gambling revenue

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A Brief History of US Gambling (McGowan, 2001)

• 1st Wave State Sanctioned Lotteries (1607-1840)
• Private brokers licensed by the state
• Continental Army
• Colleges
• Capital Projects
• Private Charities
• 2nd Wave National Lotteries (1860-1890)
• Private brokers licensed by the Southern states
• 5M a year
• Primarily by mail

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(No Transcript)
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A Brief History of US Gambling

• 3rd Wave Golden Age of Pari-Mutuel Betting
  (1920-1964)
• 45 states legalized primarily horse racing
• Based on technological advances
• Off-set revenue by Prohibition
• 4th Wave State Operated Lotteries (1964-1993)
• 4 key differences from 1st 3 waves
• Breadth consistent revenue source for state
  government in 38 states Wash., DC
• Depth multiple games daily number, lotto
  scratch tickets, keno VLTS
• State authorization ownership (5 states use
  private vendors)
• Good causes in past lottries were one time
  event _at_ present consistent source of revenue

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A Brief History of US Gambling

• 5th Wave The Triumph of Casino Gambling
  (1993-present)
• Casino gambling in 27 states
• 3 explanations for Casinos growth accounting for
  41 of total gambling revenue
• 1980s Las Vegas Atlantic transformed from
  casino operations to family oriented vacation
  centers
• 1990s re-introduction of riverboat gambling
  (limited casino play)
• 1988 IGRA led to development of Indian Casino
  gambling
• 558 Federally recognized tribes
• 24 states have tribal-state compacts
• 326 tribal gambling operations
• Indian gaming 1999 8.26B (10 of total gaming
  industry)

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Types of Games

• Games of Skill
• Table games
• Pari-mutuels
• Sports wagering
• Billiards
• Games of Chance
• Scratch tickets
• Daily Number
• Power Ball
• Video Poker/Slots
• VLTs

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Cost/Benefit Analysis

• What are the benefits from gambling?
• Short Term
• Excitement
• Economics
• Escape
• Entertainment
• Long Term
• Individuals
• Families
• communities

• What are the costs from gambling?
• Short Term
• Physically
• Psychologically
• Socially
• Spiritually
• Long Term
• Individuals
• Families
• communities

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3 Major Policy Issues Facing Gaming Industry

• The Addiction issue
• Small of patrons will become addicted
• Safeguards are needed
• The Fairness issue (primarily with lotteries)
• odds of winning the lottery are extremely small
• of jackpots returned is less than other wagers
• Commercial Casino Slots 91 payback/player losses
  9
• VLTs 70 payback/player losses 30
• Other Lottery (Powerball, daily Number, Keno) 60
  payback/player losses 40
• The Honesty issue (is gambling rigged)

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Recommendation of the 1999 National Gambling
Impact Study Commission

• States enact a gambling privilege tax whose
  revenues would be earmarked for gambling
  education treatment programs
• Toll-free number for problem gambling assistance
  and/or warning labels about the risks and odds of
  gambling be posted
• Recommended states regulate gambling within their
  borders

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Responsible Gambling in RI A Working
Partnership (2000-present)
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Responsible Gambling Programs in RI

• RICPG has been working with RI Lottery, Lincoln
  Park, and Newport Grand Jai Alai for the past two
  years to develop Responsible Gambling Programs.
  These programs include
• Creation of Responsible Gambling Committees which
  meet on a regular basis
•       Two mandatory training programs for all
  facility employees on Problem Gambling and
  Responsible Gambling Programs
•      Working with Security to track, check, and
  interdict underage patrons
•      Development of self-exclusion programs (1
  year and life-time) including the option of
  self-exclusion by mail
•     Meeting with the 2 problem gambling
  treatment providers to discuss matters of mutual
  interest including publicity of gambling
  treatment services and enhancing access to
  gambling treatment
•      Assisting the 2 gaming facilities in the
  acquiring Employee Assistance Program for all
  their employees
•     Financial support and active participation
  in the annual NE Conference on Problem Gambling

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Responsible gambling is about minimizing the
potential harm in 4 ways

• Mandatory training for all employees on problem
  gambling and the facilitys responsible gambling
  program.
• Self-exclusion for both patrons employees (in
  person and by mail)
• In-house publicity (signage, warning stickers,
  posters, brochures, etc.)
• ID Checks for underage gamblers

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Public Health Framework to Understand Gambling
Public Health Interventions
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How Extensive is Problem Gambling?

• APA estimates 1-3 adult population
• Harvard Prevalence Meta-Analysis
• 4 problem gamblers
• 2 pathological gamblers
• NGISC/NORC study
• 3 M problem gamblers
• 2.5 M pathological gamblers
• State Prevalence studies range from 1. to 7.3
  (16 states studied by Volberg)
• CT 6.3 and MA 4.4 RI ?

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Gambling Treatment Availability

• Nationally treatment resources limited
• Only 15 State funded gambling treatment programs
• 3 residential treatment programs
• 1 inpatient treatment program
• State treatment resources limited
• Only 2 gambling treatment programs RIH CODAC
• 150K treatment a year for 5 years (maxed out
  1st year)
• 180 patients seen in 1st year w/minimal publicity
• No inpatient or residential gambling treatment
  programs
• State self-help resources limited
• In Rhode Island - 8 GA meetings
• Over 300 AA meetings in Rhode Island
• 30 NA meetings in Rhode Island

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PG Allocation by Service
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Where Are We Going in Addressing Problem Gambling?

• What is the role of the RICPG?
• What is the role of the RI Legislature?
• What is the role of the House Finance Committee?
• What is the role of Lottery and the Lottery
  Commission?
• What is the role of LP and NGJA?
• What is the role of the public?

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Proposed Policy/Regulatory Changes

• Enactment of a comprehensive Problem Gambling
  Program
• 1 of gross VLT revenues be allocated to problem
  gambling issues
• Problem Gamblers Helpline
• Transfer management from RI Lottery to Dept. of
  MHRH
• Put contract out to competitive bid
• Prevention
• RI Council on Problem Gambling to provide in
  partnership with RI Dept. of Education RI Dept.
  of Elderly Affairs and RI Health Dept.
• A program for seniors
• A program for adults
• A program for children adolescents

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Proposed Policy/Regulatory Changes

• c. Training
• Grant to be administered by DATA to provide
• Annual 60 hour gambling training (new counselors)
• Annual 30 hour gambling continuing education
  program (certified gambling counselors)
• Monthly gambling supervision group (both groups)
• d. Treatment
• To be administered by Dept. of MHRH
• Develop multiple levels of PG treatment
• Outpatient
• Inpatient
• Day treatment
• Residential

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Concluding Remarks

• In conclusion, I would like to thank the RI
  Special House Commission to Study Gambling for
  the opportunity to present our views on this
  issue. I would be happy to respond to any
  questions.

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In Closing

• Knowledge is the gift
• of memory
• given to many
• wisdom is the gift
• of experience,
• given only to a few
• Victor Frankel, MD
• Holocaust survivor, 1959