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Nevada: A Social and Economic Model for Our Nation? Think Again.

This study examines the social and economic infrastructure and stability of Nevada, a state built mainly on gambling revenue since 1931.

Articles within this series

 

Beyond the Limits of Recreation: Social Costs of Gambling in Southern Nevada is a report that examines the condition of a gambling-dependent state after 70-plus years of being the nation's gambling Mecca. Professors Thompson and Schwer offer a comprehensive report.

In early February of 2003, an insightful report on gambling, titled Beyond the Limits of Recreation: Social Costs of Gambling in Southern Nevada, was released at the 2003 Annual Meeting of the Far West and American Popular Culture Association. This is a significant study on the social costs of gambling in a "mature" gambling community such as Nevada. The researchers and authors of this report are credible gambling analysts from the University of Nevada in Las Vegas (UNLV).

This study examines the social and economic infrastructure and stability of Nevada, a state built mainly on gambling revenue since 1931.

As you read this study, pay special attention to several key findings:

  • Gambling has become more popular among women. Lotteries, free standing slot and/or video machines, bingo games, and neighborhood casinos can be very enticing to female participants (p. 6).
  • Gambling addiction's impact on marriages and families is substantial. Nearly a third of the people interviewed were either divorced or separated, many crediting gambling as the main source of contention (p. 7). Note: Former surveys of Gamblers Anonymous members have indicated that problem gamblers themselves tend to underestimate the significance of their gambling addiction, while spouses often indicate that gambling has a much larger impact on their marriage.
  • One-third of the problem gamblers surveyed, work - or have worked - in the casino industry. Once again, this research supports availability and exposure as key elements in facilitating gambling pathology (pp. 8-9).
  • Video poker machines were a favorite among the respondents. Over two-thirds found the machines constitute "serious" problems for them. Slot machines were also considered to be quite addictive (p. 9).
  • Of the gamblers who went to other people for money, over half went to their spouse or passed bad checks, and almost one-third went to their children for help. The average debt was $57,160 (p. 10).
  • Almost half of the respondents were led to bankruptcy through gambling, and over half indicated that they had stolen money or materials to gamble or to pay gambling-related debts (p. 11).
  • Workplace productivity losses accounted for over a day's work each month. (p. 12) The survey found that two-thirds of the respondents had planned suicides as a result of gambling. One-third had actually attempted suicide (p. 13).
  • The report mentions that most statistics are conservative. Errors most likely occurred in underestimating actual numbers (p. 14).

Read the Report — Beyond the Limits of Recreation: Social Costs of Gambling in Southern Nevada (PDF)

"The challenges we face reflect the unique conditions of today's Nevada, and our history. For years, our economy has depended almost exclusively on tourism and gaming [gambling], rather than by exporting goods and services. Three out of every four of our tax dollars are collected from sales and gaming taxes; taxes vulnerable to swings in the economy."

..."Implicit in this tax strategy was a belief that the revenues from gaming and tourism could keep pace with our growing and diverse population. Unfortunately, this strategy has failed."

..."My fellow Nevadans, the lesson from the last 20 years is clear; our revenue system is broken because it has relied on regressive and unstable taxes [from gambling]."

-Gov. Kenny Guinn of Nevada, State of the State Adress, 2003

Chad Hills is the Analyst for Gambling Research in the Public Policy Department at Focus on the Family.
 
 

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