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2. 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 e
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1. 1 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
2. 2 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.
3. 3 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
4. 4 Lottery and Casino Gambling: 1973Clotfelter & Cook, 1986; Commission on the Review of the National Policy Toward Gambling, 1976.
5. 5 Lottery and Casino Gambling: 1999
6. 6 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
7. 7 US Leisure Expenditures(NGISC, 1999)
8. 8 US Legal Gambling Expenditures(NGISC, 1999)
9. 9 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
10. 10 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
11. 11 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
12. 12
13. 13 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 @ present consistent source of revenue
14. 14 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)
15. 15 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
16. 16 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
17. 17 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)
18. 18 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
19. 19 Responsible Gambling in RI: A Working Partnership (2000-present)
20. 20 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
21. 21 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
22. 22 Public Health Framework to Understand Gambling
23. 23 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 ?
24. 24 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
25. 25 PG Allocation by Service
26. 26 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?
27. 27 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
28. 28 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
29. 29 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.
30. 30 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