Gambling - Problems and Cause

The United States as a society both promotes and stigmatizes gambling. This dual representation creates conflict in many aspects of living. The most apparent conflicts are regarding legalities, monetary and economic, and mental health issues. Determining what part or type of gambling should or should not be legal appears to be determined through moral and financial considerations. There is clearly a financial gain for the states that take part in legalized gambling. In return, it is argued that there is great financial strain both on the economy and in families. It is also not clear whether "the norm" considers gambling a safe and fun recreation or a dangerous addiction. The conflict is apparently linked to the duality of perception.

While examining the history and types of gambling displayed in the United States, it becomes evident that there is not yet a common understanding for whether or not gambling is deviant. There are various historical and current examples supporting gambling as well as the opposition of it. Determining which types are considered legal and which are not, heatedly come down to moral standing and money. It becomes so confusing that commonly participants of illegal gambling do not know that they are partaking in an illegal act.

Over the course of history gambling has been considered an accepted form of recreation. Our founding fathers, in fact, held a lottery to fund the American Revolution (Torr, 2002). Pari-Mutual betting is when individuals place bets against each other on a race or event; the winners split the earnings with a percentage given to the manager of the monies. This form of betting "was invented in late nineteenth-century France by Pierre Oller (Jacobson. 2006)." It originates from 1875 but gained popularity between the 1920's and 1930's. A handful of states, in 1933, legalized this type of gambling in order to regulate corruption due to the use of bookies and generate money for the state. These bets originally took place in person, though currently most likely occur through off track betting sites that were approved by New York legislature in 1970 (Jacobson. 2006). Horse race betting in itself dates back to wealthy Greeks and Romans. The sport transited into Thoroughbred racing, which raced a faster breed of horse. This quickly spread through the United States and can date back as early as 1665 in New York (Jacobson. 2006). "As of 2005 there were about ninety Thoroughbred racetracks in the United States; those in warm parts of the country are open throughout the year, while others are active only during the warm months. Some are government-owned, while others are privately held (Jacobson. 2006)".

"Sports gambling has a long history of association with organized crime, which ran illegal bookmaking operations across the country as early as the 1920s (Jacobson. 2006)". In 1931 casino gambling was legalized in Nevada as a way to generate revenue during the Depression. During that time organized crime took control of the industry causing the federal government to act. As a result the mobs focus shifted to bookmaking during the 1950's (Jacobson. 2006). Forms of gambling have evolved just as rapidly as the laws to control the corruption and profit surrounding them.

Determining how and what to control under the recreation called gambling has posed a large problem in multiple areas. A common ground for argument is the proposal that betting on college sports should have banned nation wide. Also a subject of controversy is the evolution of internet betting and how it should be monitored and controlled. Internet betting has led to an increase in underage gambling which poses another conflict for legal actions. Legislature continuously attempts to adapt to technologies progression in the gambling scene and authorities often creatively charge individuals responsible for what is deemed deviant.

College sports commonly raise conflicting legal views. As the law stands, betting on college sports is only legal in Nevada. The conflict occurs between those who oppose and those who support Nevada's legalization of college sports betting. Those who oppose it argue that the integrity of the sport is the cost for the recreation. Those who support it claim that Nevada's sports betting affects the integrity very little.

"Both legal and illegal sports wagering have been at the heart of nearly every major collegiate sports wagering scandal (Torr, 2005)." Over the years investigations into fixed games and point shaving scandals all linked back to gambling. College level sports participants are at a higher risk of falling for pressure to throw games. The high tech gaming systems in Nevada are assumed to indirectly apply additional pressure on the college teams. Torr's article (2005) depicts an argument promoting a nationwide ban on college sport betting. It is theorized that this would send a clear message that it is indeed illegal activity. There would no longer be a mixed message and exposure to this form of gambling would decrease. More importantly, "eliminating sports wagering will provide important positive benefits for intercollegiate athletics (Torr, 2005)."

Alternatively it is argued that no positive affect would come from banning sports gambling in Nevada. In an opposing argument document by Torr, it states that "approximately 99 percent of all sports gambling takes place illegally outside of Nevada (Torr, 2002)." During that time it was estimated that a total of "$6 billion" was illegally wagered every weekend within the 20-week period of college and professional football season. Nevada was responsible for only 1% of all the betting on sports in the nation. Additionally the amount of money wagered or made from legal sports betting in Nevada is only a very small portion of the over all amounts in their establishments. This position argues that because Nevada is equipped to recognize possible "fixed" games or point shaving schemes that they are in actuality a benefit in fighting potential corruption. To ban this form of gambling would only make matters worse in that there would be no organization in an equal position to monitor such behavior. Finally, "it's simply not reasonable to assume that the impulse to gamble can be controlled or reduced by legislation, particularly in this age of Internet gambling, which allows anyone to bet through an offshore sports betting site or casino or both just by the flick of a key on their computer (Torr, 2002)."

The internet in fact is responsible for an increase in corruption surrounding gambling. In 1961 the statute created to control "large mob bookmaking operations" did not predict the impact that toll-free numbers and internet would have on the industry. Additionally due to the harassment on bookmakers the mass of them moved their businesses to offshore islands where gambling is legal. They continue to target U. S. gamblers by advertising locally. "The U.S. attorney's office in New York estimated that offshore betting via toll-free phone lines would rise from $60 million in 1996 to $600 million this year (McGraw, 1998)."

One problem surrounding internet gambling is how to control these sites under current legislation and how to keep gambling monies in the country. The federal Wire Act of 1961 is often used in attempt to control online gambling. This act supports others such as the Travel Act and the Transportation of Wagering Paraphernalia Act. These Acts were of course designed to eliminate organized crime from the industry. This becomes a difficult defeat where internet gambling is concerned. The gambling sites are located in countries that allow legal gambling; therefore there are no grounds in which to try them. A major proponent of curbing electronic transfers of money to online gambling sites is, Jon Kyl (R-AZ). He introduced the Internet Gambling Prohibition Act (1997) which would assumedly control all U.S. financial institutes from transferring funds to online gambling sites. Alternatively, other members of congress argue that instead of banning the financial transactions the government should benefit by taxing them. (Jacobson, 2006). The industry itself argues that "the U.S. gaming laws are hypocritical" and that bettors are electronically "transporting" themselves by internet. According to this view that would be no different then driving to Nevada to do the same thing. (McGraw, 1998).

The serious side and less arguable is that of underage gambling on the internet. The internet makes gambling more accessible to children and young adults. This can lead to serious gambling addictions and financial distress at an early age. The consequences that come from such "problems" would cost the nation more then they could gain by promoting this recreation.

Two articles written by David M. Haugen, explain how the accessibility of internet gambling sites has already corrupted young consumers. Minors are already very keen to internet game playing and become quickly vulnerable to the interaction and "rush" of gambling. In fact studies show that, "high school-and college-aged individuals possessed the highest problem rates (Haugen, 2006a)." and that "Gambling as a phenomenon among minors is two to four times more common than among adults (Haugen, 2006a)." A survey conducted involving 100 gambling websites determined that there is a low rate of accessibility for underage users. Sadly most warnings were not easy to find, with 20% of them not having a warning at all. (Haugen, 2006b). Haugen further expresses that college age and younger gamblers are more "pathological" with betting than that of "the general population (Haugen, 2006b)."

As earlier stated, legislature has attempted to harness some aspects of the gambling industry. They are often forced to creatively use the laws already established to continue banning deviant behavior and corruption from the recreation. Kyl's bill was approved by the Senate Banking Committee and a similar bill was passed by the House in July 31, 2003 (Haugen, 2006b). Currently as this bill awaits final approval, American Express and Visa have both initiated changes that safe guard against gambling transactions.

A third article by Haugen discusses the role of federal government on gambling. In it he explains that Congress passed legislation in the late 1940's "prohibiting importation or transportation of illegal lottery tickets, either on one's person or via third-party carriers such as express delivery services (Haugen, 2006c)." Also in the 1950's the congress passed laws to prohibit transporting gambling paraphernalia over state lines into states that do not recognize such machines as legal. There are also regulations established for the advertising of gambling. The Federal Communications Commissions have received authority to regulate this. However, "Congress has chosen to make advertising gambling a part of the criminal code (Haugen, 2006c)." Another example of perceptual duality is shown here. That in the efforts of the government to generate revenues certain exemptions are made for state lotteries and Indian Casinos. There is also an exemption for charity events. State-run and charitable casino games can even advertise in states that gambling is illegal in (Haugen, 2006c). This is an apparent depiction of propaganda surrounding gambling being both promoted and stigmatized. As of 2002 "47 states permit lotteries, horse and dog racing, commercial and Indian casinos, and/or video poker. Only Hawaii, Utah, and Tennessee have no form of legalized gambling (Torr, 2002)."

Current cases of gambling rings are still being uncovered and still exists is the fear of organized crime involvement. In 2006 The New York Times reports that the Hunts Point Cooperative Market in Bronx was the setting for a small gambling ring that generated profits of about $200,000 a year. This ring had apparent ties to a well known mob family. The second in command was said to be John Caggiano. Caggiano was an associate of the Genovese crime family. The gambling ring was open to employees of the market as well as customers. Leading the ring was a soldier for the Genovese family who was "currently" serving time for racketeering charges. Caggiano was being charged for enterprise corruption, while others stood charges of criminal usury or promoting gambling. (Hartocollis, 2006).

Monetary and economic factors affect the entire nation down to the individual and their families. Not all the factors are negative and again conflict and duality arise. The government stands to profit greatly due to legal gambling revenue. "Legal gambling operations in the United States pay millions of dollars in taxes annually to local and federal governments (Haugen, 2006a)." Cities, such as East St. Louis, Missouri have learned to supplement city funding with recreational gambling. East St. Louis harbors The Casino Queen Riverboat which pays up to $12 million annually in taxes. An added benefit to the city is the 1,200 jobs the riverboat created. This is by no means an uncommon source of revenue for states and they often are far more willing to legalize gambling if they are in need of financial increase. "During the 1980s, sixteen of the twenty-two states with the greatest increase in unemployment created lotteries (Haugen, 2006a)."

There are negative monetary and economical factors as well. The internet alone creates economical damage. The United States loses a lot of tax revenue to the overseas gambling sites. There is also a loss of spending in the gift shops and on food when one visits a gambling facility (Haugen, 2006a). "Sportingbet founder Mark Blandford estimates that if his $70 million in online wagers from U.S. bettors were taxed at the same rate as Las Vegas casinos, he'd owe the government $4.4 million this year (Haugen, 2006b)." Blanford predicts that players will ultimately open up non-American bank accounts to fund their gambling.

Another negative influence on economy is the use of credit on the gambling websites. This is a great advantage for the establishments in that they offer credit to the participants and in return are fronted a large payment. The problem however, occurs when the consumer can not pay off the charges. Sometimes lawsuits are filed against the credit card companies fighting the charges. If the credit card companies lose it ultimately results in higher fees for all non-gambling credit card holders. Unfortunately if the credit card companies win, the end result remains the same. (Haugen, 2006a).

Haugen further explores societal costs of gambling that result from problem gambling. "Societal costs of pathological gambling includes the expenditure of unemployment benefits, physical and mental health problems, theft, embezzlement, bankruptcy, suicide, domestic violence, and child abuse and neglect (Haugen, 2006a)." It is estimated that 15% of all money lost in gambling is by compulsive gamblers. "Beyond this monetary figure, how can society quantify a divorce caused by a gambling addiction or a gambling-induced suicide (Haugen, 2006a)?"

The final consideration of conflict, resulting from the dual perception of gambling, is mental health issues. There are many problems that can come from gambling and they affect individuals across the board. Gambling can be additive and can lead to crime."Marilyn Lancelot She had embezzled more than $300,000 from her employer to feed her addiction _ a crime that cost her 10 months in state prison (Graham, 2006)." The world of internet increases the additive nature.

Torr's article states that gambling was deemed "the addiction of the 90's" by the American Academy of Pediatrics. Through research they discovered that more than "one million United States teens" are addicted to gambling. The national Gambling Study Commission describes gambling as "a gateway behavior for adolescent gamblers (Torr, 2002)." The problem is that most pediatricians and parents are looking for signs of alcohol and drug abuse and never gambling. This is partly due to lack of awareness that such a supported recreation is actually dangerous.

In addition, Coleen Moore from Illinois Institute for Addiction Recovery states that "women have described slot machines as being their friends (Graham, 2006)." It is common that women use gambling as a form of escape while male gamblers gravitate toward the "thrill" of it. This is what presumably leads to the conclusion that the internet increases the vulnerability to addiction.

Haugen (2006b) states that internet gambling can be more addictive than other forms due the high speed "gratification" and the fact that the consumer can remain anonymous. The tragedy is that this addiction does not stop at the affects that it has on the individual the entire family is financially and emotionally affected by it. "The growing concern is online gambling may create more addicts (Haugena, 2006b)."

In researching and analyzing this data one can easily consider the anomie-strain theory in explaining the phenomena gambling. Robert K Merton (Thio, 2006), describes the anomie-strain theory as an imbalance in two "elements of social and cultural structures." The one element is that the society or culture determines important goals in which members should strive to achieve. The second element is that the society or culture determines appropriate means in which to achieve the goal. The strain occurs as the first receives more emphasis or importance than the latter. This is a common problem in societies that place excessive emphasis on obtaining success measured monetarily.

The United States as a society places great emphasis on monetary value. Financial wealth symbolizes success, importance, respect, confidence, intelligence, and capability among all other positive characteristics. Late night television and the internet are inundated with get rich quick schemes where the only person getting rich is the one that is selling the idea to desperate viewers. The ability to get ahead is strained by credit card companies targeting American residence with the dream of having it now. What ever it is you work so hard for and can never seem to achieve you can have it now with the swipe of a card. Gambling is selling that same concept with to a culture where winning that jackpot could actually win them importance and freedom. The added twist is that it is a potentially addictive recreation.

The pressure is on the goal, to become rich. The focus is on the deviant behavior; "bad gambling addicts." The thing that is missing is the emphasis that should be placed on the proper means in which to achieve financial freedom. The harmony is lost. The society that is supposed to be united is utilizing dual perceptions. American Societies promote a safe and fun recreation called gambling, that will provide money for schools and neighborhoods. The same society stigmatizes the recreation when the consequence is debt, homelessness, suicide, or theft or embezzlement. As a result the strain affects many aspects of life including legalities, monetary and economic, and mental health issues. All of these aspects ultimately affect family dynamics and are already designing the adults of the future.

References

Graham, Kristen A. (2006). "Sports wife and rare high roller.(Janet Jones, Wayne Gretzky's wife)Philadelphia Inquirer (Philadelphia, PA): Opposing Viewpoints Resource Center. Thomson Gale. Retrieved on April 25, 2007 from .."

Hartocollis, Anemona. (2006). "11 Arrested in Betting Ring Linked to Mob in the Bronx.(Metropolitan Desk)"The New York Times : B2(L). Opposing Viewpoints Resource Center. Thomson Gale. Retrieved on April 25, 2007 from.
.

Haugen,David M (2006a). "Internet Gambling Damages the Economy and Harms Society"Legalized Gambling: Contemporary Issues Companion Series. San Diego: Greenhaven Press. Opposing Viewpoints Resource Center. Thomson Gale. Retrieved on April 25, 2007 from .
.

Haugen ,David M (2006b). Internet Sports Betting Is a Serious Problem."Legalized Gambling. Contemporary Issues Companion Series. San Diego: Greenhaven Press. Opposing Viewpoints Resource Center. Thomson Gale. Retrieved on April 25, 2007 from
.

Haugen, David M (2006c). The Federal Government's Role in Regulating Gambling"Legalized Gambling. Contemporary Issues Companion Series. San Diego: Greenhaven Press, Opposing Viewpoints Resource Center. Thomson Gale. Retrieved on April 25, 2007 from .
.

Jacobson, Robert (2006). "Sports and Gambling."Sports in America: Recreation, Business, Education, Controversy.Detroit: Thomson Gale Opposing Viewpoints Resource Center. Thomson Gale. Retrieved on April 25, 2007 from
.

McGraw, Dan. (1998) "All bets are off for offshore bookmakers. (fighting offshore gambling which is controlled by computers using the Internet, has become a top priority for federal prosecutors)(Update)(Brief Article) U.S. News & World Report 124.n10 : 1(1). Opposing Viewpoints Resource Center. Thomson Gale. Retrieved on April 25,2007 . ."

Thio, Alex, Calhoun, C. Thomas (2006). Readings in Deviant Behavior 4^th Edition. Pearsons Education Inc., USA

Torr,James D (2002). The Government Should Not Ban Betting on College SportsGambling.: Opposing Viewpoints? San Diego: Greenhaven Press, Opposing Viewpoints Resource Center. Thomson Gale. Retrieved on April 25, 2007 from .."

Torr ,James D (2005).Gambling on College Sports Should Be Banned Nationwide."Sports and Athletes Opposing Viewpoints? San Diego: Greenhaven Press. Opposing Viewpoints Resource Center. Thomson Gale. Retrieved on April 25, 2007 from .