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Testimony of RI Council on Problem Gambling RICPG

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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Testimony of RI Council on Problem Gambling RICPG

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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: 1973 Clotfelter & 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

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