Legalized Gambling Term paper

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Through the years, gambling has become America's


pastime. Over 60 million Americans make some sort of


wager every day.1 When compared to other recreations(in


billions of dollars) in 1990, gambling institutions made


2.2 more than magazine sales, 8.3 more than book sales,


20.9 more than theaters, and a whopping 21.8 more than


movies.2 This number has increased to this high level


because of the growth in the amount of legalized gambling


establishments and the accessibility to these


establishments, both of which increases the number of


gamblers. The compulsive or pathological gambler affects


society most. According to Stuart Winston,


The compulsive gambler is the backbone of gambling.

Without the compulsive gambler, there would be no Las

Vegas, no Off Track Wagering. Two thirds of the race

tracks in America would close. The attendance of sporting

events would drop 50%, and T.V. wouldn't bother with

sports beyond championship events.....The compulsive

gambler bets a piece of his life everyday, and a piece of

his family's. The other 45 million people who gamble are

having fun.(Out of the 60 million who gamble every day)3


These gamblers often resort to crime to pay off their


debts and anger. Even though legalized gambling has


changed through time, and has been "accepted" in America


today, it remains detrimental to society, and should not


be legal anywhere.


American gambling can be traced back to the early


years of the nation. Different forms of gambling, such as


lotteries, remained popular until 1890, when U.S.


jurisdiction made lotteries and all other forms of


gambling illegal by direct prohibition.4 Gambling had














become more and more a "low life" thing to do. These low


lifes, called "rowdies", would bet or take a bet on


anything. Most tried to look different from everyone else


by wearing thick imitation gold chains, a dyed black


mustache, a velvet coat, and long hair.


New York City alone had about 30,00 people earning a


living from gambling in the 1890's. The casino's were


plush and usually had a buffet with alcohol. The


operation made a lot of money, most from cheating. Each


casino would hire "agents" to come in and claim winning


keno numbers, afterwards giving most of it back to the


casino. Counterfeit money was also handed out to the few


people who happened to win. Any protest from a loser and


he would end up with a black eye. Oscar Handlin said, "An


individual may sometimes take away substantial sums of


money, but in the long run the banker must win."5


Essentially, gambling hurt society in the early years of


America. For the next 25 years, gambling became unpopular


again because of reports of cheating and changing American


values. Anything thought of to be harmful to society


became illegal. For example, alcohol became illegal by


Prohibition.


The reintroduction of gambling resulted in the return


of corruption and fraud. By the mid 1920's, state after


state abolished its anti-gambling laws. Gambling had


become more and more accepted because of churches holding


bingo sessions and legitimate racetracks being built. In














1931, gambling became totally legalized in Nevada to


replace the money the state was getting from depleted ore


rich mountains.6


Organized crime started to turn toward gambling as


their main source of income after Prohibition ended in


1933. These criminals made most of their money


bootlegging alcohol during Prohibition, so once alcohol


prices went down, they needed another way to make a lot of


money fast: gambling.7


Organized crime started getting more involved with


gambling once Las Vegas started to boom. Bugsy Siegal, a


half insane murderer who was sent to Nevada to enforce mob


control of the race wire services, opened up the first


hotel/casino in Las Vegas. His hotel, the Flamingo began


a long period of gang involvement in Las Vegas. In 1947,


the Desert Inn opened, run by a gang from Cleveland. A


savage group of people, including the infamous Meyer


Lansky and Lucky Luciano, established the Desert Inn in


1947. Lansky, the brains of this group, was a genius with


numbers, while Luciano, the brute of the group, was a


genius for finding Lansky. 1952 brought the opening of


the Sahara by some run-out's from Oregon. The Sands, with


Frank Sinatra as a headliner, opened in 1953, funded with


Chicago mob money. This was the first attempt at bringing


big time entertainment out to Las Vegas to draw people to


casinos. Tony Stralla, a hoodlum from California, opened


the Stardust in 1955. The Stardust towered over the rest














of the hotels on the strip and had more luxuries inside.8


Each hotel became bigger than the next and all made a


lot of money. Much of the money was "skimmed" off the top


and sent around the country to different mob headquarters


before taxes could be taken out. By the late 1950's,


federal accusations such as the Kefauver expose and


investigations by the Treasury Justice, showed the mobs


involvement in Las Vegas and the ways they were stealing


money from the government such as skimming.9 Once again,


the public saw decided gambling was bad after, the news of


corruption and fraud, just like in the 1890's10


Today, everyone has given gambling, a booming


corporate industry, another chance. Squeaky clean owners,


such as Steve Wynn and Donald Trump, own numerous casinos


in Las Vegas and Atlantic City. Each has been portrayed


by the media as "good guys" who just happen to be making a


lot of money through gambling. They advertise gambling as


a legitimate business, with corporate style offices


staffed by corporate style employees and have stocks


representing their company on the stock market.11


Each new hotel/casino is bigger and nicer than the


next, just like in the late 1940's and early 1950's. They


bring in big-time gamblers with complimentary amenities,


such as free air-fare and suites. Middle class gamblers


are lured to casinos by free food. For lower class


gamblers, owners provide free transportation.12
















Outside of Las Vegas, growth can be seen even more.


State lotteries, riverboat casinos, bingo parlors, and


Indian Reservation casinos can be seen all across the


country. More and more states are legalizing forms of


gambling each year. The gambling cycle is still rising


and may never come down. This recent resurgence in


gambling tried to clear its image, but problems still


exist.


The growth in gambling venues has greatly increased


the chances for an average person to gamble legally. This


growth, in turn, has exponentially increased the number of


gamblers. By the year 2000, 95% of Americans will live


within a 3-4 hour drive of a casino.13 Today, the only


two states without any kind of legal gambling are Hawaii


and Utah.14 Because of this, the amount of money gambled


legally in 1993 was 2,300% higher than the amount wagered


in 1974.15 From 1982-1990, Americans increased their


amount of money they gambled over twice as much as their


incomes increased.16


Despite the growth of this new "clean" gambling


industry, the results of gambling remain frightfully


dangerous. Casino owners, while no longer street


hoodlums, are still mercilessly preying on the weakness of


their clients. The owners of these gambling institutions


have two rules: get the people to start playing and keep


them playing.17 They make their casinos more enticing for


the average person by making themselves look like good














citizens. Casino owners make donations to local charities


and schools and run lucrative adds sounding as if making


money at their casino will be easy and fun.18 The


industry has also stayed up with the times making betting


easier, more appealing, and more exciting.19 Harrah's


casino spends thousands of dollars each year to see


whether fresher air, wider aisles, and back supports can


increase gambling. The Hilton in Las Vegas even went so


far as to release a scent called "Odorant 1", produced by


Alan Hirsch, a Chicago neurologist. This scent made the


air smell "fresher", in a slot machine pit. These slot


machines saw 45% more action than usual.20


Why do these casinos want each person in their casino


to stay longer, and to bet more money? Because the odds


are in favor of the house, and the more money gambled, the


more the house will make. CEO and President of Claridge's


Casino in Atlantic City, Bob Renneissen, said, "Our goal


is not to get more out of a customer in three hours but to


get him to stay for four hours."21


In lotteries and horse racing the house earns the


same percentage from the wagers, no matter what the


outcome is. This fact ensures that more money is wagered


the more money is made. In casino's, each game has a


certain percentage of winning. Sports books get 10%,


craps gets .6-1.4%, roulette gets 5.2%, blackjack receives


2-15%, and keno gets a whopping 20%.
















In 1980, a math genius named Jess Marcum calculated


that a craps player who made just a one dollar bet every


bet for two months straight would have a one in two


trillion chance of winning $1000 before losing $1000. In


contrast, if that person only plays for 25 minutes and


bets $200 every time, they would increase their odds to


1.15 to 1.22 Basically, the longer the gambler stays, the


more money the house will take in. The casinos of today


do not need blatant fraud and corruption, like their


predecessors, to make large sums of money. As long as a


casino remains popular, it will make money.


The recent resurgence in gambling has created more


problems in America. In 1980 Tunica, Mississippi was


known as "America's Ethiopia." Around 53% of the


population lived in poverty. Everyone thought the answer


to the community's problems would be to build a casino


This did make new jobs for some people, but the price of


land increased 10 times more. Property taxes increased


...

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