Lottery Fact Sheet

Children & Youth

It is illegal for children/youth to gamble. Nevertheless, 24% of 17 year olds in Georgia purchased lottery tickets last year, 17% of 13 year olds also purchased tickets [1]. 32%, 35%, and 35% of minors purchased lottery tickets in Louisiana [2]. 75% of high school students in Massachusetts purchased lottery tickets [3]. With the lottery among the most popular forms of gambling, a Connecticut Council on Problem Gambling study demonstrated that one in ten high school students were compulsive gamblers. [4]


Introduction of gambling causes an increase in weapon use at school by children/youth for 28% to 47%. Also caused an increase in fighting from 25% of non-gambling youth to 45% - 62% depending upon level of dependency. [5]

While 392,764 persons (by 1997) received H.O.P.E Scholarships in Georgia, up to 17,700 adolescents had also experienced severe problems with gambling. Another estimated 39,100 to 56,800 adolescents in Georgia are at risk for developing gambling related problems. [6] In other words, for every twenty-one persons (not all children) who receive a H.O.P.E Scholarship in Georgia, one additional child becomes addicted.

In fact, Money Magazine's extensive research shows that nationwide, "...lottery states collect more in taxes and spend less on schools than states that go without the games." [7]

Economic Policy

Lotteries draw money out of the economy instead of pumping it up. A survey of 1,200 California stores reported an average decline in food sales of 7% with the introduction of the California lottery. [8]

The 298 counties in the US with the highest bankruptcy rates had a bankruptcy increase of 18% directly the result of gambling. Shelby County has the highest concentratoin surrounding it and as a result has the highest bankruptcy rate in the US. [9]

No state lottery in the US works unless it is marketed to the poor. [10]

Nationwide, marketing is increased immediately around the time of mailing of welfare and ssocial security checks. [11]

Nationwide, the ticket outlets must be located in the poorer communities for a lottery to work. Few if any are located in wealthier communities. [12]

The top five percent of lottery players buy 51% of all lottery tickets. The top 10 percent account for two-thirds of the total ticket sales, and the top 20 percent of frequent players produce 81 percent of sales. [13] In Virginia, 29% of the state's lottery ticket sales are made to just 2% of it's adult population who are the poorest. [14]

Taxes

Every state that has a lottery has had higher increases in taxes than those that do not for the same period. [15]

Local sales taxes, income taxes and property taxes are forced to increase because money which would have gone to goods and services taxed by local entities have shifted to lotteries leaving lower revenue for loca governments. [16]

Each new problem gambler bring new costs to staes of at least $13,000 per person (1994 figures). [17] In Illinois, a non-exhaustive list of direct costs of gambling range from $300 million to over $2 billion.

No money from the proposed lottery referendum will provide any tax relief [18]

Lottery Inherency

Inherent to all forms of gambling, with the lottery providing the worse odds, the majority always looses!



References:

  1. Rachael A. Volberg, Gemini Research, Report to the Georgia Department of Human Services, June 25,1996.
  2. Joe Gyan, Jr. "More Louisiana Youths Try Gambling than drugs" (Baton Rouge, La) Advocate, August 8, 1997; Lynn S. Wallisch, "Gambling in Texas: 1995 surveys of Adult and Adolescent Gambling Behavior", Texas Commission on Alcohol and drug Abuse, August 1996, p. 78; Lyn Bixby, "Lottery Pitch See as Luring Kids", Hartford Courant, October 23, 1997, p A4. As quoted in The National Gambling Impact Study Commission Report, Gambling regulation, p 3-4.
  3. Scott Harshbarger, Attorney General of the Commonwealth of Massachusetts, "Report on the Sale of Lottery Tickets to Minors in Massachusetts", July, 1994, p3-4. Quoted in National Gambling Impact Study Commission report, July 1999, p 3-5.
  4. Connecticut Council on Problem Gambling, 1996 Survey p 1.
  5. "Gambling and Other Risk behaviors Amony 8 to 12th Grade Students" Pediatrics, August 2, 1998.
  6. Rachael A. Volberg, Gemini Research, report to the Georgia Department of Human Services, June 25, 1996.
  7. Keating, Peter, Lotto Fever: We All Lose, Money", May, 1996.
  8. Dr. John Hill, Alabama Public Policy Institute, 1999, p 10.
  9. SMR Research Corporation, "The Personal Bankruptcy Crisis, 1997: Demographics, Causes, Implications, and Solutions".
  10. Gearey, Robyn, The New Republic, "Gaming the Poor: How State Governments Make Big Bucks By Conning the Most Vunerable", "The Numbers Game, State Lotteries: a ticket to poverty", May 19, 1997, p 22-24.
  11. Gearey, Robyn, ibid. p 20. (Note Ohio's SuperLotto Advertising strategy to schedule heavier media for this purpose).
  12. Karcher, Alan J., "Lotteries, New Brunswick, NJ: Transaction", 1989.
  13. Barry M. Horstman, Post Staff report, March 20, 1999 in reporting research done by Charles Clotfelter and Philip Cook of Duke University.
  14. Dr. John Hill, Alabama Public Policy Institute, 1999, p 23.
  15. Keating, Peter, "Lotto Fever: We All Lose, Money", May 1996.
  16. Robert Goodman & Brett Martin, Christian Social Action, July/August, 1994 p 9.
  17. Earl S. Grinois, Prof. Department of Economics, U of Illinois at Urbana-Champaign, Christian Social Action, July/August 1994, p 11.
  18. Proposed Referendum to the Tennessee Constitution.