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Legalization of online gambling hurts society
[ALSO INCLUDED Style guide, page 7]
City College of San Francisco; Macro Economics
CRN 38777; MWF 2 – 3 PM HC 214
April 15, 2010
Professor McKeever
Min S. Chung; W55-55-5555
OUTLINE
- Supporting Arguments
- Online gambling increases suicide rate
- Online gambling increases crime rates
C. Online gamblers become compulsive gamblers
- Counter Arguments
- Both federal and state governments can gain revenue by taxing the industry
- Online gambling is a source of charity
C. Online gambling creates revenue for credit card companies
- Rebuttals
- More than double of what is gained in tax revenue would have to be paid back through social services
- Gambling takes away from the community and donates a small percentage to charity
- Online gambling creates a risk factor in the credit card industry
I. Supporting Arguments
A. Online gambling increases suicide rates
A study by Dr. Phillips, a professor of sociology at U.C. San Diego found a strong correlation between gambling and suicide. In this study, he examined death certificates of 3 major cities that allow gambling: Las Vegas, Atlantic City, and Reno. He found suicide rates were up to 4 times higher than comparable sized cities where gambling is not legal. Dr. Phillips also discovered visitors to cities which allow gambling kill themselves at a higher rate. Most cities nationwide have a recorded ratio of 1 visitor suicide per 100 visitor deaths. Las Vegas has a recorded ratio of 1 visitor suicide per 25 visitor deaths, 4 times higher the national average. Dr. Phillips concluded that gambling is linked with suicide levels, 2)
B. Online gambling increases crime rates
There has been a substantial increase in the number of crimes after the introduction of casinos in a city or county. Nine years following the introduction of casinos to Atlantic city, the total number of crimes within a 30 mile radius more than doubled. Counties of Minnesota also encountered the same inconvenience post introduction of casinos. In the first six years of casinos in Minnesota, the crime rate in counties with casinos increased more than twice as fast as in non-casino counties. Another county that suffered the same fate is Harrison County of Mississippi. Harrison County, where most of the Gulf Coast casinos are located, witnessed a 58 percent increase in total crimes between 1993 and 1996. These are just a few of numerous historical data that shows an undeniable correlation between gambling and crime rates, 8)
C. Online gamblers become compulsive gamblers
At least 80% of U.S. adults have gambled at least once. However, of the 80%, approximately 5% of these become compulsive gamblers. Using sample statistics of the Minnesota population, 33% of Minnesotans know someone that has a gambling problem, 5).
I. Counter Arguments
A. Both the federal and state governments can gain revenue by taxing the industry
Currently, the United States is unable to tax the online gambling industry. The Unlawful Internet Gambling Enforcement Act prohibits the operation of online gambling sites, 1). Therefore, the online gambling industry operates abroad, out of U.S. jurisdiction, 1). However, the UIGEA does not prohibit gamblers to take part in online gambling, 3). According to Gambling industry experts, $347 billion is wagered online annually. Legalization of online gambling would allow the industry to operate in the United States, within U.S. jurisdiction, which would generate federal and state tax revenue, 3). Legalization of online poker could mean up to $250 million annually in state taxes for California alone.
B. Online gambling is a source of charity
In wake of the devastating earthquake in Haiti, the online gambling community donated more than 3.5 million dollars to relief efforts. Pokerstars and Full Tilt Poker, the world's 2 largest gambling sites donated $1,500,000 and $659,000, respectively. Members of the online gambling community year in and year out have shown themselves to be among the most generous people around. 10)Most notably, Barry Greenstein, a sponsored Pokerstars professional is dubbed the "Robin Hood of poker". For over a decade, he has donated all of his tournament winnings to various charities. His total donations to date is approximately $8 million, 9).
C. Online gambling creates revenue for credit card companies
7)Online gambling increases profits of credit card companies,7). An estimated $347 billion are wagered online annually; almost all bets are funded by credit cards, 3), 7). Companies like Visa get a piece of the action by charging fees every time their cards are used. These fees are usually charged at the company’s highest, in the form of cash advances,7). However, many companies such as Visa has discontinued service of transactions between U.S. gamblers and gambling institution in response to the passing of UIGEA.
I. Rebuttals
A. More than double of what is gained in tax revenues would have to be paid back through social services
The idea that the gambling industry helps society by generating tax revenue for the states is a fallacy, 4). According to Mr. Grinols, a former senior economic advisor to President Ronald Regan, for every $46 of economic benefits, up to $289 would have to be paid back through social services. The simple truth is, gambling does not generate positive cash flow for the federal or state governments.
B. Gambling takes away from the community and donates a small percentage to charity
6)In 2006, gamblers in the United States lost over $90 billion in gambling, 6).The $3.5 million that the gambling community donated to Haiti relief efforts is laughable compared to $90 billion gamblers took away from the community, 6), 9). Also, it’s important to mention that these are just quantitative measures and doesn’t include the negative qualitative impacts to the community such as depression. That’s what gambling does, it takes away from the community and donates a small percentage back to charity
C. Online gambling creates a risk factor in the credit card industry
While the legalization of online poker may potentially be profitable for credit card companies, it also creates a risk factor due to debts people can’t or aren’t willing to pay back. Gambling debts, even money owed to licensed casinos are not usually legally enforceable,7). Slightly larger problems are charge backs; if a player loses a lot, he can call up the credit card company and claim his card was stolen. Credit card companies have a real fear that they may lose money through these transactions.
Bibliography
1. “Prohibition on funding of unlawful internet gambling”, U.S.C. § 5361–5367, GPO Access, Dec. 23, 2008 [
2. “Suicide Rate Higher in 3 Gambling Cities", Sandra Blakeslee, N.Y. Times, Dec. 16, 1997
3. "Casino group wants to set up Internet poker sites and share revenue with cash strapped state", Patrick McGreevy, L.A. Times, Dec. 13, 2009
4. "SOCIAL COSTS OF GAMBLING NEARLY HALF THAT OF DRUG ABUSE", Mark Reutter, Illinois News Bureau, Mar. 08, 2004
5. "Compulsive Gambling", Department of Human Services Staff, Minnesota DHS, Jan. 07, 2008
[
6. “Consumer spend on U.S. gaming surpassed $90 billion in 2006”, Christiansen Eugene Martin, IGWB, Nov. 01, 2007 -
7. "Why Visa has Dropped Online Gambling", I. Nelson Rose, Casino City Times, Mar. 24, 2003
8. "Gambling and Crime", Chad Hills, Focus on the Family, Jun. 19, 2007 -
9. "PokerStars, Full Tilt Lead the Way as Online Poker Donates Millions to Haiti Relief",
Dan Katz, Poker News Daily, Feb. 03, 2010
10. "Barry Greenstein", Poker News Daily Staff, Poker News Daily, Archived
PROFESSOR MIKE P. McKEEVER
TERM PAPER STYLE GUIDE
Following is a list of common stylistic fixes that will make your paper more convincing
- CITATIONS – Each fact, statistic or quote requires a numerical citation like this example: 5) If you see this number item, your paper does not have enough citations or they are incorrect in style.
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Legalization of online gambling hurts society
City College of San Francisco; Macro Economics
CRN 38777; MWF 2 – 3 PM HC 214
Min S. Chung; W55-55-5555