Economic & Social Costs of Gambling:
Un-Funded Mandates
The rate of Pathological Gambling is significantly higher among minorities and lower-income individuals. A recent study conducted at the University at Buffalo's Research Institute on Addictions and funded by the National Institute on Alcohol Abuse and Alcoholism reported the rate of gambling addiction among Caucasians Americans as .5 percent. Among African Americans it was 3.7 percent and for Hispanic Americans it was 4.2 percent. (Journal of Studies of Alcohol, November, 2001)
A survey conducted by the University of Michigan-Dearborn for United Way Community Services and the McGregor Fund found that 4 percent of Detroit Metropolitan residents are estimated to have a current gambling problem and 6.4 percent of adults in Metropolitan Detroit are estimated to have a lifetime history of problem gambling. (Survey of Problem Gambling in the Metropolitan Detroit Area, 200)
Professors Earl Grinols, Univ. of Illinois, Champaign-Urbana and David Mustard, University of Georgia determined the Average cost per pathological gambler is $13,586 annually.* ("Business Profitability versus Social Profitability: Evaluative Industries with Externalities, The Case of Casinos", Managerial and Decision Economics, Vol. 22 Nbr. 1-3, Jan-May, 2001, P. 143-162).
| Illinois Population - 2000 census date (Total = 12,419,293) |
Total | Rate of Gambling Addiction |
Number Addicted | Cost of Gambling Addiction Per Year |
|---|---|---|---|---|
| 15.1% of the population is African American | 1,876,875 | 3.7% | 69,444 | $943,446,184 |
| 12.3% of the population is Hispanic American | 1,530,262 | 4.2% | 68,862 | 935,559,132 |
| Population for the City of Chicago | 2,896,016 | 4.0% | 115,840 | $1,573,810,935 |
*Break down of the average cost to socitey per pathological gambler per year--$13,586
| Crime - Cost for apprehension, adjudication, incarceration, rehabilitation of criminals; police costs for extra police | $3,998 (29%) |
| Business & Employment - Costs of lost productivity, lost time and unemployment; sick days off for gambling, etc. | $3,995 (29%) |
| Abused Dollars - Money obtained from family, friends, and employers under false pretenses | $3,834 (28%) |
| Illness - Treatment costs for gambling related sicknesses--depression, stress, cardiovascular disorders, headaches, etc. | $700 (5%) |
| Social services - Government costs for therapy, unemployment and other social services costs, i.e. welfare, food stamps | $631 (5%) |
| Bankruptcy - Lawsuits, legal costs, and bill collection | $316 (2%) |
| Family costs - Costs related to divorce, separation, spousal abuse and child neglect | $111 (1%) |