ILCAAAP News, July 2004, Volume 67, No. 2

SLOTS - A Bad Bet

By Anita Bedell

Slot machines are driving the gambling industry nationwide. While slot machines are sometimes touted as a "harmless revenue stream " for states struggling to balance their budgets, research has found that slot machines and video slots are the most addictive form of gambling.

Slot machines take in an average of more than $1 billion in wagers every day in the United States. These gambling devices require no skill. People do not have to think; they can push a button, "zone out" and escape from reality.

Behavior modification techniques, such as the use of sights, sounds and smells, "near misses," small, intermittent rewards, and speed, are used in the design of the machines to keep people gambling longer. According to "Bet on It," a feature article in The New York Times Magazine, "The slot machine is brilliantly designed from a behavioral psychology perspective... No other form of gambling manipulates the human mind as beautifully as these machines."

"The typical slot player initiates a new game every 6 seconds. That works out to 10 games per minute, 600 per hour. If the average player bets $2 a spin, that player is wagering roughly $1,200 every hour."

Penny and nickel slots are growing in popularity. Gamblers lost half a million dollars last month on Penny Slots at the casinos in Alton and East Peoria. While you can gamble for a penny a spin, the only way to become eligible for the large jackpot is to wager the maximum per spin - approximately $2.50. Nickel machines are big money makers at casinos. You can bet $4.50 on each spin. At that rate it would cost $54 for each minute of play at a nickel slot machine.

Slot clubs and customer loyalty programs reward repeat customers with "comps" such as meals, hotel rooms, and cash to encourage frequent visits. According to Casino Watch, casinos have the world's most efficient and invasive tracking systems. Every eight seconds massive casino databases track:

MGM's database contains the names of over 20 million people. Harrah's database contains the names of over 28 million people (one in every 10 Americans).

Slot machine manufacturers are creating new high-tech slots featuring themes andmusic from popular television shows. These machines feature touch screens, whichspeed up the play and encourage larger bets. The idea is to have "fun" while you lose your money. One slot machine manufacturer even received an award for developing a themed slot machine that has audio-assist features and Braille buttons, thus giving the blind and visually impaired the opportunity to gamble on slots.

Coinless slot machines are being installed at Illinois casinos. When a gambler wins, she receives a ticket that can be cashed in or used as a credit to play another slot machine. These coinless slots increase the speed of gambling and the likelihood that people will stay at the machine and gamble away all of their winnings. Soon casinos will be using ATM machines on slot machines and smart cards that enable gamblers to withdraw money from their bank accounts into the slots to gamble.

In Illinois, 85 percent of the revenue wagered at casinos comes from slot machines. In Iowa, 96 percent of the money wagered at casinos and racetracks was at slot machines. Legalizing more slot machines to help fund state programs is a bad bet.

Join Together, On-line, April, 2004

2004 Alcohol Legislation

We have seen more exemptions to the Illinois Liquor Control Act passed out of House and Senate committees and approved by the Legislature this year than in any one year during the past 10 years. The Illinois Liquor Control Act was crafted to regulate the alcohol industry and to provide safeguards for Illinois citizens. By carving out exemptions, these bills weaken the entire law. The following alcohol bills passed by houses and will be sent to the governor:

HB 742 - Allows the issuance or renewal of a license for a restaurant on the premises owned by the University of Illinois Chicago campus that is not less than 20 feet or more than 40 feet from the worship of a church (current law is 100 feet from the property line of a church).

HB 4031 - Carves out an exemption for and issuing a new license for a liquor establishment within 100 feet of a church if it is separated by an alley.

HB 4055 - Authorizes the sale of alcohol on property owned by a Conservation District, some of which are located in "dry" townships.

HB 6683 - Overrides the vote of the people in "dry" townships by allowing the sale of beer for up to 3 days a year for 3 years for an agriculture event held on private property.

SB 2577 - Special legislation for an exemption to allow a theater owned by a church that is closer than 100 feet of a church to serve alcohol (very specific legislation).

Call the Governor (800-642-3112) to voice your concerns and ask for a VETO.

Congress Calls on NCAA to Ban Alcohol Ads

Three members of Congress introduced House Resolution 575 on March 25. It calls on the National College Athletic Association to ban all alcohol ads during radio and TV Broadcasts of collegiate sports events. The logic is simple and convincing: If universities are committed to discouraging alcohol use among underage students, shouldn’t they voluntarily ban promoting alcohol use through collegiate sports? They cited statistics on the increase in beer ads during basketball tournaments.

HR 575 was introduced by U.S. Representatives Tom Osbourne of Nebraska Frank Wolf of Virginia, and Lucille Roybal-Allard of California. Osborne is the former football coach at Nebraska. Andrew Geiger, athletic director at Ohio State, stated, "It is inconsistent to discourage underage drinking and turn around and huckster the stuff on your broadcast of college sports." Several hundred colleges and universities have pledged to work toward alcohol-free broadcasting of college sports.

California Council on Alcohol Problems, May - June 2004.

Gambling Legislation

The Senate is working on a massive gambling expansion proposal, HB 1067. This legislation would legalize:

The presence of a gambling facility within 50 miles roughtly doubles the prevalence of problem and pathological gambling. Studies have shown that between 30 and 50 percent of casino revenue will come from problem and pathological gamblers.

The cots of gambling are not factored into revenue projections. For every dollar gambling interests indicate is being contributed in taxes, it usually costs taxpayers $2 to $3 in social welfare, criminal justice, and regulatory costs.

Call the governor (800-642-3112) and your state legislators (217-782-2000) to voice your concern.

Alcohol Billboard Removed Near School in Grayslake

An alcohol billboard, about 100 feet from the enterance of Connections Day School, was removed after the Daily Herald newspaper contacted Anheuser-Bush, Inc. about the Bacardi Silver ad. According to the May 6 newspaper article, Connections is a private school for children with learning disabilities and behavior problems. One of the founders of the school attempt to have the billboard removed after students called the advertisement to the attention of the administration and staff.

The brewer said the billboard placement was made in error. According to the Beer Institute's advertising and marketing code, alcohol ads should be at least 500 feet from "conspicuously identified" elementary or secondary schools, places of worship or playgrounds.

Fetal Alcohol Syndrome

By Eric Nagourney

Alcohol use by mothers-to-be can result in Fetal Alcohol Syndrome (FAS), with an estimated cost to society of $3 million per child, according to a new study.

According to researchers, fetal alcohol syndrome, which is associated with a mother’s drinking alcohol during pregnancy, accounts for more birth defects than Down syndrome. About 40,000 children born in the United States each year are identified with FAS.

But since 95 percent of those with FAS go undiagnosed, there are many more affected each year, says lead researcher Dr. Larry Burd, director of the North Dakota Fetal Alcohol Center at the University of North Dakota School of Medicine and Health Sciences.

FAS can cause poor growth of the fetus and infant, decreased mental function, heart defects, abnormal facial appearance and deformity of arms and legs. Other signs include delayed development, low IQ and, in infants, tremors, agitation and crying.

Since there is no safe level of alcohol consumption, any drinking poses a risk for FAS. However, heavy drinking significantly increases the odds.

In their study, Burd’s team reviewed studies that looked at the annual cost and the lifetime cost of caring for FAS patients.

They estimated the annual cost for all those with FAS at about $4 billion, and the lifetime cost for someone with FAS at about $3 million.

"If a state wanted to deposit in a bank enough money to take care of one of these people, they would need to deposit about $932,000, and the interest would pay for lifetime care," Burd says.

These costs include medical treatment, foster care, and residential care due to mental retardation, special education services, incarceration and lost productivity.

By preventing only one case of FAS a state could save almost $360,000 in the first 10 years and over $1 million over 30 years, they note.

Burd believes that all pregnant women should be screened for alcohol use, and should be told to stop drinking. Women, who can’t, need an alcohol treatment program, he says.

Reprinted with permission Monday Morning Report, Vol. 28, No. 9, May 10, 2004

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