GamblingGambling wasn't a problem for Michael Burke until 1994, when a casino opened near his home. It was only then that he became a compulsive gambler, playing more often and losing larger sums of money.

"I stole my children's college funds. I forged my wife's name on a mortgage agreement for $200,000," says Burke.

The addiction drove the attorney to take funds from his clients' escrow accounts. In 2001, he turned himself in to the state attorney general, and was sentenced to serve 3 to 10 years in prison. "Gamblers will do anything they can to get money to gamble. As long as the gambler has a token, the gambler has hope," says Burke, now the author of Never Enough: One Lawyer's Story of How He Gambled His Career Away.

After 25 years of practicing law, he has no savings. "I owe $1.6 million to my victims. The proceeds of my book go to them," says Burke, who speaks around the country on gambling addiction.

A Public Policy That Creates Addicts

When it comes to severity, America's gambling addiction isn't too far behind the nation's drug problem, and it's growing. In 2007, Americans lost more than $92 billion gambling, about nine times what they lost in 1982, and almost 10 times more than what moviegoers in the U.S. spent on tickets that same year, says Sam Skolnik, author of the newly released book High Stakes: The Rising Cost of America's Gambling Addiction, and a poker player who knows firsthand how gambling can lead to financial problems. In 2005, an estimated 73 million Americans patronized one of the country's 1,200 casinos, card rooms or bingo parlors -- 20 million more than just five years earlier, says Skolnik.

What's fueling the rise? Blame it in part on the economy. "In 2009 and 2010, officials in 37 states pushed for new or expanded gambling in order to bring in more revenue," says Skolnik. You might say the states have gotten addicted to gambling as a partial cure for what ails their local economies. "There are unprecedented budget gaps. Legislators think gambling is a painless revenue stream that is better than raising taxes or making tough budget cuts," says Skolnik. Politicians can sleep at night because they use some of the revenues to fund programs to prevent and treat gambling addiction. "Essentially, they're admitting that they know they are creating a class of gamblers who become addicts. If you know what you're doing creates problems, is this appropriate policy?" asks Skolnik.

Though Skolnik doesn't scoff at the jobs that gambling creates, particularly in the current jobless recovery, he argues it's not an economic panacea. The claims that gambling spurs economic development are more hard-sell than truth. There may be some slight invigoration, but it's hardly a mega-stimulus, he says.

Gambling is as old as the nation, but with the proliferation of casinos, lotteries, slots, sports betting, horse racing, video poker machines available in almost every state, as well as Internet gambling -- which David Sack, addiction specialist and CEO of Promises Treatment Centers calls "the crack cocaine of gambling" -- addiction has increased. Forty-three states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands each sponsor heavily promoted lotteries, says Skolnik.

"The key to addiction is proximity: The more access, the greater the problem. In states that have the lottery, casinos, keno in every bar, and charity poker rooms, the problem is greater," says Burke.

Do the Benefits Outweigh the Costs?

But what's touted as good for the economy can be bad for society, and gambling addiction carries a huge price tag. "When the addiction rate increases, so does the cost to society," says Skolnik: Bankruptcies, burglaries and other crimes, spouse abuse, child neglect and abuse, foreclosures and even suicide. It's said that a single bankruptcy directly effects 17 individuals, and gamblers who commit crimes wind up in prison and out of the workforce. The impact of gambling addiction is wide and deep.

The number to place on those costs is the subject of some debate. In his book Gambling in America, Baylor University professor Earl Grinols estimates that addicted gamblers cost the U.S. between $32.4 billion and $53.8 billion a year -- about $274 per adult annually. The National Council on Problem Gambling offers a lower estimate of $6.7 billion per year. But either number is astounding.

The discrepancy is another reason Skolnik says it's vital to increase funding for problem and pathological gambling research, including, perhaps a federal funding source.

Skolnik spotlights Las Vegas, where he lived for five years. "Las Vegas is one of the most dysfunctional communities in America, in part, because of legalized gambling," he says. "There are higher rates of addiction, foreclosures, burglary, than elsewhere. Gambling is available even in Kmart and 7-11. Many communities think they want to be like Las Vegas, but you get a lot of negatives, without much economic development."

Any town that permits gambling is destined to see the creation of an underclass that regularly loses its money to a large corporation, says Harlan Platt, economist and professor of finance at Northeastern University.

Money spent on gambling could be used to bolster Americans' paltry retirement accounts, pay for children's college educations, or shore up emergency savings. Even spending it would help the economy, "People could use that money to buy furniture or a car," says Skolnik.

Gambling addiction doesn't just leave behind financial fiascoes; it also produces fractured relationships. "My cousin and I started a small business in 2003 and grew it to $3.5 million in revenues before his gambling addiction brought it to its knees," says David Winter (not his real name). "He had always enjoyed gambling, but the purchase of a new home in 2006 -- with a much larger mortgage payment -- must have flipped a switch. It wasn't until 2010, that we discovered he had developed an online poker addiction that resulted in almost a million dollars being taken out of the business -- money that was supposed to go towards paying state and local tariffs, the FCC, and the IRS for business and personal taxes."

"If he had just taken the money out legitimately, he would have paid off his house. Instead, he lost more than $330,000 to online and table poker games in Las Vegas and Atlantic City and used the rest to travel, buy electronics, and shop. I ended up taking him to court and haven't spoken to him since," says Winter.

Kristy is so disgusted that she no longer discusses casinos with her senior mother who she says is a gambling addict. "You can't imagine what it's like to follow her around for hours while she stops at ATM after ATM to clean out her checking account, or to find out that she lied to a sibling in order to guilt them into giving her money for some bogus bill," says Kristy. "Hard as it is, when she starts talking about being broke, the most I ever offer is $10 or $20, and then only when she has a doctor's appointment."

Profile of a Gambler?

It's an addiction that cuts across ethnicity, age, socioeconomic status and gender. "Everybody has potential," says Skolnik. Internet gambling can be addictive for teens and college students, who can be impulsive and immature, he says. The elderly can have fewer inhibitions, and some research shows that Asians gamble in significantly higher per capita numbers than the general population.

But Steve Burton, program director of Problem Gamblers Health Network of West Virginia, says some risk factors can make people more susceptible: A previous history of addictions/mental illness; a significant life event like divorce, loss of loved one, job loss; an early big win; a history of child abuse or neglect, or a family history of addictions or mental illness.

It's not like poker is more addicting than slots, or even bingo. "Any type of gambling can be addictive," says Burton.

Facing the Issue Head On

Regardless of the damage it can do, the gambling genie is out the bottle. The question now is, what can we do to reduce that damage?

• Get more help for addicts: "Only 26 states have councils on problem gambling, and even fewer have money available for treatment," says Burton. "Some statistics indicate that as much as 30% of gaming revenues come from 3% of gamblers! This is definitely worrisome."

• Avoid denial: Gambling addiction is often referred to as the silent addiction: Many times, no one knows the individual has an issue. Sometimes that even includes the gambler. "As I always say, no matter how much one gambles, there will never be the smell of it on their breath or redness in the eyes," says Burton.

Medical professionals should screen for gambling addiction. Less than 10% of problem gamblers are diagnosed in a primary care setting, says Burton. Answers to two quick questions provide a clue: Have you ever lied to someone important to you about your gambling and have you felt the need to gamble with more and more amounts of money?

• Rethink policies
: Many people can and do gamble responsibly, and the issue of whether they be denied that outlet to protect those who can't is problematic -- and analogous to similar arguments regarding the legality of tobacco, alcohol, marijuana, etc. -- points out psychiatrist David Reiss of DMR Dynamics.

While there may be valid arguments against the government intervening to "protect autonomous adults from themselves," even stronger arguments can be made that policy makers should not actively support and encourage dysfunctional behaviors, says Dr. Reiss.

"I do not find it problematic that policy makers/governments tax gambling, but I find it problematic that government agencies specifically set up gambling facilities and lotteries purely for profit," says Reiss. "Even more problematic is the hiring of advertising agencies who promote government-sponsored gambling, and who very consciously and intentionally create advertisements that entice people and encourage problematic gambling with promotions that advertise the joy of winning the lottery, when the odds are so infinitesimal than anyone seeing the ad will ever have that experience."

Says Skolnik, "Everyone has to be more aware of the social costs of gambling addiction. People are directly impacted in ways that weren't anticipated. Maybe a gambler occasionally goes to the casino, he or she thinks, 'I'm okay, this is no big deal'. But what about all the other gamblers around you?"




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142 Comments

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JW

Everything is cool as long as the state or local gov. gets a cut. screw them, gamble with anyone that will take a bet, has a table or will give you odds.

August 11 2013 at 3:47 AM Report abuse rate up rate down Reply
dilberth

Jackie: I have 7 chapters written about my travels and certain events pertaining to gambling. The title is similar to the one you mentioned. It's called: "How Gambling Turned My Life Around." It's the account of a drifter unable to exist in the rat race who accidentally stumbles upon a technique to rid casinos of cash. Today, I am an accomplished artist who designs and makes contemporary clocks. I hope to have my first exhibit in August.

July 26 2011 at 6:28 PM Report abuse rate up rate down Reply
Jackie Green

Recently I read a really interesting book about a young man's descent into gambling, it's called "Into the Muck: How poker changed my life." Anyone else check this out yet?

July 26 2011 at 1:14 PM Report abuse rate up rate down Reply
Harry Kuheim

Wow ! News flash...Gambling is for suckers ! Who knew ? Likewise Obama's Welfare / Socialist / Tax and Spend / more Government policies will get you the same thing in the end.

July 26 2011 at 11:24 AM Report abuse rate up rate down Reply
ddilberth

I had that addiction back in 1998. For 7 years, I prowled the casinos of the United States and Canada looking for that magic elixir. I have been to over 230 casinos and usually made money in most of them. It was the most exhilarating and emotionally, the most rewarding time of my life. It was better than sex, and I like sex. Over those years, I guess I have made about 150,000 dollars, and that is a net value. However, all the machines that I made that money on are gone. I no longer go into any casinos because they are a loser's paradise.

July 25 2011 at 10:59 PM Report abuse rate up rate down Reply
majorthomecho

Publishing quality articles like this is why AOL is doing so well. [sarcasm alert]

I love the irony of an article about problem gambling surrounded by ads for the ultimate gamble, the stock market.

Don't believe trading in the stock market is a gamble? If you read the definition of gambling for many states, investing in the stock market fits. So that people aren't breaking the law against illegal gambling, lawmakers exempted trading in stock markets and many other financial transactions.

In the final analysis, it comes down to how much personal freedom we are willing to give up in order to protect our neighbor from himself or herself. Personally, I think people should be able to spend money the way they want.

July 25 2011 at 11:18 AM Report abuse -1 rate up rate down Reply
chris

I have a gambling problem. Should I hit or stay on 15....Just kidding..Enjoy life in moderation.

July 25 2011 at 10:39 AM Report abuse rate up rate down Reply
David Jewel

ROFLMAO, What about all the gambling the a-holes on Wall Street did and got bailed out. Hey I think they should be bailing out all these gamblers. Oh thats right they have to be held responsible but the idiot bankers and what not who what the did was pure greed and gambling we as taxpayers have to bail them out so wheres the article about those gambling addicts, but I guess we have to piss on the little guy playing poker online for fun (I willingly admit some people shouldnt be playing) but hell the states have sponser lotteries whos odds are incredible horrible. I take offense of sombody judging poker players in the same boat as the lottery players and the casino game players because the odds are in the houses/states favor but poker is a game of skill and the odds what little it affects things balance out over the long term in variance (aka standard deviation) so in reality the ability of the player to win or lose isnt rigged but truly based on them to play and Im insulted my country thinks I need to be protected by shutting down online poker. Plenty of people play for fun and taking away even peoples hobby and ability to play is just as stupid as prohibtiion on the 1930s just because a few idiots cant control themselves (and have addictive personaliities should punish others

July 25 2011 at 1:17 AM Report abuse -1 rate up rate down Reply
1 reply to David Jewel's comment
Andrew

This isn't about wall street. Now you're getting into a whole different subject and obviously your bias against wall street is clear. Maybe you are one of the winners in online poker, but 99% of online players are losers. You can definitely win in poker long term, but it's a ZERO SUM game. A large percentage of it goes to the house due to the constant velocity of hands and the money flows to the top 1% of all players. In terms of a cost benefit analysis it's bad for the overall economy, even though it might be good for you. So this isn't about whether or not poker is a game of skill... it's about the affect it has on the overall economy.

July 25 2011 at 11:00 PM Report abuse rate up rate down Reply
denxbi

The compulsive gambler in many cases subconcioulsly wants to lose. In some way, it is cleasing,,,henec the tems, "wiped out, cleaned out, took a bath," etc. I believe compulsive gamblers do what they do based on some guilt that they carry. Their losses are the pennance they pay for their guilt.
This isn't a religous point of view on my part,,,It's the only way I can explain the habitual act of risking money against what we all know are games favoring the house. Sure, at any given time, you can win,, but the compulsive gambler just wants to stay in action. He does know better,, but plays anyway.

July 24 2011 at 10:30 PM Report abuse rate up rate down Reply
Kyle Connell

These whole post is just bs... You need to regulate online poker and make money for usa these is just bs and no facts attached to it that have any truth behind them. Get the facts before you post these trash.

sh

July 24 2011 at 8:39 PM Report abuse -3 rate up rate down Reply
1 reply to Kyle Connell's comment
Andrew

He just posted facts. You're an idiot and obviously a gambling addict.

July 25 2011 at 10:53 PM Report abuse rate up rate down Reply