National Gambling Impact Study Commission

The Role of Government

Reviewing the influence of government on the expansion of legalized gambling, the NGISC report argues that governments—be they local, state, tribal, or federal—have not created a unitary policy on the expansion of legalized gambling. Instead, what exists across each level of government is a series of apparently discrete laws, established independently of one another and without consideration for the overarching repercussions of the policy as a whole. One reason for this lack of a unitary policy is the presence of multiple decision makers. The heterogeneous blend of local, state, tribal, and federal gambling laws has generated a similarly heterogeneous policy. The gambling industry is also heterogeneous, comprising multiple [Page 603]distinct segments, including state lotteries, pari-mutual wagering venues, and casinos, among others. This heterogeneity has also contributed to differences in governmental policies. The NGISC noted that governments often favor policies that maximize immediate public profit, without fully considering the long-term public costs. Considering the heterogeneous state of gambling regulation, in conjunction with legalized gambling's rapid increase and multiple existing knowledge gaps regarding the impact of gambling, the NGISC recommended a pause in gambling expansion.

Individual and Societal Impacts of Gambling

The economic benefits of gambling, such as job creation and increases in tourism, have long been recognized. The subsidizing of state governments through lotteries has become commonplace, with 37 states offering lotteries. However, the individual economic and personal costs of gambling are more difficult to assess. For example, although it is possible in some cases to assign monetary costs to gambling-associated consequences, such as divorce, the overall human cost (e.g., emotional damage, children living in a single-parent household) is difficult to quantify.

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