Criticisms of the NYS Lotto

Compulsive Gambling

There is growing evidence that the new games the lotteries have introduced to increase sales are more addictive, and are compounding the problem of compulsive gamblers. Dr. Lance Dodes, Director of the Center for Problem Gambling at Mt. Auburn Hospital in Cambridge Massachusetts, estimates that 40% of his patients are lottery players.43 A 1996 survey in New York found that 9% of lottery players, and 14% of keno players, have been compulsive gamblers at some point in their lives. The study also concluded that keno in particular fosters addiction.44 One study of the effect of VLTs on compulsive gamblers found that the number of individuals in South Dakota seeking treatment for problem gambling declined significantly during a temporary downtime for the lottery's VLTs and rose sharply once they were returned to service.45

This link is widely recognized, even by those in the industry. In the words of one lottery director: "[G]ambling, including playing the lottery, is ... potentially addictive and can be dangerous and destructive for some people, some of the time." 46 The new games "have created what was once an almost unthinkable link between lotteries and compulsive behavior." 47

Despite significant annual revenues from the lottery, however, treatment of compulsive gambling receives relatively little money from the state. In Massachusetts, for example, the state budgeted only $450,000 in FY 1996 on compulsive gamblers, including only $120,000 for actual treatment, even though the lottery revenues for the state amounted to $720 million.48 The Ohio lottery is one of only a few that operates a compulsive gambling treatment operation as part of its regular operations, employing six problem gambling experts. Five states require a telephone number for help for problem gamblers be printed on its lottery tickets.49

Underage Gambling

The sale of lottery games to minors is illegal in every state. However, by all measures, it is commonplace. A survey in Minnesota of 15- to 18-year-olds found that 27% had purchased lottery tickets for themselves.50 Even higher levels of 32%, 34%, and 35% were recorded in Louisiana, Texas, and Connecticut, respectively.51 In Massachusetts, Connecticut, and other states, lottery tickets are available to the general public through self-service vending machines. When one store owner in Boston was asked if minors purchased tickets from the lottery ticket dispenser in his lobby, he replied: "How would I know? No one's watching it." 52 Thus, it is not surprising that a survey conducted by the Massachusetts Attorney General's office found that minors as young as 9 years old were able to purchase lottery tickets on 80% of their attempts, and that 66% of minors were able to place bets on keno games. 75% of Massachusetts high school seniors report having played the lottery.53

Charitable Gambling

The lottery has also apparently had a negative impact on charitable gambling. In 1984, charitable gaming in Massachusetts, such as church bingo, had revenues of $250 million. By 1995, those figures had declined to $200 million. Competition from the lottery is usually blamed, especially following the introduction of keno. "We're getting slaughtered by Keno," said one local rabbi.54

Impact on State Politics

The negative impact on state politics of money connected with the lotteries is often cited by critics, with the commercial suppliers and operators commonly used as examples. GTech and Automated Wagering International (AWI) are the two companies that dominate the lottery supply and lottery operations businesses. In 1997, of the 38 lotteries, GTech had contracts to operate 29; AWI had 7; Massachusetts and Virginia run their own systems. These two companies have contributed heavily to state races. When GTech won the contract to operate the California lottery in 1986, it had been the 6th largest contributor to state campaigns that year, having donated a total of $300,000 to individual state races. In addition, both companies devote substantial sums to lobbying state legislatures and officials. GTech is alleged to have spent $11 million on lobbyists in 1993 alone.55


http://govinfo.library.unt.edu/ngisc/research/lotteries.html

This site addresses all the issues related with gambling throught the NYS lottery