Gambling is the risking of something of value, typically money, on an activity that involves some element of chance and the potential to realize a profit. It has existed in virtually every society since prerecorded history and continues to be an integral part of local customs and rites of passage. While it may provide an entertaining diversion for most people, for some it can lead to personal ruin and crime.
While most gamblers play responsibly, between 2.5 and 8.5 million U.S adults meet the criteria for a gambling disorder in a given year. These problem gamblers may experience feelings of anxiety, guilt, depression, helplessness, and shame when they are unable to control their gambling behavior. In addition, they often lie to family members, therapists, and others to conceal their involvement with gambling. In some cases, these gamblers have jeopardized or lost a significant relationship, job, educational or career opportunity, or have committed illegal acts such as forgery, fraud, theft, or embezzlement to finance their gambling habits. (American Psychiatric Association 2000).
In addition to the personal and psychological consequences of gambling, it has a serious economic impact on families and communities. Many studies have attempted to quantify the positive economic benefits of gambling, but these studies are typically one-sided and do not consider the negative effects associated with pathological gambling. Those studies that have attempted to balance measurement of both benefits and costs demonstrate a growing trend toward more careful, thorough efforts to estimate the net economic impact of gambling.
Until recently, most bankruptcy court opinions and published news accounts about the effect of gambling on local economies were anecdotal, regional, and based on small sample sizes. One study (Ison 1995a) found that 20 percent of bankruptcy filers had a gambling-related debt and, on average, owed more than $40,000. This figure does not include delinquent mortgages, car loans, or income tax payments. These debts drain local communities of funds that could have been spent on locally available entertainment and recreation. In turn, these strained budgets may lead to cuts in other community services. Moreover, the money that is spent at gambling establishments may be paid to suppliers outside of the community and thus does not benefit the community as a whole. Lastly, a portion of the money spent on gambling may also be paid to owners or investors from other communities, and this money will leak into those communities as well. Consequently, local communities should be cautious about supporting gambling activities. They should seek alternatives to generate revenue for community service needs. Alternatively, they should support responsible gaming initiatives. They should also promote the development of public-private partnerships to reduce problem gambling. Such partnerships should include research and prevention of problem gambling, as well as treatment and rehabilitation. These partnerships should be geared towards specific target groups such as youth, the mentally ill, and families of problem gamblers. In addition, they should include the participation of experts in the fields of social work, law enforcement, and financial services.