Study: Problem gambling costs vary widely

By Liz Benston (contact)

Thursday, Feb. 13, 2003 | 11:02 a.m.

In the first study claiming to pinpoint the social costs of problem gambling in Southern Nevada, a group of researchers at the University of Nevada, Las Vegas estimate that problem gamblers cost the community at least $300 million a year and may even cost as much as $900 million.

The study, which will be presented in academic journals and at upcoming conferences on gambling, examined a cross-section of local residents for two months last year who were participating in Gamblers Anonymous treatment programs.

Social costs include the cost of bankruptcies, thefts, lost productivity at work, unemployment benefits and welfare support that occured as a result of a gambling habit.

Gambling opponents have long argued that the presence of casinos leads to more bankruptcies, thefts, divorces and other social problems. Such arguments have become more heated in recent months as states nationwide consider legalizing more ways to gamble to raise needed tax money.

Casino interests, including the American Gaming Association, have fought such theories with other research that has shown little correlation between such influences.

But study co-author Bill Thompson, a professor of public administration at UNLV, says studies have generally stopped short of defining those costs in actual terms.

"The costs are almost totally ignored in information put out by the (casino) industry," Thompson said.

Thompson oversaw the research along with Keith Schwer, the director of UNLV's Center for Business and Economic Research, and UNLV student Daryl Nakamuro.

Thompson said the research is intended to answer the question of whether the scope of problem justifies funding of treatment programs.

The study isn't aimed at providing ammunition for an upcoming political battle this year to get the state to fund treatment for problem gamblers, he said.

Nevada remains one of few gambling states that doesn't provide any government treatment for problem gambling, instead relying on private funds from casinos and insurance companies to fund coverage.

"It doesn't matter where (the funding) comes from," Thompson said. "But we would like the Legislature to have this information."

Schwer and Thompson paid for the costs of the survey themselves, Thompson said. Nakamuro, who has contacts with Gamblers Anonymous, offered an opportunity to conduct the research, he said.

The results are based on 99 questionnaires of gamblers that were extrapolated on the broader population using recent research on the number of problem gamblers in Nevada, he said.