An interesting Four Corners last night. Here’s the transcript. I worked on gambling issues back in the 90s, and put in a submission to the Productivity Commission inquiry in 1999. Having worked in the field, there are a number of things that everybody knows (including the casinos). Among them:
The bulk of the money comes from a small number of heavy gamblers
A problem gambler is a heavy gambler who’s run out of money
There’s nothing casinos will resist more vigorously than an interruption to play
All of this came out in the program.
On the analysis that I did and also that of the Productivity Commission, it’s pretty clear that some forms of gambling cause more social harm than good, if you apply standard consumer theory to moderate gamblers but assume that heavy/problem gamblers are not getting any benefits from gambling. Pokies and racetrack betting are the worst, lotteries are the best.
One last feature, showing that this blog is still in touch with the zeitgeist was the use of the MRD response “They would say that, wouldn’t they”, in an entirely appropriate context.
John Quiggin 
Being an economic rationalist and with a bent for maths (particularly probability theory) there is no way I will play the pokies. Like the vast majority I’ll invest in a lotto ticket once in a blue moon to indulge in a minimal cost, yet remote chance of becoming a millionaire.
However the question I ask myself is, how can even well educated people get hooked on pokies when they know rationally they will get skinned. I have experienced this with 2 acquaintances. The common trait of both were that they had an almost child-like belief that overrode their rational appreciation of the this probability(or certainty) They seemed to believe they were ‘special’ or ‘chosen’, almost like believing how we are told this by our parents when we are young. It seems to me from my experience of these two serious problem gamblers, they have not grown beyond this belief of a child. The majority of us seem to grow to understand in adulthood that, yes we are each unique, but not special or chosen in any particular way by fate or luck. This seems to me to be the problem gambler’s deficiency.
I noticed the MRD line. It was a very good (and damning) expose.
It was both damning and a captivating peek into the justifications that the industry spout. Bottom line is that people must take responsibility for their own actions so I’m not for banning gambling but still, the claptrap the industry figures mouthed reminded me of those cigarette executives in the USA who all declared under oath that nicotine was not addictive.
Disclosure: Yeah ok I barely gamble myself. A flutter on the Melbourne cup or the odd footy game is enough for me. I tried pokies once and was thoroughly bored by it after less than 5 minutes.
Some people spend all their money on shoes too.