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Gambling in the Recession
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- gambling can work because it is usually short term for ... - acoz05
- I'm surprised that the recent raffle sold out in ... - trurl9
- Have to admit that I was a bit disappointed in ... - tpohara
Gambling has been called a "recession-proof" industry, but that notion doesn't seem to hold true for the current economic downturn. Though the Oregon Lottery sold out of tickets to their new raffle game, weekly video poker revenue is down 20 percent from this time last year. It's hard to tell how much the loss in revenue has to do with the state's new smoking ban and how much is a result of economic forces. For example, casinos on Native American reservations are exempt from the smoking ban, but have still seen a decrease in visits in Oregon and elsewhere this year.
The drop in gambling revenue affects plenty of people who have never scratched a lottery ticket or tried their luck at the slot machines. A chunk of Oregon's state budget comes from lottery revenues and goes to schools, parks and other programs. Indian casinos give a percentage of their earnings to local charities.
Do you play the lottery or visit casinos in Oregon? Have you changed how often you play or how much you put down? Do you have video poker machines in your business? Have you seen your customers' behavior change lately? Is your job affected by lottery or casino money? How are you planning to make up for the lost funds?
Tagged as: casino · lottery · recession
Photo credit: Bah Humbug /Flickr/ Creative Commons
COMMENTS: (26 total)
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As I replied to Julie's email this morning, my partner and I continue to go to the local casinos, but have noticed smaller crowds. We also bring less money to play and don't stay for nearly as long as we used to.
Megabucks and Powerball tickets are a part of our weekly grocery budget. Maybe some day the correct numbers will hit for us. Maybe not. Either way, it's fun to dream and maybe our "donation" is helping in some small way.
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What percentage of Oregon population plays the lottery?
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Well, we got your question on, if not your name!
David Miller — Tue Feb. 10th 9:33a.m.
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Clearly, gambling drops as the economy goes down. Perhaps instead of putting gambling dollars towards schools, those dollars should be put towards "luxuries". Education is as important as shelter and health care - it is needed whether there is a recession or not. The arts, on the other hand, are more of a luxury. The state could re-allocate funding such that the arts receive a majority of funding from gambling while schools receive funding from more stable sources of the state budget.
Don't get me wrong - I'm an artist, myself. I have nothing against the arts. It should also be noted that during this recession, there has been a marked increase in home crafting to supplement income. The arts will still flourish in a recession, but perhaps in a different form than traditionally expected. A trip to Portland Saturday Market is a testiment to this fact.
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forgot my name: Lisa - Beaverton, OR
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I noticed a billboard on US 30 that delivers a warning to lottery players reminding them that games should not be used as an investment opportunity. It sounds like the state has no money reserves or "back-up" plans to deal with lottery fund shortfalls. Poor investment on the state's part? Or are there potential funds elsewhere?
lucy
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When will the government and tax payers realize that funding for social programs should not come from poor people? Garnering state funding from people who throw their money away, or who quite possibly have a serious addiction is so short-sighted. When will we fairly tax those who wan afford it, namely, the rich, and stop leaching off of those who can't?
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I agree with zeabean. I live in Cascade Locks & the proposed casino scares me to death. Between the poor, elderly & addicted being exploited & the crime that follows casinos I believe we should not only protect our town, but the Columbia River Gorge. Basing a government budget on casinos has resulted in California being in the red. There are many casinos, etc. laying off workers right now. The promises of employment & economical development just do not happen. There is a point where we have to say NO to more gambling & intrusions on our rights.
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Gambling revenues are going down? Pardon me for not crying... I have always believed that the lottery is primarily a poor person's tax. As a teacher, I tell my students that the lottery is a waste of money; that the chance of winning big money is so astronomical they might as well flush their cash down the toilet.
I know that the funds from the lottery are used for some good things, and I am glad for that. I am also glad that other more gullible people are paying for it.
Don, Seaside, Oregon
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Thank Goddess that educators out there are telling students about the idiocy of gambling money in hand against impossible odds. Sure, it's fun to buy millions of dollars' worth of hope for a buck, but some people are so addicted to hope that they jack their grocery fund into the Oregon Lottery or casinos. Their choice; but if they'd had a wise teacher in school days to tell them that it's not a good choice, maybe they would have been inoculated.
James Clavell once wrote that writers are the only ones who can actually change things for the better. He was wrong. Teachers do it every day, and probably a couple of times an hour, multiplied by their number of students. God bless 'em, teachers.
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Had the former mayor and Portland city council had more foresight a new casino would be within the Portland city limits and the city would be employing thousands of construction workers building a new multiuse sports stadium. Not only would this have put Portland in better position to get a sports team, the revenue raised by the taxes on construction, hotel taxes and the funds from the metro casino would have more than offset the lottery losses by now.
I do gamble, and I am grateful for the smoking ban, it allows me to gamble more than I would have in the past. I still trek out to the tribal casinos but the distance makes that a once a month or every two months thing vs. the weekly Powerball and occasional video poker.
One thing I noticed at the tribal casinos is the games have gotten worse for the gambler, as have the new “reel” slot machines in taverns. How much of the drop off can be attributed to the “newness” of the slot machines wearing off and the reality of the horrific pay tables coming into play?
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I just heard the response on air, and I do not believe the math adds up. Straight Jacks or Better isn't even close to full pay, so I am unsure how the Lottery official can make the claim that the odds are better than Vegas. I can still find Full Pay JoB and Dueces Wild in Vegas without looking too hard. I haven't seen those at tribal casinos in nearly 10 years - Chinook Winds had ONE left, a bank of $0.05 FP DW when I was last there in September. Could not find ANY on the floor at Spirit Mountain, found one in the high roller section for $25.00.
As for the slot machines - the payout is likely similar to most of the Strip casinos, would be my guess, slightly better maybe. But the house advantage is always going to be between 5% and 20%. So even if they payout slightly better than Vegas, it is still horrible for the gambler.
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I am saddened by the abstract discussion relating "the smoking ban" solely to a change in state revenue. Is there no acknowledgement of the benefit to large numbers of individuals saved from the toxic environment of smoke and perhaps the benefit of changing behaviors away from sitting in a chair for hours and playing video poker. I am hearing no discussion about the health effects (for better or worse) related to gambling/video poker.
I have to admit, even though my father's hugely valuable state environmental program is largely supported by lottery revenue, I would be thrilled to see the public stop smoking and stop gambling all together. Who cares about the income when one can imagine people changing their lives for the better - spending time outside, with family, exercising . . . think about all the money saved in health care when the public get's healthy, now that's a consciousness shift that could pay big rewards.
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I enjoy visiting Spirit Mountain Casino, Chinook Winds and Three Rivers Casino. Due to gas prices and increase in accommodation costs. We did cut back from going to these 3 casinos.
But, recently I would have to say that Three Rivers Casino has the best offers. First night FREE at their hotel and 2nd night at 50% of regular price! Also their offer of FREE slot play and monetary amount of offer for food is fantastic!
I also have to say that it's really nice of these casinos to give money to Oregon charities, but it is really nice to see casino's like Three Rivers give back to their customers like mentioned above.
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Is that from being on a mailing list?
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I love to go to the casino, but I have been afraid that they have "tightened" the machines to pay out less. The lottery is pretty much set, so I have been buying lottery tickets, but not going to the casinos. Are they reducing their payouts to save money?
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I'm not a big gambler, by any means. But since the economy has tightened up, I don't put my extra dollars towards the occassional slot machine pull anymore. Since I can't see what's in store for the future, and I know a few people that have been laid off, my pennies are being saved.
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I cannot believe that the lottery commisioner said on your program that the "market is maturing"...the games are just less addictive..the lottery industry is yhe only segment that shares information on what works in getting more money from players...why is it that less revenue is blamed on fuel costs,economy,player maturing,smoking ban...are we not just aware that oregonians are tired of the damages of lottery...better odds are just incentive to play more...
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Many areas of the state currently are meeting the common definition of an economic depression.
Is the Gambling industry viable in a Depression?
Is it smart for the state to be relying on a "Voluntary Tax" which is all the State lottery operation is.
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Risk takers? Sorry, not buying it. I have personally taken great risks in my life and know friends and family members (rock and ice climbers for example) who regularly risk their lives navigating the land in physical endeavors who would no more gamble a dollar than they would sell their first born.
The risk taker explanation lacks a whole lot of substance. Hmmm, let's consider addictive personalities, education factors, culture & family of origin . . .
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About Oregon and gambling. It bears notice that Oregon controls liquor consumption and gambling, making money on both. To encourage those activities, many locations also feature 18 year old women dancing nude. Is there a disconnect there?
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I am a little surprised that the attitude on the program, at least as expressed by the gambling industry representative was the preservation of gambling as a necessity. I have always opposed gambling for all the reasons we can think of, not the least of which is that some parents will not provide for their kids adequately due to gambling losses. I would also like to see the division of the proceeds published for all to see, and I have an alternative suggestion.
Let us float an initiative along these lines; when considering traveling to a casino, call some friends instead and go to breakfast, talk to your friends, have a nice time, save gasoline. Much better to spend the time talking to your friends rather than staring at the slot machine. Then calculate how much money you have saved and send half that amount to the college of your choice and keep the other half for yourself. This approaches the needs of the community and personal savings directly, and cuts out the financing of the gambling industry people who should be doing something productive anyway.
Jack White
Albany OR
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Have to admit that I was a bit disappointed in today's show... only in his next to last breath did ANYONE (the economist) you invited offer even a hint of caution about the whole thing. Are you really telling me there are no voices in the community with enough respect to have someone speaking about any downturn in gambling as a GOOD thing because it may mean less folks are doing it? No competent persons addressing the contradiction of raising more revenues/sales of these "products" and trying to help the gambling addicted with call-in numbers printed on stickers?
Usually, TOL is scrupulous about trying to see issues from many sides... I'm afraid you failed to provide anyone but those who want to trick the folks into a voluntary tax. Nothing like offering a pyrrhic hope, the kind that vanishes when they are done scratching today's new printing of the same basic cardboard (insert equally bleak assessment of any of the other "gaming products" as needed to make point).
I know you're not perfect, but please understand: you're only worth supporting again next time around if you are balanced. Please be careful to be so...
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I'm surprised that the recent raffle sold out in 12 days. More surprising is that 250,000 tickets times $10/each is $2.5 million. What's the state or lottery going to do with a measly $1.2 million when Oregon's deficit is billions? I suppose Raffle revenue will keep the Oregon Lottery running in 2009.
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gambling can work because it is usually short term for the players but turns to be long term, such as a years budget for the government. it pays for a lot obviously, but why dont people instead of spending little amounts on gambling save and buy bonds that will help the govt and help themselves down the road?
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Ummm... correct me if I'm wrong, but isn't basing state budget on discretionary spending a wee bit like trying to base children's health care on a smoking tax? Add to that the tiny fact that we then work (rightly, imo) to convince folks that the behaviour is rather self-destructive and it would appear to be a self-defeating premise for our budget. Is it really so different from looking at one’s budget and then not going down and buying a new car this year or taking out a huge mortgage on the hopes that the thing will sell for a big profit next year?
Not a big deal when DOR is raking it in; I mean, who knew? But now we all have to eat more ramen (figuratively, perhaps, for the state), so why does this surprise anyone?