In a questionable political move, Missouri Rep. Scott Largent attempts to allow loans at casinos

Casino Watch Focus has reported many times that even though casino gambling is legal in Missouri, the legislature has taken many steps to safeguard its citizens from the dangers of gambling.  The Legislature successfully prevented all legislative attempts at removing a unique safeguard, the $500 loss limit, which essentially caped the amount of money that was able to be gambled and lost at one time.  The loss limit and other safeguards existed until the casino industry waged an expensive ballot initiative that removed it.  One past legislator, who was known for accepting large amount of money from the casino industry and in turn, proposing countless bills to remove these safeguards, was Rep. Shannon Cooper. His replacement, Rep. Scott Largent, appears to have picked up where Rep. Cooper left off.  The St. Louis Post Dispatch is reporting that Rep. Largent has managed to get an amendment into a bill that would allow loans at casinos.  This move appears to be politically unfavorable to his colleagues and it creates serious pitfalls for problem gamblers:

House Financial Institutions Committee added the change onto a banking bill Wednesday with no debate. Committee members endorsed it by a 13-1 vote, sending the measure to the full House after the Rules Committee approves it.

Gamblers who pass a credit check would be able to borrow money and exchange it for electronic tokens and chips for wagering.

Jamilah Nasheed, a St. Louis Democrat, said lawmakers should try to help protect problem gamblers from themselves. Nasheed voted for the bill but now says she would have voted “no” if she had known what the amendment did.

“I made a mistake,” Nasheed said. “I don’t think gamblers should take out loans. You have gamblers who are addicted. It hurts their family. They lose their property. The divorce rate is high.”

Passage in the House would send the bill to the Senate, which has been less inclined to pass gambling bills. In fact, the sponsor of the underlying bill, Sen. Ron Richard, R-Joplin, wasn’t unhappy to learn of the credit amendment.

Casino Gambling was originally passed in 1992 with multiple safeguards in place.  The original plan was to simply allow a short, two-hour riverboat cruise on the Missouri or Mississippi river, which would allow for select and controlled gambling.  Now, virtually every aspect of what Missouri citizens originally voted for has been stripped clean, leaving full-blown casino gambling, on land, with no loss limits.  This bill would remove one of the last safeguards and expose Missouri families to serious gambling problems.  The Post Dispatch continues:

The credit ban was also part of the original law. Under the bill, customers would have to qualify for a line of credit of at least $5,000. Bill proponents say that would weed out those with gambling addictions and others who couldn’t afford to go into debt to gamble. But critics say casinos entice people to wager more than they can afford.  “Any time you make it easier for people who have gambling problems to increase their debt, then you make the problem worse for them,” said Keith Spare of the Missouri Council on Problem Gambling Concerns.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

Florida Mega Resort Casinos to Appear on 2014 Ballot – Voters Beware

Casino Watch Focus reported that the legislation being pushed by the Genting Group and others to legalize mega-resort casinos died in the legislature during this years session. The leadership in Florida was strong and outspoken against expanded gambling.  They were representative of their constituents as well as a voice of economic and social reason.  Now, The Miami Herald is reporting that the casinos will attempt to go circumvent the legislature and go directly before Florida voters:

After failing to persuade the Florida Legislature to pass a bill to open South Florida to mega resort casinos, gambling interests have taken the first steps to bring the issue directly to voters in 2014.

A political committee under the name of “New Jobs and Revenues for Florida” was created April 10 with the purpose of promoting a “statewide constitutional initiative re gaming.

The only group so far that has expressed an interest in conducting a petition drive to bypass lawmakers and go directly to voters is the Genting Group, the Malaysian-based conglomerate that has kept a low profile since a House committee knocked its chances off the legislative agenda in mid-session.

The petition process will take some time and Florida residents can have a big impact in stopping the measure before it gets off the ground.  The group behind this initiative petition will need to gather a significant amount of votes.  The Miami Herald explains:

The petition process requires that the organization get petitions signed by eight percent of the voters in the last presidential election to put the constitutional amendment on the ballot. The proposal must then be approved by 60 percent of the voters.

That’s a heavy lift, especially since statewide polls showed that while support was high for the casino measure in South Florida, there was less than 60 percent support in every other region of the state. Meanwhile, voters have blocked attempts to authorize casino gambling three other times when casino initiatives were on the ballot in 1978, 1986 and in 1994.

The pari-mutuel industry won approval to bring slot machines to eight race tracks, dog tracks and jai alai frontons only after telling voters the new gambling venues would be limited to Miami Dade and Broward.

This is a critical time for people to step up and make their voices heard.  Missouri knows all too well that the casino industry will spend millions of dollars to orchestrate a deceptive and slick campaign offering false promises in exchange for expanded gambling. Once the public is deceived, they will back peddle on their promises, and instead deliver heart-ache and torment to vulnerable Florida families.  However, The Miami Harold points to a group that is steadfast in its opposition:

No Casinos, the anti-gambling group backed by Disney and Miami auto magnate Norman Braman, is ready to oppose the initiative campaign, said John Sowinski, director of the group.

“Our sense is that legislators weren’t fooled by the slick sales pitch and Florida voters won’t be fooled by it either,’’ he said. “If Genting, or whoever this committee is, filed an amendment to expanding gambling in Florida, we will put together a committee to oppose it and our sense is it will be a similar outcome.”     

Please join No Casinos in your opposition to expanded gambling and help end this petition before the industry has an opportunity to deceive the people.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

Online Site Launched to Combat March Madness Gambling at the University level

Casino Watch Focus reported that  as the NCAA Men’s Basketball Tournament runs through the end of March, billions will be lost to gambling.  Even though all age groups are susceptible to the negative effects of gambling, this type of sports gambling is especially popular among university-aged students.  As a result, a new website has been launched to help educated those students about gambling during March Madness.  An online source explains:

As the NCAA college basketball tournament approaches, the National Center for Responsible Gaming (NCRG) is launching a public awareness initiative to encourage college administrators, campus health professionals and students to learn more about college gambling and gambling-related harms. The campaign also helps to educate students who are of legal age about how to make responsible decisions about gambling.

The centerpiece of the campaign is  www.CollegeGambling.org, a science-based resource developed by the NCRG to help colleges and universities address gambling and gambling-related harms on college campuses. The website brings together the latest research and best practices in responsible gaming and the field of addiction awareness and prevention. CollegeGambling.org provides free resources for university administrators, campus health professionals, students and parents to help address this issue in the way best suited to the needs of each campus.

The National Center for Responsible Gambling has said that 75% of university students had gambled in the last year.  They go on to say that one in five have been involved in sports gambling.  Not all the gambling is legal, especially considering the age of most college students is below the legal age and the shear amount of illegal sports bookies.  Many are able to avoid the pitfalls of this type of gambling, but for those that don’t, there can be major consequences.  The online source continues:

“While a majority of those old enough to legally gamble can do so responsibly, research estimates that 6 percent of U.S. college students have some form of gambling problem that can result in psychological difficulties, unmanageable debt and failing grades,” said Christine Reilly, senior research director of the NCRG. “For those who are not of legal age to gamble, there is no level of responsible gambling.”

CollegeGambling.org provides collateral materials about college gambling and responsible gaming, such as brochures, fact sheets, posters and toolkits. The website also houses customizable presentations that university counselors, peer educators and student leaders can use during their educational programming opportunities.  The website materials are available as free downloads.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

Billions to be lost in gambling & work productivity as the First Four passes and we enter NCAA March Madness

Selection Sunday has passed and the First Four are in the books.  As the country gears up for another year of March Madness its important to understand the impact that office pools have on employers and the communities. Obviously, not all office pools will result in gambling, however, a vast majority do involve illegal gambling. A USAtody article points to reports of online pools that take an entry fee and award cash and prizes. These pools may seem harmless but FBI spokesman Ross Rice explained that,‘“There could be a violation if there’s a payout and if the operators take a cut.” So how many people will engage in office pools this time of year and how will it impact work productivity? The St Louis post dispatch provides some good insight:

Nearly half of U.S. workers have participated in an office pool, and nearly a quarter have watched or followed sports events on their computer at work, according to a recent survey. 10 percent of employees have called in sick to watch or attend a game. 11 percent of workers aged 18 to 24 have participated in an office pool, compared to 77 percent of those 65 and older.

Very few employers offer guidance in their policies regarding office pools, even though it may mean taking a hit in terms of productivity, said John Heins, chief human resources officer for recruiting and staffing company Spherion Corp.

In terms of cost to employers, the Charlotte Observer points to a Chicago-based survey which says as much as $1.7 billion will be lost by employers in productivity, which breaks down to $109 million lost for every 10 minutes spent following the tournament. They believe there will be over 37 million workers participating in pools with 1.5 million watching games and results online from their desks.

The Charlotte Observer went on to quantify the financial impact of just the gambling.  On the low estimates they point to Terry Elman, acting executive director of the Council on Compulsive Gambling in New Jersey, who said “As much as $750 million is wagered on the tournament in office pools each year.”  On the high end, Lazer wager, an online sports, casino and entertainment gambling website, was reported claiming that, “with bracket pools ranging from $5 to $25 per person, office pools are now worth an incredible $2.5 billion.”

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

Super Bowl XLVI – how much gambling are we talking about?

Super Bowl XLVI brings about lots of excitement with the electricity of stats, facts, and the epic rematch of 2008′s Eli Manning’s Giants and Tom Brady’s Patriots.  Millions of people will engage in this social event and spend time at parties across the country.  However, Super Bowl Sunday is also one of the largest social gambling events in the nation. The Morning Sentinel points to the 2007 Super Bowl as having an estimated $8 billion in wagers placed on its outcome. This flashy, center-stage event brings out several “social” gamblers, some of whom consider placing little bets here and there harmless. The article explains that experts have information to the contrary.

Guy Cousins, acting director of Maine Office of Substance Abuse, is referenced as estimating that 3 to 5 percent of those who participate in wagering will become problem gamblers. Another expert mentioned, Lee Thompson, president of the Maine Council on Problem Gambling explained, “We’ve seen an increase in the calls from Maine to the Nation Council on Problem Gambling hotline, from eight calls a month in 2003 to over 100 a month in 2006.”

It appears that the glitzy glam of the Super Bowl attracts people to make social wagers, a harmless bit of fun in their mind. But the dollar amount waged on the Super Bowl climbs each year, as does the number of problem gamblers. The Super Bowl garners over three times the amount wagered on NCAA basketball’s March Madness.

Is this a harmless Sunday addition to one of America’s most popular day of sports? The numbers show it only to be a growing problem.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

Obama Administration Ruling Allows Online Gambling

Casino Watch Focus reported that several states have been attempting to legalize online gambling in their own jurisdiction.  Even though many states were attempting to legalize such intrastate gambling, it was generally understood that a long legal battle would develop.  The current online gambling landscape is largely governed by the Unlawful Internet Gambling Enforcement Act (UGEIA).  It regulates interstate and intrastate gambling at the financial level.  Given the almost impossible nature of regulating the internet, UGEIA looked to enforce the issue by going after the financial institutions where the gambling money would trade hands.

The basis for UGEIA is the 1961 Wire Act, which prohibits gambling over telecommunications systems.  This act effectively prohibited almost all online gambling, on both an inter and intrastate level.  Now, The Christian Science Monitor is explaining that a common Justice Department ruling on the Wire Act has been reversed by the Obama Administration, allowing for at least intrastate gambling and possibly even gambling between states:

Until now, the Justice Department had held that the Wire Act makes even intrastate online gambling illegal. Its new interpretation, written by Justice Department attorneys in response to requests for clarification from New York and Illinois, concluded that the law instead specifically outlaws such wagering on sports, not nonsports gambling within states or even across state borders.

“The ordinary meaning of the phrase ‘sporting event or contest’ does not encompass lotteries,” wrote Assistant Attorney General Virginia Seitz. “Accordingly, we conclude that the proposed lotteries are not within the prohibitions of the Wire Act.”

“The United States Department of Justice has given the online gaming community a big, big present,” writes I. Nelson Rose, a Whittier Law School professor who blogs at gamblingandthelaw.com. “My bet is that … Congress will continue to do nothing, while Internet gambling explodes across the nation, made legal under state laws.”

While the Justice Department ruling does not specifically address interstate gambling, legal experts say it’s likely to be allowed, at least between states that specifically regulate online gambling.

There are a multitude of concerns with the actions of the Obama Administration’s new ruling.  In an Op-Ed piece by the Christian Science Monitor, they argue that such actions amount to a tax on the poor and that the regulation issues will be too severe to offer anything other than potential harms to children and families:

[B]ig doubts remain over whether states can indeed restrain such digital games of chance to residents while also keeping children from playing them. State lotteries, for examples, have a poor record of preventing retailers from selling tickets to minors.

And even if states can outsmart tech-savvy teens or out-of-state gamblers, once enough states jump into Internet gambling they will likely be able to work together and create a national scheme for such activity. That would violate the spirit if not the letter of a 2006 federal law banning such interstate activity.

Most of all, bringing Internet gambling to America would hurt the poor, who are most affected when people lose money in government-approved games of chance such as state lotteries or casinos – not to mention the way it would reinforce a belief that one’s future depends on “luck” instead of individual merit.

In effect, President Obama and his appointed Justice officials have bowed to political pressure from states that seek a new source of revenue in Internet gambling rather than taking the difficult decisions to raise taxes or cut spending.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

Top Florida Cabinet Members Join in Opposition of Proposed Destination-Casinos

Casino Watch Focus reported that a diverse group of individuals and groups were standing strong in their opposition to the Destination Casinos bill introduced by  Senator Ellyn Bogandoff.  The more mainstream groups that oppose expanded gambling include Disney, The Florida Chamber of Commerce, The Florida Hotel and Lodging Association, and The Florida Attractions Association.

Joining them is a coalition anti-gambling groups such as the No Casino, the Florida Baptist Convention, the Florida Catholic Conference, Florida Casino Watch and Florida Family Action.  The Florida Council on Compulsive Gambling not only provided the statistics for current gambling issues, but they also went as far as to say that the state’s policymakers shouldn’t expand  gambling until it gets its house in order.  If that collective opposition wasn’t representative enough of those in Florida, now all three of the Florida Cabinet members have come out against these Vegas-style destination casinos.  The Palm Beach Post reports:

Attorney General Pam Bondi and Florida Agriculture Commissioner Adam Putnam joined forces Thursday with a coalition of law enforcement officers, social conservatives and business lobbyists determined to kill a proposal to allow three more casinos in Florida.

The pair are the state’s highest-ranking GOP officials to publicly oppose the “destination resorts” bill now working its way through the state legislature. A spokeswoman for Chief Financial Officer Jeff Atwater, the third member of the Florida Cabinet and also a Republican, said later that he opposes the measure, too.

That leaves Gov. Rick Scott as the only executive wild card. Scott has not taken a firm stance on the measures (SB 710, HB 487), although he has repeatedly said he does not want the state to become dependent on revenues generated by the casinos. He also has said he doesn’t want a casino going into a county unless voters there approve first.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

Facebook to Test Real-Money Online Gambling in UK; the Lure of Children Amongst Real-Fears

Casino Watch Focus originally reported that Facebook banned online advertisements in the United States and other jurisdictions where online gambling is illegal.  Where as it might appear Facebook was taking a hard line stance against gambling, new reports may prove otherwise.  Currently, Facebook uses a virtual money system for several of their games/apps.  A user can purchase credits that can then be used in the virtual setting for the purchase of games or items from various developers.  The online Tech Site ZDNet, reported that Facebook is now considering replacing their virtual money system with real money. The move is designed to open the doors to full scale online gambling on Facebook.  ZDNet explains:

Facebook already offers a virtual currency option known as Facebook Credits, which is used extensively in Facebook apps like social games, but the social networking giant is also reportedly interested in supporting the exchange of real money in the online gambling market. The company wants to open up the Facebook Platform to online gambling, possibly as soon as in Q1 2012. This past summer, Palo Alto held exploratory talks with approximately 20 online gaming experts, consultants, and social gaming entrepreneurs, and now it’s moving forward.

More specifically, Facebook is looking at handing out eight licenses, two per vertical, to the online gambling operators in regulated markets such as the UK, according to EGR. The company has drawn up initial licenses for different gambling operators: Gamesys, which has some 1.7 million monthly Facebook users and 888 are reportedly first in line. You read that right: gambling apps could soon start appearing on the Facebook Platform.

Its worth noting that Facebook is only looking to begin testing in the UK and if they find success, then they would  likely branch out to other countries where its legal to gamble online (which would currently exclude the United States).  As one could imagine, Facebook’s actions are drawing the ire of those in the UK concerned with the most vulnerable – their children.  The UK Daily Mail explains:

Facebook is being accused of luring children into gambling through plans to introduce real cash games. The world’s biggest social network site wants to use Britain as a testing ground for games that would let users gamble on virtual fruit machines, bingo, poker and roulette. Last night  critics expressed fears that the proposals will create a generation who believe that gambling is safe and fun.

More than 3million Facebook users in the UK are aged between 13 and 17. A further million are estimated to be under 13 but pretending to be older.  Dr Robert Lefever, founding director of the Promis Recovery Centre which treats addicts, said: ‘Introducing gambling to Facebook is a cynical way for the gambling industry to find new markets, making gambling look acceptable. ‘There will be young people who think these games have Facebook approval, that you can gamble and it’s fun. It’s not – gambling destroys families.’

Lauri Moyle, of Christian Action Research Education (CARE), said: ‘Because there is a link between the age when people start gambling and the likelihood of developing a difficulty controlling their gambling, protecting children from the normalisation of gambling is vital.’

Professor Mark Griffiths, of Nottingham Trent University, added: ‘Even when no money changes hands, young children are learning the mechanics of gambling. These games can be a gateway to more serious gambling.’

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

Florida Gambling Council Points to Dangers of Expanded Gambling

Casino Watch Focus has been reporting on the ongoing gambling expansion debate that has consumed the Florida political and financial landscape.  As lawmakers continue to focus on the politics and financial gains or pitfalls, the Florida Gambling Council is providing prospective on the real danger to Florida families.  An online source explains:

Throwing some cold water on casino fever, the Florida Council on Compulsive Gambling says the state isn’t addressing the addiction problems it has now.

“It is not responsible policymaking to even consider expansion without taking steps to mitigate the current issues,” FCCG executive director Pat Fowler told Sunshine State News.

Fowler said the state needs to get its own house in order first.

“We already have a quarter-million people with [gambling-addiction] problems. But the state has decided not to do anything to mitigate that problem,” she said.

The Council has been vocal about the lack of resources they have been given to combat Florida’s gambling related problems.  This year alone the Council “received just $264,000 for the current fiscal year — barely a third of the compulsive-gambling fees paid to the state by Broward and Miami-Dade slot operators.” The gambling related problems in Florida have been getting worse.  The Sunshine State News reports the Councils findings:

Meantime, FCCG painted a grim picture of gambling-related problems already extant in Florida:

According to problems reported by HelpLine callers in the past year:

Crime: 35 percent reported they resorted to committing illegal acts to finance their gambling.

Unemployed/Public Assistance: 25 percent reported they were unemployed and/or collecting state assistance.

Suicide: Those reporting having suicidal ideation or attempts rose significantly from 11 percent to 16 percent of callers.

Primary Gambling Problem: The most frequently cited primary gambling problem was slots, 46 percent; cards, 33 percent; and lottery, 11 percent.   

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

Penny Auction site faces class action lawsuit

Earlier this year, Casino Watch Focus reported on the dangers of a new type of gambling known as Penny Auctions. These sites have consumers bid on high dollar items until time runs out and the person who placed the last bid wins.  It sounds like a normal eBay-type auction except there’s a catch, a very costly and potentially dangerous catch.  Each bid placed costs money, typically between 50 cents and two dollars depending on the site.  So unlike eBay where the losers of the auction simply lose out on the product, each and every person who places a bid is at risk of losing their money. The psychology of Penny Auctions functions the same as the lottery or slot machines, put in a little in hopes of winning a lot.  People will also chase after an auction because they have invested money and don’t want to lose it, just like they do with slot machines or with a poker hand.  Penny Auctions are simply gambling at the core and the consequences can be just as addictive and devastating.  Now, an online source is reporting that a class action lawsuit has been filed against one of these penny auction websites:

QuiBids.com claims that users of their website will pay 80-95% less than retail prices for consumer products the likes of HDTVs, laptops, automobiles, you name it.  Of course there is a catch. A class action lawsuit filed in the U.S. District Court for the Western District of Oklahoma claims that virtually none of the consumers who participate in these “auctions” will win the right to purchase such high-end item products at those greatly reduced prices.  In such cases, the consumers lose whatever money they bid during the auction.  The suit alleges that the failure to win auctions is costly to QuiBids customers. Some have even suggested that the QuiBids.com website is nothing more than legalized online gambling.

“In reality, they are just taking people’s money and giving them nothing in return,” Roger Mandel, attorney for the Class, said. “If they want to operate their business like a lottery, then they need to tell people the truth about their chances of winning — which are slim to none,” said Mandel.

Time will tell if this lawsuit has any affect, but if history is any indication in cases like these, its doubtful the courts will step in.  Hopefully, this case will at least raise much needed awareness on the dangers.  Please share this information (see below) with those you know and especially those who mention they participate on these sites. You may help prevent a gambling addiction that can tear a life or family apart.  For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Florida Governor responds to calls to veto $400,000 pro-gambling study but remains politically ambivalent on the casino debate

Casino Watch Focus reported that the Florida legislature cut $400,000 from programs designed to help those with compulsive gambling issues, while also approving a new $400,000 gambling study.  The seeming intent of the study was to focus on the financial gains of new destination casinos, while ignoring the devastation and negative consequences of gambling. Immediately following the approval of the budget, groups started asking Governor Scott to veto the budget. One online source explained how one sided the study would be:

Gov. Rick Scott should reject a $400,000 gambling study in the 2011-2012 state budget and restore funding cuts to programs that help those harmed by gambling, Florida Baptist Convention legislative consultant Bill Bunkley urged in a May 19 letter. “In this critical and tight budgetary year when many fellow Floridians are unemployed and struggling to provide some of the basics of life, it is not the time to promote and subsidize the rich, deep-pocketed interests of the large-scale, Las Vegas casino enterprises or the horse racing industry,” Bunkley wrote. The study will not be “balanced,” he added, because it fails to require exploration of the “huge social costs the state will without a doubt” incur due to expanded gambling.  If there is to be a potentially pro-gambling study, it should be underwritten by the gambling industry, not taxpayers, Bunkley said.

 As the Sun Sentinel explains, The Florida Baptist Convention represents almost 3,000 churches and has more than 1 million members.  They represent a fairly strong republican voting base that the Governor couldn’t easily ignore.  As a result, an online Tampa news source is reporting that Gov Scott has vetoed the study.  As has become common on the gambling issue since his election, the Governor issued a statement that seeks political balance, not a firm position:

“I am vetoing $400,000 for a gambling study. While I encourage the Legislature to make a comprehensive review of additional gaming, I believe it is important to have a full consideration of the positive economic impact, the costs that may result from this policy, and the impact on current gaming in our state. However, such a study at this time is an expense Florida taxpayers should not incur.”

It is unclear as to the possibility of refunding the $400,000 cut from Compulsive Gambling Programs.  Keep checking for updated and for more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

ESPN exposes terrible Florida Youth Football Gambling Ring

Casino Watch Focus has reported numerous times on the NFL’s anti-gambling position.  The organization doesn’t like gambling on its sport because they know from other sports the propensity for corruption, game fixing and the devastating trail that can be left behind in gambling’s wake.  So imagine how shocking it was when ESPN’s Outside the Lines recently broke a story about the real life consequences of a football gambling ring.  Unfortunately, as the Baltimore Sports Report explains, this story has nothing to do with the NFL:

A recent story was featured on ESPN’s “Outside the Lines” involving the problem of gambling in the South Florida Youth Football League.  That’s right, I said the YOUTH football league.  Apparently, people have been gambling on games in this particular league for several years now, but it has never been addressed publicly until OTL decided to conduct an investigation into the situation.

During the investigation, OTL found that on several occasions men were openly betting and exchanging large wads of cash during football games.  But after further scrutiny, OTL found that the money being exchanged in the stands was minimal compared to the tens of thousands of dollars changing hands behind closed doors. They even found out that kids were being paid large amounts of money for making big plays.  But it didn’t stop there.  These men, most of which are drug dealers, found out which kids were the best and recruit them to play for a certain team before the season began by paying off their parents before the start of the season.  They would then bet on the team they essentially built and profit off it.  

There is so much wrong with the previous couple paragraphs that I almost don’t even know where to start.  First of all, the men gambling on these games are the absolute scum of the earth.  There’s no other way to put it.  They have no consideration for anyone but themselves and are ruining people’s lives in the process.  They are taking advantage of parents who don’t make a lot of money and bribing them with cash in order to profit from it.  They are tainting a game that kids love to play.  They are putting innocent people’s lives at risk due to their ignorant and insensitive way of life, and something needs to be done about it.

There are so many victims that it’s hard to even find a starting point.  From the parents & children to the newly financed drug dealers who manage to build their destructive empires on the profits of gambling.  There is no way to adequately summarize what has been exposed. To truly understand the extent of this devastation, PLEASE visit ESPN’s original story by Outsides the Lines HERE.

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Update: Compulsive gambling programs slashed to pay for Gambling Study

Casino Watch Focus reported that the Florida Legislature secured $400,000 to commission a new gambling study.  This is a common step in the pro-gambling playbook.  The studies tend to only highlight the potential income from a gambling destination, while ignoring all the negative consequences.  However, the Orlando Sentinel is now reporting exactly where that money is coming from:

The annual budget for the Florida Council on Compulsive Gambling is being cut by about $400,000 — which also happens to be the amount the Legislature is appropriating to study the profitability of destination casinos and horse racing in the state.

“The Florida Legislature has made its priorities crystal clear, which is a sad day for the residents of this state,” said council Executive Director Pat Fowler.

This news is exceptionally troubling considering the more gambling expansion in an area, the more compulsive gambling problems increase.  The last thing Florida’s citizens need to see is an increase in gambling venues, an increase in problem and compulsive gambling and a DECREASE in those programs designed to help families cope with the devastation gambling brings.  The Orlando Sentinel continues:

Said council President Paul Ashe: “Research has definitively concluded, in Florida and elsewhere, that along with gambling expansion is increased prevalence for compulsive gambling. The correlation is very clear and is not disputable.

“It doesn’t take a mental giant to recognize that any expansion of gambling to resort areas will generate increased revenues to the state. The question is at what cost? I am quite confident the gambling industry would be delighted to fund an independent study at their expense, if they have a chance to expand gambling in the state.”

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Florida Budget to include $400,000 for a gambling study to “justify” future gambling expansion

Casino Watch Focus has been reporting on the ongoing battle to introduce 5 destination gambling resorts to Florida through the legislature.  Clearly, each attempt has failed this year, so the pro-gambling force is already focused on next years efforts.  A classic step in the evolution of gambling expansion is for the interested party to commission a gambling study.  These studies are hardly ever free of bias and seem to always show exactly what the group paying for the study wants them to say. They seem to always conveniently leave out the negative effects of gambling, including the direct negative economic impacts, and instead simply shows how much money can be made at each gambling facility.  An online source is now reporting that pro-gambling interests in Florida have managed to secure $400,000 for a new gambling study and at least one House sponsor is making no secret about the study’s direction:

Florida legislators are inking their budget deal today that includes cuts to public schools, nursing homes, hospitals and county public health departments but they have found $400,000 for a gaming study of the “revenues derived, the expenses incurred and the potential benefit for Florida from destination resorts and horse racing.”

House sponsor, Rep. Erik Fresen, said he hopes the study will help pave the way for a bill next year. “We hope a $400,000 study will result in the impetus I need to pass this that will result in tens of thousands of dollars to the state in the future,” said Fresen, R-Miami.      

Pat Fowler, the director of the Florida Council on Compulsive Gambling, spoke out against the measure, saying the study “will ultimately be used as the future justification for expanding gambling through Florida.  The roadmap is very clear.”

For more information on the dangers of gambling, please visit CASINO WATCH, & CASINO WATCH FOUNDATION

Penny Auctions Sites: the New Online Gambling Risk?

Many websites are advertising incredible and unbelievable deals on expensive products such as High-definition Televisions, Apple iPads, GPS’ and even high-dollar gift cards at a fraction of their cost.  Known as Penny Auctions, these sites have consumers bid on these items until the time runs out and the person who placed the last bid wins.  It sounds like normal eBay-type auction sites, so how do  they work or differ?  The Delaware News Journal explains the process:

The auction is announced on the website. Typically, hundreds or even thousands of auctions are held simultaneously. The terms of the auction are detailed, for example, a six-hour auction with each bid adding 1 cent to the price. Each additional bid made in the last 20 seconds of the auction resets the clock to 20 seconds remaining. Bidding often is slow until the waning minutes. With 20 seconds to go, the top bid might be only $1 or $2. But every time the clock nears zero, another bidder ups the price by a penny. Finally, only one bidder remains, and he or she wins the iPad, which has a list price of $500, for whatever the final tally is, maybe $25.

This process seems harmless enough, but how can the company make any money selling a $500 retail item such as an iPad and still make money?  There’s a catch, a very costly and potentially dangerous catch.  Each bid placed costs money, typically between 50 cents and two dollars depending on the site.  So unlike eBay where the losers of the auction simply lose out on the product, each and every person who places a bid is at risk of losing their money. The News Journal further explains the iPad example:

Since every bid costs 50 cents, and it took 2,500 bids to reach $25, the auction site takes in $1,275 ($1,250 in bids plus the $25 winning bid). Assuming the site paid full retail price for the iPad, it makes a $775 profit.  The winning bidder gets the iPad for $25 plus the cost of the bids he or she made and shipping. The other bidders, some of whom may have spent $100 or more on bids, walk away empty-handed.

But even the winner might not come out ahead of the game, advocates suggest. Say the winner bid $25 and used $50 in bids. At $75 for a $500 iPad, that still seems like a good deal. But that doesn’t take into account all the money in bids the winner spent in auctions he or she didn’t win. Add that in, and the deal might not be so good. In fact, it could mean that he or she spent more than the retail cost of the iPad. “It is just a gimmick. They get you caught up in it. It is like gambling.”

The psychology of Penny Auctions functions the same as the lottery or slot machines, put in a little to win a lot.  People will also chase after an auction because they have invested money and don’t want to lose it, just like they do with slot machines or with a poker hand.  Penny Auctions are simply gambling at the core and the consequences can be just as addictive and devastating.  These sites have been called gambling sites disguised to look like a typical auction, the dangers are just as real, and this might be just the beginning of a new potential gambling risk:

In November, an Oregon man filed a federal lawsuit alleging that one of the largest auction sites, Quibids.com, was really a gambling site masquerading as an auction site. The suit seeks class-action status and asks for damages for everybody who lost money at the site.

Brian Kongszik, help-line director for the Florida Council on Compulsive Gambling, said penny auctions really are thinly disguised gambling sites. “They are risking something in an event of uncertain outcomes, which is gambling,” he said. Kongszik said the council had only had a few calls from people seeking help because of penny auctions. Still, he said, he could definitely see the attraction for problem gamblers. “I can see people losing a significant amount of money on these and getting caught up in it, in the rush. It is a rush.”

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