|
Legalized
Gambling
by Jerry "Jet"
Whittaker
June 29, 2006
One of the customary clichés used by proponents of
legalized gambling is that if we institute legal
gambling, we will drive out illegal gambling. This
squabble makes a number of faulty assumptions. Firstly,
it assumes that people are going to gamble anyway; thus,
the state might as well get a piece of the action.
Secondly, it assumes that given the choice, people would
rather gamble in a state-sponsored program as it will be
regulated. The state, the argument goes, will make
certain that the program is fair and that each
participant has an equal chance of winning. Thirdly, it
assumes that if the state enters the gambling arena, it
will drive out illegal gambling because it will be a
more efficient competitor for gamblers' dollars.
Legal arguments
The arguments appear as sound, but they are not.
Although a number of people do gamble illegally, most
citizens do not. Legalized gambling, thus, entices
people to gamble who normally would not gamble at all.
Secondly, legal gambling does not drive out illegal
gambling. If anything, just the opposite is true. As
legalized gambling comes into a state, it endow with
additional momentum for illegal gambling. The Organized
Crime Section of the Department of Justice found that
the rate of illegal gambling in those states which have
a number of legalized forms of gambling was three times
as high as those states where there was not a legalized
form of gambling. And one national review found that
legalized gambling in several states has not been a
competitor to, but rather has become a stimulator of
illegal gambling.
Reasons for growth of illegal gambling
The reasons for the growth of illegal gambling in areas
where legalized
gambling survive are simple. Firstly, organized
crime syndicates often use the free publicity of state
lotteries and pari-mutuel betting to run their own
numbers games. The state essentially saves them money by
providing publicity for events involving gambling.
Secondly, many gamblers would rather bet illegally than
legally. When they work with a bookie, they can bet on
credit and don't have to details their winnings to the
government. These are at least two things they can't do
if they bet on state-sponsored games and this explicate
why illegal gambling thrives in states with legalized
gambling.
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