Mr. Speaker, I have long been opposed to any expansion of legalized gambling and have continually sought to raise awareness of the dangerous economic and social costs of gambling. That is why I want to submit for the Record a statement I…
Mr. Speaker, I have long been opposed to any expansion of legalized gambling and have continually sought to raise awareness of the dangerous economic and social costs of gambling. That is why I want to submit for the Record a statement I received from one of the foremost experts on the dangers of gambling, Tom Grey, and the director of Stop Predatory Gambling, Les Bernal.
Statement by Les Bernal, National Director, Stop Predatory Gambling and
Tom Grey, Senior Advisor to Stop Predatory Gambling
Today, we would seek to speak for the ``losers.'' The
``losers'' are those citizens sacrificed by our government in
its failed experiment of sponsoring and promoting gambling to
extract as much money as possible from the public. ``Losers''
isn't a term we coined. That's the word used by a slot
machine designer at America's biggest maker of electronic
slot machines, International Gaming Technology (IGT), to
describe the citizens who use the machines he makes, many of
whom are your constituents. ``When I asked one I.G.T. artist
if he ever plays, he acted as if I had insulted him,'' wrote
New York Times reporter Gary Rivlin in his cover story on
slot machines for The Times Sunday Magazine. ``Slots are for
losers,'' he spat, and then, coming to his senses, begged me
to consider that an off-the-record comment.''
Scott Stevens of Steubenville, Ohio was one of these
``losers'' who we speak for today. Yet Scott Stevens was a
success by nearly every measure we use in America. Through
hard work and sacrifice, Scott became a very successful
business executive, earning an upper-middle class income. He
was happily married with three daughters and actively served
his community in a variety of different volunteer leadership
roles.
But the lives of Scott Stevens and his family changed
forever when they intersected with a government program
unlike any other. It is a government program that exists to
extract as much money as possible from citizens to fund
government itself. This program has been called ``government-
sponsored gambling'' but a growing number of Americans in the
public square today call it more accurately as ``predatory
gambling.''
Predatory gambling is when government uses gambling in the
form of casinos and lotteries to cheat and exploit citizens.
For-profit gambling is illegal unless the government gives
its full support, and in nearly every instance operates in
partnership with gambling interests whether in the form of
state lotteries, commercial casinos or tribal casinos. Scott
Stevens knew firsthand about predatory gambling.
Today, the electronic gambling machine has become
government's preferred method of extracting money from
citizens. Slots make up to 80% of gambling profits. These
gambling machines are literally designed so citizens cannot
stop using them, exploiting aspects of human psychology and
inducing irrational and irresponsible behavior. Every feature
of a slot machine--its mathematical structure, visual
graphics, sound dynamics, seating and screen ergonomics--is
designed to increase a player's ``time on device''--which
means how long a person plays.
Gambling operators found that their profits were not about
the size of the gamblers' stakes but rather the volume of
their play. ``If you provide them with the right time-on-
device, they will stay and play,'' one slot designer said to
MIT Professor Dr. Natasha Schull in her recent book on slot
machine technology titled Addiction By Design. ``If you take
it too quickly and they lose, they're going to leave.'' In
the actual language of the casino business, the goal is to
get every user ``to play to extinction''--until all their
money is gone, Dr. Schull quotes a slot marketing expert. ``I
want to keep you there as long as humanly possible,'' another
slot operator told her. ``That's the whole trick, that's what
makes you lose.''
The slot machine is designed to be so effective at
extracting money from people, wrote Dr. Schull, that it is
``a product that, for all intents and purposes, approaches
every player as a potential addict--in other words, someone
who won't stop playing until his or her means are depleted.''
Scott Stevens was one of the ``losers'' who used a slot
machine. He became someone who used the slot machine the way
its maker and promoter intended: he could not stop using it.
Aggressively marketed to the public as ``fun'' and actively
promoted by public officials, why would Scott ever possess
any concerns about using a modern slot machine?
Citizens like Scott Stevens who use slot machines as
intended are the most lucrative ``losers'' of all for
government and the gambling operators it partners with. Over
the last decade there are 11 different independent studies--
studies not funded by gambling interests--that show 40
percent-60 percent of slot machine profits are taken from
citizens like Scott Stevens. Citizens who have been turned
into gambling addicts.
In America today, at least 10 million citizens are gambling
addicts; citizens who have become addicted to what is,
literally, a government program. We call these millions of
citizens who have ruined their lives and painfully wounded
their families so our government can extract more money,
``The Expendable Americans.''
Scott Stevens was an Expendable American. He lost his job
because he took company money and poured it into slot
machines sponsored by the government. He maxed out his credit
cards to tens of thousands of dollars. He emptied his
daughters' college savings accounts and his 401k retirement
funds. He owed huge debts to the IRS for not paying taxes on
what government labeled his ``winnings,'' despite losing far
greater money than he won.
On August 13, 2012, even though he had already given almost
everything he had to this public policy, Scott Stevens made
one last sacrifice. He drove to a children's soccer park in
his town that he raised money to build. He sat down on a park
bench. He called 911 on his cell phone and told them what he
was planning to do. When the police and ambulance arrived at
the park he said, ``You're not here to stop me, you're here
to take me home'' and then shot himself in front of them. In
the days afterward, a letter arrived in the mail addressed to
his wife Stacy. Scott mailed it before taking his own life.
It said, in part:
``I know you don't believe it but I love you so much! I
have hurt you so much. Our family only has a chance if I'm
not around to bring us down any further. You're such an
unbelievable wife and mother. I know you will hold the family
together . . .''
While millions of men and women like Scott Stevens and
their families have sacrificed and hurt so much to provide
needed revenues to American government, no one has ever
thanked them for their ``service.'' There are no parades with
fluttering American flags in the breeze. No yellow ribbons.
Our country simply renders them failures.
Failure is the right description but it is directed toward
the wrong participant. Government's experiment with gambling
is the definition of failure, representing one of the biggest
public policy busts of the modern era. Over the past four
decades, government's partnership with gambling has failed in
a multitude of ways.
It has transformed gambling from a private and local
activity into the public voice of American government, such
that ever-increasing appeals to gamble, and ever-expanding
opportunities to gamble, now constitute the main ways that
our government communicates with us on a daily basis.
It has broken its promise to remain a small component of
our government and a small part of our society. In the brave
new world envisioned by this power structure--where every
cell phone is a ``casino in your pocket'' and every bar, gas
station, convenience store, computer, and home in the nation
is a place to place a bet--the essential driving message from
the American government to the American people is ``All
gambling, all good, all the time.''
It has fueled irresponsibility and non-accountability in
government by imposing a giant excise tax on the citizenry
that politicians never have to call a ``tax.''
It has failed to deliver on its over-hyped promises to fund
education, lower taxes, or pay for needed public services.
It has taken political power away from the people and
handed it over to gambling lobbyists.
It has perpetrated a phony model of economic development--a
model with a jobs multiplier effect of approximately zero,
since, in this model, nothing of value is produced.
It has promulgated the very economic attitudes and
practices--short-term is more important than sustainable,
wealth can come from ever-growing debt, something can come
from nothing, slickness trumps honesty--that led us into the
debt bubble and the Great Recession of 2008 and beyond.
It has caused neighboring states to compete against each
other in a race to the bottom.
It has taken dollars from the poor to fund programs for the
better-off.
It has spread addiction into our population, using the new
science of machine design to produce out-of-control behavior
that, according to scientists, closely resembles addictive
behavior from cocaine.
It has spread debt and bankruptcy into our population.
It has led to serious gambling-related problems among young
people.
It has contributed to broken families and child neglect and
other social messes everywhere it goes, and has taken little
or no responsibility to clean them up.
It has turned many law-abiding citizens into criminals who
cheat, steal, and embezzle in order to continue to gamble.
It has arrogantly exempted itself from truth-in-advertising
laws so that it can use taxpayer money to create and spread
deceptive advertising.
It has corrupted our sense of community and undermined our
faith that we're all in this together.
It has deliberately changed the word ``gambling'' to
``gaming'' in order to make this often destructive activity
sound as innocent as child's play.
It has fueled cynicism about the motives of our government.
It has repudiated the value of thrift by creating mass
incentives to turn potential savers into habitual bettors.
It has repudiated the virtue of ``love your neighbor'' and
replaced it with a government endorsement of predatory
practices, or preying on human weakness for gain.
It has withered our capacity as a people to confront
forthrightly our reluctance to pay taxes for the public
services we desire.
It has trampled on the ideal of ``justice for all.''
It has broken faith with the wisdom and leaders of earlier
generations who, seeing the failure of gambling in the past,
amended state constitutions to ban gambling activities.
It has lied to us about how the government actually uses
the money it gets from gambling.
It has lied to us by repeating again and again that luck--
rather than work--is the key to the American dream.
This is a critical moment. How our generation responds to
the reach and arrogance of the government-gambling power
complex will largely determine the legacy we pass on to the
next generation. Politically, economically, ethically, and
spiritually, the stakes are extraordinarily high.
Politically: Government's partnership with gambling
fundamentally changes the compact between government and the
governed. It pits government's interests against the best
interests of its people. For government to win, its citizens
must lose.
Economically: No great nation has ever built prosperity on
the foundations of personal debt, addiction, and the steady
expansion of ``businesses'' that produce no new wealth.
Relying on gambling as an economic development strategy is a
sign of surrender and defeat on the part of leaders who have
failed to lead.
Ethically: A decent government does not finance its
activities by playing its most vulnerable citizens for
suckers, thus rendering the lives of millions expendable,
exploitable, and unworthy of protection.
Spiritually: We mock the higher values that any good
society depends on--honesty, mutual trust, self-discipline,
sacrifice, concern for others, and a belief in a work ethic
that connects effort and reward--when government tells its
citizens every day that it is committed to providing ``fun''
instead of opportunity; that a rigged bet is the way to
achieve the American dream; and that spending one's hard-
earned dollars on scratch tickets is a form of good
citizenship.
This is America. Surely we can do better than this. Surely
we must. The choice is not--it has never been--between tying
our future to gambling and accepting economic decline.
Government-sponsored gambling is itself a form of economic
decline. The alternative is to muster the courage to chart a
path to true prosperity. An America freed from the yoke of
government-sponsored gambling would be an America once again
on the move--an America with broader and more sustainable
economic growth, more honesty in government, more social
trust, and the rekindling of the optimism that has long been
our defining national strength.
While many leaders on both sides of the political aisle
loudly proclaim they are committed to fighting unfairness and
inequality of opportunity in America, their support of
sponsoring and promoting gambling is actually intensifying
the very unfairness and inequality that they decry. Many
forces currently contributing to the rise of inequality, such
as globalization and technological change, cannot be directly
controlled by public policy. But government-sponsored
gambling is a public policy--and it exists only because
policy makers want it to exist.
A mounting pile of independent evidence further confirms
this reality. Government-sponsored gambling is harming
health, draining wealth from people in the lower ranks of the
income distribution, and contributing to economic inequality.
These are among the findings of Why Casinos Matter: Thirty-
One Evidence-Based Propositions from the Health and Social
Sciences, a report released from the Council on Casinos in
September 2013, an independent group of scholars and public
policy leaders convened by the Institute for American Values,
a nonpartisan New York City-based think tank.
After four decades of unfulfilled promises, corrupt deals
and broken dreams, it is time for our government to end its
partnership with organized gambling interests and to embrace
a fundamentally different and higher vision of the path to
American prosperity.
In short, after four decades of consistent failure, it is
time for our government to get out of gambling and for
gambling to get out of our government. Stop Predatory
Gambling is a Washington, DC-based nonprofit, transpartisan
network of individuals and organizations from diverse
backgrounds, political convictions and religious faiths
dedicated to this fundamental national reform. We are
committed to end the unfairness and inequality of opportunity
created by government-sponsored casinos and lotteries.
We are part of the most diverse movement in the nation, an
affirmation that most Americans share basic principles and
values regardless of their position along the political
spectrum. Today, we also provide a voice to all of these
citizens from coast-to-coast who have bravely and selflessly
fought in recent decades on behalf of our core belief that no
taxpayer dollar should be used by government to lure citizens
into gambling away their money and becoming slaves to debt;
no agency or entity of government should depend on gambling
to fund its activities; and no legislature, whether in the
name of economic development or raising revenue, should pass
laws to promote or sponsor gambling.
Some of you may ask what if government stopped sponsoring
and promoting gambling? A better question that leads to a
more revealing answer would be how did our nation educate
children prior to introducing the lottery? Did not our
parents as stakeholders fund government to provide the
educational pathways to citizenship and potential prosperity?
After World War II, how did America pivot from waging battle
to creating jobs for a prosperous peacetime and enabling its
citizens to become economic winners? Did not our government
invest in not only roads and our infrastructure but more
important, in breadwinners and families?
Already underway is a reclaiming of America from the
devastation and heartbreak of government-sponsored casinos
and lotteries.
It began in earnest with the establishment of the National
Gambling Impact Study Commission by Congress in 1996 and its
subsequent report in 1999 provided citizens with clear cut
recommendations. The bipartisan commitment and courage by
Congressman Frank Wolf, Congressman John LaFalce, Senator
Richard Lugar and the late Senator Paul Simon to determine
the truth about government-sponsored gambling, sustained and
nourished the bottom-up growth of a national citizen movement
opposing this dishonest and harmful public policy. What began
as a diverse national coalition of groups and individuals,
ultimately led to the organization of Stop Predatory
Gambling, where today empowered citizens are challenging the
gambling promoters with ever increasing intensity at the
local, state and now, with the push for internet gambling,
the federal level.
Perhaps the most visible challenge in 2014 is happening at
the ballot box, that sacred public place where citizens can
vote out of their best hopes or their worst fears for a
common future. Citizens in Massachusetts have inspiringly
waged a relentless fight against government-sponsored casinos
for almost four years running. These citizens succeeded
against overwhelming odds to achieve the first ever ballot
question in a major state attempting to repeal state gambling
laws in modern American history. Regardless of the outcome,
the repeal drive signifies the unavoidable rising tide
bringing a surge of major national reform on this issue.
Over the long-term, the most profound and lasting change
may happen in our justice system. The family of Scott Stevens
is ensuring he is no longer voiceless by bringing the facts
of their story to federal court. Such litigation is bolstered
by the rapidly-growing awareness of gambling addiction as a
major public health issue, evidenced by the national story
published last week by The Columbia University School of
Public Health about the massive public health impacts of
government-sponsored casinos and lotteries. It spotlights how
predatory gambling is harming millions of Americans and the
communities they live in.
It's inevitable that government-sponsored gambling will be
phased out in most places across the United States. It is not
a question of if but when. It's inevitable because we are a
people who believe government should promote fairness and
equality of opportunity for all. The speed of reform is up to
all of us because it is we who will decide how many more
``losers'' like Scott Stevens we are willing to sacrifice
from our own families and communities. Please join us in this
good fight. Thank you.