since that time has worked to support research, public education, training, referral, and model program development in order to further understanding and treatment for individuals and families suffering from serious gambling disorders. As has been stated several times by this committee today, the only study done on gambling is 1976 when lotteries were in their infancy. At that time, it was estimated that the total legal amount wagered in the United States amounted to about $22 billion, or about 2 percent of the United States' personal income, while gambling revenues amounted to approximately $3 billion. Since 1976, gambling has quickly proliferated throughout the United States. Over 37 jurisdictions operate lotteries, six States permit casino gambling, and six States permit riverboat gambling, and the Federal Government allows high stakes bingo and/or casino gambling on Indian reservations across the country. By 1994, all but two States had some type of legal gambling activity and the amount wagered in the United States had reached the alarming amount of $482 billion, or about 8.5 percent of personal income while legal gambling revenues amounted to approximately $39.9 billion. In today's high-tech society, which includes Internet and offshore gambling enterprises, the ability of the computer has provided a wide range of gambling action. Future results and effects both positive and negative of the computer age gambling industry remain an unknown. Accordingly, it is time to examine this problem. Such a study should be mandated immediately in order to have research-based information to know exactly the extent of the prevalence and impact of pathological gambling in the 1990's. Most Americans are social gamblers who can participate in gambling activity without any harmful effects, but a rapidly growing percentage of the population for whom gambling becomes uncontrollable are referred to as pathological or problem gamblers, commonly called compulsive gamblers. Pathological gambling is officially recognized by the American Medical Association and medical community, as a health issue. The American Psychiatric Association first recognized pathological gambling as a mental disorder in its Diagnostic and Statistical Manual, DSM-III, in 1980, while the American Medical Association passed a resolution in 1994 asking physicians to advise patients about the addictive nature of gambling activity. The essential features of this disorder are continued and periodic loss of control over gambling; a progression in the frequency and the amount wagered, and in the preoccupation with gambling, and in obtaining moneys with which to gamble; and a continuation of this behavior despite any adverse consequences. The 1976 study showed a prevalence rate of about .77 percent, or 1.1 million probable compulsive gamblers, as they were called in 1976. Prevalence studies conducted in 15 States since the advent of the lotteries and other high-tech gambling innovations show a combined prevalence rate of 1.7 percent in 1989 in Iowa to 7 percent most recently in Louisiana in 1995. On average, States with more legal gambling have more problem and pathological gamblers, as indicated in a recent Iowa study where the prevalence rate increased from 1.7 percent in 1989 to 5.4 percent in 1995. Demographically, males, nonwhites, younger individuals, and those of lower education appear to be at greater risk for developing gambling problems. Recent studies have shown that the presence of pathological gambling among high school juveniles is as much as two to four times the prevalence rate throughout North America in adults. These findings were reviewed in April 1995 by the Harvard Medical School think tank on teen gambling in which members of the national council and the gaming industry participated as an initial effort to solve this problem. Since there are no systematic studies of the financial and social impact of pathological gambling, assumptions about the costs to the Nation must be based upon existing surveys of individuals in treatment which show high costs to the individuals which include indebtedness, deteriorating relations with family, depression, and ultimately suicide; to the family, emotional turmoil, stress-related diseases, lack of financial support, neglect, and divorce; and substantial cost to society such as loss of work productivity, money stolen or embezzled, unpaid tax, bankruptcy, as well as substantial cost to the criminal justice system. Available services for pathological gamblers rank well below those of other addictions. While there are over 13,000 programs for alcohol and other substance abuses throughout the Nation, there are fewer than 100 programs for pathological gamblers. Only 13 States provide any financial support for education, research for pathological gambling, and the Federal Government provides absolutely none. While gambling regulation has historically been the prerogative of State governments, the Federal Government has become involved with gambling through legislation, such as the Indian Gaming Regulatory Act, the regulation of interstate commerce inclusive of the many gaming companies and the impact of problem and pathological gamblers on the armed services. Mr. HYDE. Could the gentleman bring his remarks to a conclusion. Mr. ASHE. I am just coming to a conclusion. Mr. HYDE. Very good. I didn't want to cut you off. Mr. ASHE. And through the criminal justice system. The rapid expansion of opportunities to gamble makes it imperative that the Federal Government address this issue of problem gambling. Problem gambling has a negative impact on the entire Nation, and to adequately address this issue with plausible solutions and treatment for prevention requires the attention of the Federal Government. The national council would be honored to be part and could substantially contribute to the Commission as is contemplated by House bill 497. Thank you for the opportunity to present this information. [The prepared statement of Mr. Ashe follows:] PREPARED STATEMENT OF PAUL R. ASHE, PRESIDENT, NATIONAL COUNCIL ON PROBLEM GAMBLING, INC. BACKGROUND The most recent and only national study of gambling behavior was completed in 1976 when state lotteries were in their infancy. At that time, it was estimated that total legal annual wagering in the United States amounted to $22.4 billion or about 2% of United States personal income, while legal gaming revenues amounted to approximately $3 billion annually. Since 1976, gambling has quickly proliferated throughout the United States. Over thirty seven states operate lotteries, six states permit casino gambling, six states permit riverboat gambling and the federal government allows high-stakes bingo and/or casino gambling on Indian lands across the country. By 1994, the amount wagered legally in the United States had reached $482.1 billion or 8.5% of United States personal income while legal gaming revenues mounted to $39.9 billion. In today's high tech society which includes the Internet and off-shore gambling enterprises, the ability of the computer has provided a wide range of gambling action. Future results and effects (positive or negative) of the computer age gambling industry remains an unknown. Accordingly, it is time to examine this abnormal interest and promotion of gambling as a cure all for various problems. To date no national study has been conducted to assess the impact of the rapidly expanding gaming industry on society. Such a study should be mandated immediately. DEFINING PROBLEM AND PATHOLOGICAL (COMPULSIVE) GAMBLING Most Americans are social gamblers who can participate in a gaming activity without harmful effects. A small percentage of the population, for whom gambling becomes uncontrollable, are referred to as problem or pathological (compulsive) gamblers. The American Psychiatric Association first recognized pathological gambling as a mental disorder by its inclusion in the Diagnostic and Statistical Manual (DSM-III) in 1980. Pathological gambling was recognized as an addiction by the American Medical Association in 1994. The essential features of the disorder are a continuous or periodic loss of control over gambling; a progression in frequency and in the amount wagered, in the preoccupation with gambling, and in obtaining monies with which to gamble; and a continuation of the behavior despite adverse consequences. EPIDEMIOLOGY The 1976 study for the Commission on the Review of the National Policy Toward Gambling showed a prevalence rate of 77% or 1.1 million "probable compulsive gamblers" (as they were called) in the United States. Prevalence studies in fifteen states conducted since the advent of lotteries and other high-tech gambling innovations show combined prevalence rates from 1.7% (1989) in Iowa to 7.0% (1995) in Louisiana. On average, states with more legalized gambling have more problem and pathological gamblers, as indicated in the Iowa studies where prevalence rates increased from 1.7% in 1989 to 5.4% in 1995. Demographically, males, non-whites, younger individuals, and those with lower education appear to be at greater risk for developing gambling problems. Recent studies have shown that the presence of problem and pathological gambling among high school juveniles is as much as two to four times the prevalence rate of adults with problem/pathological gambling throughout North America. These findings were reviewed in April of 1995 at a Harvard Medical School Think Tank on Teen Gambling, of which members of the National Council on Problem Gambling and the gaming industry both participated as an initial effort to solve this problem. THE COST OF PATHOLOGICAL GAMBLING Since there are no systematic studies of the financial or social impact of pathological gambling, assumptions about the costs to the nation must be based on existing surveys of individuals in treatment which show high costs to the individual (indebtedness, deteriorating relationships with family and friends, depression and suicide attempts); to the family (emotional turmoil, stress-related diseases, lack of financial support, neglect and divorce); and substantial costs to society (lost work productivity, monies stolen or embezzled, unpaid taxes, and bankruptcies as well as substantial costs to the criminal justice system). AVAILABILITY OF TREATMENT AND PUBLIC EDUCATION PROGRAMS Available services for pathological gamblers rank well below those for other addictions. While there are over 13,000 programs for alcohol and other substance abuse problems throughout the nation, there are fewer than one hundred treatment programs for pathological gamblers. Only thirteen states provide any financial support for education or research for pathological gambling, and the federal government pro vides none. THE NEED FOR CONCERN AND INVOLVEMENT BY THE FEDERAL GOVERNMENT While gambling regulation has historically been a prerogative of state governments, the federal government has become involved with gambling through legislation such as the Indian Gaming Regulatory Act, the regulation of interstate commerce inclusive of many gaming companies, and the impact of problem and pathological gamblers on the armed services, and the federal criminal justice system. The current rapid proliferation of opportunities to gamble makes it imperative that the federal government address the issue of problem and pathological gambling. Problem and pathological gambling has a negative impact on our entire nation. In order to adequately address this issue with plausible solutions for treatment and preventative education, problem and pathological gambling requires the attention of the federal government. The National Council on Problem Gambling would be honored to be a part of, and could substantially contribute to a commission as is contemplated by House Bill 497. |