Report: Gambling addicts boost Oregon Lottery

Summary

More than half the Oregon Lottery revenue from video gambling appears to be coming from a small number of players, many with gambling problems. Three years of data shows just 10 percent of video gamblers account for about 53 percent of the money lost on the game.

Story Published: Nov 14, 2009 at 7:01 PM PST

Story Updated: Nov 14, 2009 at 7:01 PM PST

Report: Gambling addicts boost Oregon Lottery
PORTLAND, Ore. (AP) - More than half the Oregon Lottery revenue from video gambling appears to be coming from a small number of players, many with gambling problems.

The Oregonian reports that three years of data the newspaper obtained under state public records law shows just 10 percent of video gamblers account for about 53 percent of the money lost on the game.

These heavy gamblers tell the lottery they lose more than $500 a month, every month.

"Unless you're in it, you can't understand the depths of a gambling compulsion," says Nate Peterson of Portland, who lost $5,000 on video gambling in eight months before he sought treatment last year.

"You're scared to tell anyone, there's such a stigma," Peterson told The Oregonian. "But I was killing myself ... I was really dying inside."

The newspaper said that many state lawmakers who seek lottery cash to pay for schools, parks and other state services do not understand the real costs.

Many gambling addicts say they sink into debt, lie to friends and steal from their employers and loved ones.

"People in the Legislature have no idea about these numbers and the damage that is done to people's lives," says Rep. Carolyn Tomei, D-Milwaukie. "It's a message that frankly wouldn't be welcomed in the Legislature right now, because we've become so dependent on the lottery's money."

The Oregon Lottery acknowledges the challenge in its strategic plan, which states that it will work to balance its mission to maximize revenues "while minimizing the impact of problem gambling in Oregon."

The lottery is a leading player in statewide campaigns to discourage problem gambling, and 1 percent of lottery profits cover all costs for all gamblers seeking state-funded treatment.

"We understand there is a portion of our players that have a problem with gambling," said Carole Hardy, the lottery's assistant director for marketing. "We try to educate them and their loved ones about what's available to help them."

But the lottery doesn't know how many of its players fit the profile of problem gamblers even though officials acknowledge there are ways to gauge that number.

Hardy says the lottery is concerned about players who lose large amounts of money. But she says it comes down to "free will" when deciding how much money to play.

"With any product, there's typically going to be loyal customers," Hardy said. "What you see in our business is in fact not all that different than any other product."

State officials say there are about 74,000 problem gamblers in Oregon. To get that number, researchers ask questions such as: Are you borrowing money, lying, not paying bills, or losing time at work or home -- all to keep gambling?

"Most people who gamble can handle it without problems," said Paul Potter, problem gambling services manager at the Oregon Department of Human Services. "For a certain number of people, gambling is a very dangerous activity."

But for problem gamblers, quitting is not that simple. Sue Slavich says she hasn't gambled for almost eight years after she spent nearly a decade hooked on video poker.

Slavich, who worked as a waitress, says she palmed $1 and $5 and $10 bills while working at one restaurant, borrowed money from friends and wrote one bad check after another.

"I didn't want to gamble any more, but it was a losing battle," she said. "The only options I saw were to kill myself, go to jail, or stop gambling."