Legalized gambling and its impacts in a central Minnesota vacation community: A case study.

ABSTRACT

The economic and social effects of legalized gambling in a Minnesota community were studied (1) to inform the state's citizens and decision-makers of the community impacts of legalized gambling, particularly the cumulative community revenue loss, (2) to gather comparative data in a geographically and economically distinct area to determine the extent to which regional gambling rates and revenue losses vary, and (3) to refine existing research methods. The community and the types of gambling available are described. Data on gambling expenditures were obtained from various state agencies. Lottery and casino winners were interviewed to discover how their winnings were distributed. Annual (1991) player losses, profit margins, taxes, and resulting economic and social impacts are discussed. The most consequential findings are estimates of annual player losses ($3.3 million; $205 per capita) and community revenue losses ($2.2 million; $138 per capita). Per capita lottery and charitable gambling player losses were 9.4% lower than those of a community studied earlier; per capita community revenue losses were 7.6% lower. Research methods developed in this study provided more reliable estimates than those used previously. Suggestions are offered to increase reliability for future studies.