capitalism

G
GAMBLING
Most Americans appear to enjoy gambling. Opportunities
abound, ranging from state and interstate lotteries, to traditional
contests of horses and greyhounds, to all manner of
casinos, whether on land or water or on the Internet.
However, although more and more consumers embrace this
new freedom to wager, others insist that there is cause for
serious concern. Fearing an outbreak of compulsive gambling,
they have lobbied lawmakers to intervene to prevent
a further proliferation of gambling outlets and to roll back
those that currently exist. Their lobbying has raised a number
of questions, among them: Should gambling be permitted
at all? If so, which forms of gambling are acceptable?
Finally, if gambling is to be tolerated, should it be regulated
and how?
Legalized gambling has become one of those polarizing
issues that drive many thoughtful individuals to examine
their underlying beliefs regarding freedom of the individual.
Some, such as the Cato Institute’s Tom W. Bell, have
argued that “our rights to peaceably dispose of our property
include the right to gamble, online or off.” Others, worried
about personal corruption through compulsive gambling,
have urged “a strategy of containment to minimize the
moral risks of gambling for individuals and society.” Fed
up with the liberal attitude toward gambling adopted by
many states, this group recently elevated their campaign
to the federal level. Accordingly, in 1997, the 104th Congress
established the National Gambling Impact Study
Commission (NGISC) to “conduct a comprehensive study
of the social and economic impacts of gambling in the
United States.” Two years later, the NGISC recommended
a “pause in the expansion of gambling.”
This controversy is nothing new. Both in America and
throughout the world, gambling has a long and colorful history.
Historians Lisa Morris and Alan Block have shown
that, in the United States, gambling was legalized in the
lower Mississippi Valley, and “until the 1840s professional,
organized gambling was primarily carried out on steamboats
plying the Mississippi and Ohio Rivers and the Great
Lakes.” By midcentury, the locus of organized gambling
moved to the West and particularly northern California,
where it was vitalized by the Gold Rush.
Later, despite Prohibition—or perhaps because of it—
underworld gambling operations thrived on land, spawning
“a series of infamous ‘crime towns.’” Lotteries date back to
ancient times, and in the 16th century, Queen Elizabeth I
chartered the first English lottery. In colonial America and
following independence, lotteries prospered as a muchpromoted
and voluntary means to supplement the public
coffers. However, as a steady procession of public scandals
took their toll, the 19th century witnessed a political backlash
against lotteries that culminated in their universal
prohibition. The legal lottery did not return until 1963,
when New Hampshire introduced a state lottery. Between
1965 and 1993, no less than 35 states and the District of
Columbia introduced state lottery monopolies.
The historical tug of war between gambling proponents
and detractors continues. Today, an overwhelming majority
of states enthusiastically promote homegrown lotteries, and
a renewed interest in casino gaming is flourishing.
According to a recent Harrah’s survey, fully 32% of U.S.
households gambled at a casino in 1996. Those households
that did gamble averaged 4.8 visits, for an overall total of
176 million visits. This figure is up by 14% from 1995.
The rapid increase in popularity of gambling has led to a
sense of emergency among its opponents, who have pressed
their case on several fronts. The various state lotteries have
been almost universally denounced as immoral and economically
harmful. Although state officials undoubtedly
enjoy the additional revenue, critics have argued that “losses
fall disproportionately on some of the more vulnerable
members of society.” Meanwhile, casinos are accused of
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