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Researcher Points to Four Reasons

The American Gaming Association (AGA) has opened up a can of worms with a study that it recently commissioned concerning the social costs associated with problem gambling (whether at the land or online casinos). The white paper that resulted from the paper has led to a flurry of media attention and many land and online casinos are looking for vindication for the bad reputation that they have in many circles because so many opponents site the high social costs related to allowing gambling activities in a society.

Dr. Douglas M. Walker is a professor of economics at Charleston College, and was commissioned by the AGA to look into social costs associated with problem or pathological gamblers. The AGA represents the interests of much of the land gambling industry in the United States (online casinos are still banned in the U.S. and subsequently have no large scale interest group). Walker’s white paper was posted on the AGA Web site, and within a short time was making national news with it’s simple yet valid assertion that past estimations of social costs associated with problem gambling did not take into consideration four main flaws in the research.

Walker points to four basic research related issues that have never before been blatantly addressed in relation to problem gambling research:

• Survey data validity
• Comorbidity, discussed in depth here:
• Measurement of government expenditures related problem gambling treatments and programs
• The counterfactual scenario, or more specifically, the estimate of societal effects if legalized gambling had never occurred

The research study certainly has some valid points, and though the mainstream media has picked up on the issue and blown up the implications associated with invalidating past estimations of social costs, the AGA has much more humble expectations for the white paper. The President and Chief Executive for the American Gaming Association, Frank Fahrenkopf Jr, remarks that “These are complex issues that don’t have easy answers but the methodological issues outlined in this paper must be addressed by researchers in order for policymakers and voters to have a meaningful debate about social costs attributable to gambling.” The AGA is merely hoping that the white paper will add a new perspective to future discussions related to problem gambling at the land and online casinos.