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Expert: Social Costs Outweigh Casino Benefits

7 August 2002

PROVIDENCE, Rhode Island – As reported by the Pawtucket Times: "Before the Sherlock Commission studying gambling in Rhode Island looks at casinos or any future gambling enterprises, it needs to examine whether the social benefits of existing gambling outweigh the social costs.

"That's the assessment of Marvin A. Steinberg, executive director of the Connecticut Council on Problem Gambling (CCPG), who addressed the committee in its second public session Tuesday evening.

"According to Steinberg, `social costs are almost two times greater than the social benefits.'

"Nationwide, Steinberg said, that imbalance leads to an annual loss of $27.5 billion.

"The situation can be deceiving, he said, because the benefits, such as job creation and revenues, `are up-front and easily measured'" while the costs `are indirect and take longer to arrive.'

"…Problem gambling has existed for thousands of years, Steinberg conceded, and Rhode Island will have problem gamblers with or without a casino.

"But, he said, if more gambling facilities are available, people will develop gambling problems they would not have if the facility were not nearby.

"…Steinberg recommended that the state conduct a gambling prevalence study -- suggesting that the state `spend a lot of money' to `do it right' and have a comprehensive sample that will allow an analysis of different subsets of the population.

"He also said Rhode Island should adequately fund its gambling helpline, as well as specialized treatment for problem gamblers and their families.

"…Steinberg was one of three witnesses to appear before the Sherlock Commission's second meeting on the economic and social impacts, positive and negative, of authorizing additional gaming in the state…"

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