EXECUTIVE SUMMARY
1. This study was undertaken through a review of the international research evidence, as well as relevant British research, on the social impacts of gambling and casinos. It also analysed fresh data from the 1999 Prevalence Survey of gambling in Great Britain to investigate patterns of gambling behaviour in Scotland.
Research Limitations
2. Understanding of the social impacts of gambling is limited by a serious lack of high quality research. Many studies have produced inconclusive or contradictory results, which can exacerbate the controversy that surrounds gambling with an evidence base that is often not able to resolve the most contentious issues.
3. As a result both the negative as well as the positive effects of gambling, particularly casino gambling, tend to be overstated. Claims that casinos create significant wealth, new jobs and regenerate local economies; or that they create massive social problems through increases in problem gambling and crime tend to be exaggerated. The evidence base shows that casinos are neither as beneficial as supporters claim, nor as damaging as opponents fear.
Problem Gambling
4. Problem gambling is defined as behaviour that is out of control and that disrupts personal, family, financial and employment relations. It is linked to financial problems such as debt and bankruptcy, divorce, lost productivity, crime (such as theft and fraud), depression and suicide.
5. It is estimated that between 0.6% - 0.8% of the adult population in Britain are problem gamblers (between 275,000 and 370,000 people). The percentages of the population are similar for Scotland.
Risk Factors and Disadvantaged groups
6. Disadvantaged social groups who experience poverty, unemployment, dependence on welfare, and low levels of education and household income are most likely to suffer the adverse consequences of increased gambling. Within these groups, those who are male, single and under thirty five years of age are also more likely to be at risk from developing problems with their gambling. In addition, problem gamblers are more likely than non-problem players to have heavy and/or problematic consumption of drugs, alcohol and cigarettes.
7. Although individuals from these groups may not spend more money on gambling in absolute terms, they do spend a higher proportion of their incomes than wealthier players.
Availability
8. Availability and convenience are strongly associated with problem gambling. Electronic gaming machines ( EGMs) that are located outside casinos and are widely dispersed throughout the community in bars, hotels and clubs can encourage impulsive gambling and are associated with the highest rates of problem gambling worldwide.
9. At the other end of the scale, casinos tend to require deliberate effort, in terms of planning and travelling to a venue, which discourages impulsive play. Convenience is therefore a crucial regulatory issue (particularly when combined with the absence of public awareness activities), which has implications for the location of casinos.
Casino Gambling
10. Currently, around 3% of the British adult population gamble in casinos, although this is likely to increase as the effects of the new legislation come into force. Of these, between 5% - 8% are considered problem gamblers (i.e. less than a quarter of one per cent of the population).
11. Casino patrons have higher levels of income and education than other gamblers, and while casinos are the most popular form of gambling for individuals from the highest social class, they are the least popular form for those from the lowest social class. Individuals on lower incomes and with lower levels of education are less likely to visit casinos than the general population, although when they do, they tend to experience more problems with their playing.
12. In Britain, there are two distinct groups who experience problems with casino gambling: single, retired males aged over forty, especially those who are of Chinese ethnicity, and single unemployed males under thirty. These individuals also have higher levels of tobacco and alcohol consumption than other players.
Casino Impacts
13. Research has found that proximity to casinos increases rates of problem gambling in the local population. Some studies have found that the location of a casino within 50 miles of an individual's home can double the prevalence of problem gambling, although other work also suggests that the provision of specialist problem gambling services and public health initiatives can militate against such increases.
14. Casinos do not appear to increase per capita crime, although total crime in a neighbourhood may increase. This seems to be an effect of population growth: casinos tend to attract large numbers of visitors to an area, and casino-jurisdictions can also experience population growth, increasing overall numbers of people in an area who can commit or fall victim to crime.
15. This effect appears to be concentrated on specific types of crime, such as burglary, and does not seem to affect violent crime and most street crimes. Fear of crime does not appear to increase in communities that introduce casinos, and may actually decrease due to the presence of casinos' own security measures and the development of run-down areas.
Types of Casinos
16. Casinos are distinguished by a range of factors, including size and geographical location, which can result in very different impacts. Large 'resort' casinos are often located away from major population centres and incorporate a range of leisure facilities which makes them attractive to tourists. In contrast, smaller casinos are often located in more urban or suburban environments and offer fewer facilities, with less potential for attracting tourists.
17. The social costs of casinos tend to be exported to the areas where the gamblers who play them live. This means that 'resort' and rural casinos tend to be associated with the lowest social costs relative to economic benefits, since the majority of their customers come from outwith the immediate area. However, urban or suburban casinos tend to draw large numbers of local residents to them, meaning that social costs remain within the community.
Long Term Impacts
18. Longitudinal studies from Australia, New Zealand and the U.S. have found that the prevalence of problem gambling has remained stable or declined over time despite the introduction of casinos and other forms of gambling. This has been attributed to the provision of public awareness campaigns and treatment services, as well as processes of adaptation whereby communities adjust to the presence of gambling around them.
Prevention and Treatment
19. The provision of public health information and specialised treatment services targeted towards 'at risk' groups can help to combat the potential negative effects of increased casino gambling.
20. Public health approaches that focus on the prevention of problem behaviour in the general population can save costs in the long term, since, across a range of behavioural disorders, severe problem gambling is one of the most difficult and expensive to treat.
21. Raising awareness is particularly important in Scotland. As the pre-2005 legislation has restricted gambling in this country for so long, many individuals are simply not aware of the risks gambling can pose, nor are they aware of the availability of services to treat it. For example, less than half of the population have ever heard of Gamblers Anonymous, and only one in five problem gamblers has ever sought help for their difficulties.
Casinos in Scotland
22. In Scotland, small casinos and those located in urban or suburban areas would have the greatest potential for negative social impacts, particularly if those areas are already characterised by high levels of social deprivation.
23. However, the real question is the extent to which any of the proposed casinos would draw on their local populations. At present, it is not possible to predict the extent to which these casinos might attract local residents who are at risk from developing gambling problems.
24. In addition, the steps taken by public authorities to prevent the development of gambling problems could have a significant effect on the eventual social impact of a casino. Given this, it is crucial that public authorities adopt a proactive approach to ensure that the appropriate resources to prevent and treat problem gambling are specifically targeted within the areas that might host or be proximate to casinos.