Effect of the economy on gambling?

[blaze87]

posting a rather weird opinionated question

would the state of the economy affect the propensity to gamble?

ie, do you think a recession would stop people from gambling? the answer would obviously seems like a yes. a recession would create some kind of emotional barrier to stop people from gambling, but is it really?

 

[Sean K]

Re: Gambling

posting a rather weird opinionated question

would the state of the economy affect the propensity to gamble?

ie, do you think a recession would stop people from gambling? the answer would obviously seems like a yes. a recession would create some kind of emotional barrier to stop people from gambling, but is it really?

Just a little. It's like alcohol, a consumer staple...

 

[noirua]

Re: Gambling

posting a rather weird opinionated question

would the state of the economy affect the propensity to gamble?

ie, do you think a recession would stop people from gambling? the answer would obviously seems like a yes. a recession would create some kind of emotional barrier to stop people from gambling, but is it really?

Outlaw all forms of online betting and close down all forms of casinos. Beyond that would be more difficult.

Buying shares, options, CFD's are all forms of gambling and some go overboard for the big win. The Dot-com disaster was the last big gamble. What is the next to tumble bigtime?

 

[numbercruncher]

Re: Gambling

What is the next to tumble bigtime?

One would assume the same thing that is tumbling big time in nearly every western country

Casinos are an important part of the economy, provide loads of jobs and attract big players from overseas.

Its the Pokies that are a social menace, every pub/club packed to the brim with them.

 

[Trembling Hand]

Re: Gambling

Its the Pokies that are a social menace, every pub/club packed to the brim with them.

Yeah and Casinos have no Pokies

 

[numbercruncher]

Re: Gambling

Yeah and Casinos have no Pokies

But Casinos only exist in like 8 Citys, you have Pokie outlets in virtually every single community in the country. Thats where I see the problem.

 

[cuttlefish]

Re: Gambling

posting a rather weird opinionated question

would the state of the economy affect the propensity to gamble?

ie, do you think a recession would stop people from gambling? the answer would obviously seems like a yes. a recession would create some kind of emotional barrier to stop people from gambling, but is it really?

Quite possibly the opposite - people are even more on the lookout for an escape to the burdens they face in a recession and so resorting to gambling to try to find that escape could increase. When people have money they do more interesting things (skiing, theatre, holidays, boating, sports etc.).

When money is short they resort to looking for quick escapes to their financial predicament (pokies, horses etc.) and cheaper forms of entertainment (e.g. alcohol).

(my opinion only but I vaguely remember reading something to this effect many years ago as well).

 

[xoa]

People may flock to casinos when the pokies start outperforming conventional investments.

 

[Julia]

Re: Gambling

Quite possibly the opposite - people are even more on the lookout for an escape to the burdens they face in a recession and so resorting to gambling to try to find that escape could increase. When people have money they do more interesting things (skiing, theatre, holidays, boating, sports etc.).

When money is short they resort to looking for quick escapes to their financial predicament (pokies, horses etc.) and cheaper forms of entertainment (e.g. alcohol).

(my opinion only but I vaguely remember reading something to this effect many years ago as well).

Beat me to it, Cuttlefish. I don't specifically know about in a recession but many people on very low incomes, including welfare, do - as you have said - enjoy the escapism of particularly the pokies. Several of them have told us that it's partly the atmosphere, the noise, the companionship of other people doing the same thing. And then there's always that illusion that they will hit the big prize and all their worries will disappear.

 

[Sean K]

Re: Gambling

Beat me to it, Cuttlefish. I don't specifically know about in a recession but many people on very low incomes, including welfare, do - as you have said - enjoy the escapism of particularly the pokies.

Alcohol and tobacco companies will keep chugging along too...

The cure for the weak..

 

[prawn_86]

Re: Gambling

Alcohol and tobacco companies will keep chugging along too...

The cure for the weak..

Yup,

Its what the economists call 'in-elastic demand'. Menaing that no matter how much prices rise or incomes fall (within reason of course), they will still be purchased.

 

[2020hindsight]

I'm guessing that with desperation, people would gamble all the more

Xenophon is onto something you'd think... (and I'll bet you a fiver that something's gonna happen for sure )

Mr Xenophon is also backed by Family First Senator Steve Fielding and the Nationals' Barnaby Joy

http://www.abc.net.au/news/stories/2008/02/10/2158924.htm

Rudd backs Xenophon on banning pokie ATMs
Posted Sun Feb 10, 2008 7:10pm AEDT

Federal Senator-elect Nick Xenophon says there is no reason the Commonwealth cannot force the states to get rid of automatic teller machines in gaming venues.

Prime Minister Kevin Rudd says he personally supports Mr Xenophon's push for an ATM ban in gambling areas, but that does not mean the move will become Government policy.

Mr Xenophon says Mr Rudd's stance on gambling is promising.

"The fact that Kevin Rudd has made it very clear that he doesn't think that ATMs belong in pokies venues is a big development," he said.

"The Commonwealth has the power under its banking and telecommunications powers to get rid of ATMs, it can bypass the states on this."

Mr Xenophon is also backed by Family First Senator Steve Fielding and the Nationals' Barnaby Joyce.

 

[2020hindsight]

PS I believe I heard Fielding on the radio saying that in his opinion "pokies should be confined to race courses and casinos".

In which case the question would presumably become "what effect would reducing gambling have on the economy"

 

[Smurf1976]

Re: Gambling

Its the Pokies that are a social menace, every pub/club packed to the brim with them.

Agreed. They deliberately concentrate them in the poorer suburbs knowing full well what the social effects are likely to be. Plenty of people there lacking decent financial knowledge or the (finanical) means to invest in shares, property etc and hoping for that big win.

I'm generally not keen on banning things or government regulation in general. We've got far too many regulations as it is IMO. I'm even opposed to any move to ban smoking etc (no I don't smoke) but pokies are only real exception that comes to mind. Fair enough in casinos, onboard ships etc but the social consequences in the outer suburbs outweigh any argument about personal choice and freedom IMO.

Truly sad to see the car out of fuel, the power cut off and the landlord threatening eviction (because the rent isn't paid) whilst the money went into the pokies. Even worse when the kids suffer malnutrition as a result. All too common IMO.

They are also a significant source of greenhouse gas emissions by the way. It's in the order of 3.5 tonnes of CO2 per machine per annum according to the power consumption figures I obtained from a casino technical employee a few years ago (not sure if they use less now, probably not with all the lights etc). It's to the point that electricity distributors often have to upgrade the supply in the area when a hotel puts them in.

Turning off just one of those machines (for just an hour) beats anything I'll save sitting in the dark at the end of March (Earth Hour). I won't hold my breath waiting for political support for such a move though - easier to just target the likes of me with a few lights in the house.

As for the economy, every cent that goes into those damn machines is a cent not spent in some other business that in many cases employs more people and nearly always provides something more useful than just being a means of throwing money away. Any surplus funds I'll give to charity or invest in something productve rather than just hand it over to some pokie owner.

In the event of a recession, I wouldn't be surprised to see no real change. Some will cut back or eliminate gambling. Others will gamble more hoping for that big win.