Responsible Gambling Collaborative says ‘those who profit’ from gaming need to fund research, treatment

Monday, January 13, 2020 12:00 PM
  • Howard Stutz, CDC Gaming

SAN DIEGO – For the first time, a collective made up of academics, researchers, advocacy groups, and organizations associated with the casino gaming industry will work to provide a framework and recommendations for preventing problem gambling while promoting responsible gambling solutions across the U.S.

At the Winter Meeting of the National Council of Legislators from Gaming States (NCLGS) on Saturday, the Responsible Gambling Collaborative unveiled six principles it will initiate to generate discussion, encourage partnership, and create new insights into the issue.

The Collaborative, which was formed in 2018, will also conduct a state-by-state study on the allocation of responsible gambling funding.

Longtime casino industry executive Alan Feldman, who joined the University of Nevada Las Vegas’ International Gaming Institute last year as its distinguished fellow for responsible gaming, told the NCLGS audience the Collaborative “aspires to make even greater strides toward smarter policies and better practices” in addressing problem gambling.

Alan Feldman makes a point during the panel discussion/Photo via Howard Stutz

“As states are one of the main beneficiaries of gaming revenue, it is essential that designated funding for responsible gambling is used for its intended purpose,” Feldman said.

The NCLGS, which met this weekend at the Marriott Marquis San Diego Marina, includes members from states with commercial and tribal casinos, racetrack casinos, lotteries and emerging sports betting markets. More than 40 legislators from 20 states attended the conference, along with some 200 gaming operators, suppliers, sports executives, attorneys, analysts, regulators, public officials, and others with a stake in legalized gambling.

Feldman and five panelists representing the Collaborative agreed that entities that benefit from legalized gaming – operators, equipment and technology providers, and state governments – need to be active participants in the effort.

Feldman, a former communications executive who spent nearly three decades with both Mirage Resorts and MGM Resorts International, has long advocated a need for the gaming industry to embrace both responsible gaming initiatives and research into problem gambling issues and causes.

He, and others who spoke Saturday, cited the uniqueness of the Collaborative’s makeup and of the group’s mission.

“We’re like a football team,” said James Whelan, a professor of clinical health at the University of Memphis. “Everybody reading from the same playbook.”

“As gambling has gone mainstream, this collaborative was long overdue,” Brianne Doura-Schawohl, legislative director for the National Council on Problem Gambling, added.

The six principles laid out by the Collaborative include:

  • Support funding for research and evaluation;
  • Support funding for problem gambling treatment;
  • Help patrons make informed choices about their gambling;
  • Ensure every company has a responsible gambling plan and industry employees understand their role and responsibility in fostering responsible gambling and preventing problem gambling behavior;
  • Confirm that gambling-related business practices encourage responsible gambling; and,
  • Equip consumers with the tools they need to gamble responsibly and prevent problem gambling behavior.

The Collaborative conducted a study in order to better understand whether the funds allocated for responsible gambling and problem gambling, in the 16 states that received gaming tax proceeds for those efforts, were spent appropriately in the most recently fiscal year. The analysis showed that states’ handling of the tax dollars fell into three categories:

  • Six states (Indiana, Maryland, New Jersey, Nevada, New York and Pennsylvania) likely spent the allocated tax money on responsible gambling and problem gambling issues.
  • Four states (Kansas, Louisiana, Missouri and Oklahoma) likely did not spend the allocated tax money on responsible gambling and problem gambling issues.
  • Four states (California, Iowa, Mississippi and Ohio) are unclear. In these cases, funds may be partially diverted to other issues, or the state has recently rolled back the dedicated funding streams for responsible gambling and problem gambling altogether or never had a dedicated funding stream.

Whelan said research into problem gambling and responsible gambling is new.

“We haven’t been at it very long,” he said. “There are more publications on alcohol abuse than there has ever been on gambling. We’re just beginning to scratch away on gambling.”

Alan Feldman and James Whelan discuss an issue during the NIGA session/Photo by Howard Stutz

Russell Sanna, chairman of the National Center for Responsible Gaming, said it was “appropriate” to announce the initiative’s creation at NCLGS, adding “being here is a big step.”

Feldman echoed the remarks, telling lawmakers in attendance that states need to be held responsible for helping fund responsible gaming initiatives.

Doura-Schawohl said federal dollars for problem gambling research are nonexistent. “All those who profit (from gambling) bear responsibility to fund” studies and treatment alternatives, she said. The growth of sports betting, she added, offers an opportunity to “incorporate responsible gambling funds in legislation or policy.”

Collaborative participants include the American Gaming Association, Association of Gaming Equipment Manufacturers (AGEM), Association of Problem Gambling Service Administrators, Harvard School of Public Health, National Center for Responsible Gaming, National Council on Problem Gambling, National Indian Gaming Association, National Thoroughbred Racing Association, the Nevada Council on Problem Gambling, North American Association of State and Provincial Lotteries, Responsible Gambling Council, University of Nevada, Las Vegas – International Gaming Institute, University of Memphis, Washington State University, and Yale School of Medicine.

“I can think of no better way to lead our industry into a new decade than by renewing our commitment to effectively promote responsible gaming and tackle problem gambling head on,” AAG CEO Bill Miller said in a statement.

“The Responsible Gambling Collaborative has an important role to play as we chart a new course for responsible gaming, and the AGA is proud to be a part of it,” Miller said. “The research released today provides important insight into the allocation of funding for essential programs. As the top benefactor of gaming taxes, it’s troubling to see that state responsible gaming funds are not always used for their intended purpose.”

Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.