Extent of the Problem

Gambling machines have only been legal in Montana since 1985 and under
state regulation since 1989. In the relative spectrum of things, that's
a very young industry.
But legal gambling in Montana has come of age very rapidly and by necessity.
Other
industries in Montana such as agriculture, mining or logging had more
than a century to learn about their businesses--improved, more
efficient methods and techniques, to be sure--but also about
inadvertent and initially misunderstood environmental and even social
harms that accompanied their activity.
Only during the 1990s in
Montana did there emerge a recognition that with legal gambling came
the potential for a few players to lose sight of the recreational
intent of legal games of chance and, who would instead, indulge in
gambling compulsively.
Three attempts were made--during the
1995, 1997 and 1999 legislative sessions--to involve government and use
gaming tax proceeds to initiate state-administered treatment programs.
Gaming business organizations backed the legislation, but to no avail.
Since then, gaming businesses and their trade associations have
sponsored, on their own, problem gambler help services.
But
the 1997 Legislature funded a study of gambling in Montana to be ready
for the 1999 session. That study, conducted primarily by the Bureau of
Business and Economic Research at the University of Montana, provided
public policy groups and lawmakers scientific information quantifying
the extent of the problem of pathological gambling in Montana.
The
study found that about 3.6 percent of Montana adults have experienced a
gambling problem in the last year including "past year problem
gamblers"--those who have had at least one gambling problem during the
past year (2 percent)--and "past year probable pathological gamblers
--those who may have gambled pathologically during the past year (1.6
percent )."
A
1998 study commissioned by the Montana Legislature found 2 percent of
the state's population were "past year problem gamblers" and 1.6
percent were "past year probable pathological gamblers."
The
study also said Montana problem gambler rates rose between a 1992 study
and the 1998 study, up from 2.2 percent in 1992. While the percentage
increased, the study noted "Montana's overall problem gambler rate is
similar to other states--"
But it is widely acknowledged that
the state of the science in determining problem gambler prevalence
rates in 1992 and 1998 was primitive and in need of improvement. Since
then, the primary screening tools have been extensively revised to
yield more scientifically accurate results and, when applied, have
found earlier statistics and studies tended to overstate the problem.
Games
problem gamblers are most likely to play weekly are scratch tickets and
video gaming machines. They are also likely, though less so, to play
the lottery, bingo and keno weekly.
Males make up 47.1 percent
of problem gamblers; females 52.9 percent. A breakdown by age shows
31.4 percent of problem gamblers are 40 years old or older; 34.3
percent are 30-39 and 34.3 percent are 18-29.
More than two
out of three problem gamblers are married while 72.2 percent have high
school diplomas and some college; 91.3 percent of them were employed or
out of the work force while 8.3 percent were unemployed; about two out
of three had incomes of $15,000-$50,000 and 11.8 percent earned over
$50,000 per year.
The study concluded, since problem gamblers
were widely distributed over demographic categories, help services
should be widely targeted, too.
About 10 percent of problem or
pathological gamblers have filed for bankruptcy (about one-third of one
percent of the adult population).
The study compared crime rates
in Montana cities against crime rates in similar cities in states that
have no gambling. When it did so, the study concluded that "Montana's
overall crime rate increase is not any higher than the increases in the
matched cities with little or no legal gambling."
In fact, in
almost three-fourths of the specific comparisons carried out, crime
rates rose more (or decreased less) in the matched cities (with no
gambling) than in the Montana cities.
The study, when using a
different statistical approach called "regression analysis," concluded
problem gambling cannot be correlated with arson, forgery, fraud,
embezzlement, domestic abuse, motor vehicle theft, stolen property,
simple or aggravated assault, prostitution, illegal gambling,
disorderly conduct, murder, rape or sex, drug, family and liquor
offenses.
Gambling was statistically correlated with vandalism,
burglary, larceny, driving under the influence, weapons offenses and
robbery.
However, crime rates in these categories have all
declined since the study was completed, even as gambling activity has
increased.
No further studies on problem gambling have been conducted since the 1998 study.

The
1998 Montana study found Montana's rate of problem gambling was lower
than some states, higher than others, but about in the middle of the
pack.
Source: Special Reports I,
published and
distributed to 180,000 households state-wide, winter 2001 by
Continental Communications, 125 W. Granite St., Suite 102, Butte, MT
59701; Montana Gambling Study Commission report to the Montana
Legislature, 1998.