Friday, September 5, 2008

Gambling as Entertainment?

Is Gambling entertainment, or just gambling? The Southtown Star article mentions that leisure activities are getting more costly and a gambling outing can be just as enjoyable, with the bonus of possibly winning some money in addition to having a good time.

The author does mention that gambling can get out of control, and become a huge problem in one's life. No argument there. Moderation and responsibility are important. The anti-gambling crowd uses the examples of people that fall into trouble as a means to try and outlaw or limit gambling expansion, but Prohibition ultimately shows the pool logic of trying to stop people from doing what they want to do that doesn't directly impact others. If 6% of the population has a drinking problem, and we don't outlaw alcohol, why outlaw gambling if 1% of the population has a gambling problem?

What I found interesting in the article is the implied comparison between an "entertainment" night out and a "gambling" night out. Could they really be similar in terms of cost? What follows below is a hypothetical comparison of an evening for two. One evening is a typical movie date and the other is a gambling date.

The movie date consists of a dinner for two at a casual dining restaurant, followed by a movie and a nightcap of a couple of drinks at a local pub. The gambling date consists of a dinner for two at a tribal casino buffet, followed by two hours of slot wagering on a 5-line nickel machine (each person playing one machine), ending with a nightcap of a couple of drinks at a local pub. I don't include the cost of gasoline to and from the venues, but we'll treat them as equivalent for this exercise.

Movie Date

Dinner for 2 (incl tax/tip) $60 - 1 hour
Movie Tickets for 2 $15 - 2 hours
Movie Snacks (1 popcorn, 2 sodas) $8
Nightcap (2 drinks each) $20 - 1 hour

Total cost $60+$15+$8+$20=$103
Total time: 4 hours

Gambling Date

Buffet Dinner for 2 (incl tax/tip) $45 - 1 hour
Gaming Play - 2 hours
5-Pay line nickel slot machine
5 lines played @ 6 plays/minute
Payback - 92%
Theoretical loss / minute - 12 cents
Theoretical loss / hour / machine - $7.20
Each person plays one machine
Nightcap (2 drinks each) $20 - 1 hour

Total cost - $45+($7.20*2)*2+$20=$93.80
Total time: 4 hours

So, yes, it is possible to gamble at a higher wager level and for a longer period of time, but given this scenario, a gambling evening can be as lengthy of an escape as typical leisure activities, at a comparable cost. And with the gambling activity, the possibility exists that you can actually win something, possibly making the gambling date very inexpensive indeed.

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