History of Gambling in Wisconsin

Wisconsin’s legalized gambling began with a state sponsored lottery in 1987. Shortly thereafter, federal courts granted Native American Tribes the right to negotiate gaming compacts authorizing a variety of gambling activities on reservations and federal trust lands. Today, Wisconsin has 22 casinos – leaving no resident with more than a 2- hour drive to the nearest casino.

WISCONSIN GAMBLING EXPANSION TIMELINE

In recent years, Wisconsin Tribes have sought approval to build off-reservation casinos in Sheboygan, Kenosha, Beloit and Shullsburg and the state increased lottery advertising to $8.5 million annually. Efforts to legalize Daily Fantasy Sports (online gambling) continue in the legislature and would result in the largest expansion of gambling in state history.

April 1965 – Sweepstakes legalized by Wisconsin voters with the passage of a constitutional amendment.
April 1973 – Charitable bingo legalized by Wisconsin voters with the passage of a constitutional amendment.
April 1977 – Raffles legalized by Wisconsin voters with the passage of a constitutional amendment.
April 1987 –Lottery and pari-mutuel legalized by Wisconsin voters with the passage of a constitutional amendment.
1991 – Class III gaming compacts negotiated with 11 Indian Tribes resulting in 22 casinos across Wisconsin.
April 1993 -Gambling expansion prohibited per article IV of the constitution clarifying that all forms of gambling are prohibited except bingo, raffles, pari-mutuel on-track betting and the current state-run lottery and to assure that the state will not conduct prohibited forms of gambling as part of the state-run lottery.
2003 – Renegotiated compacts with Tribes giving them perpetual rights to expand and grow, allowing the casinos to run 24-hours a day and expand their scope of games – in perpetuity (forever).

Wisconsin has 11 (eleven) tribes which feature 22 gaming facilities. Yet there are no shortage of tribes looking to locate even more off-reservation gaming facilities. Nor is there a shortage of access – no one in Wisconsin has more than a 2-hour drive to the nearest casino.

CURRENT STATE OF GAMBLING IN WISCONSIN

The Ho-Chunk Nation Legislature approved $143 million in expansion in 2017 for four of the tribe’s six gaming facilities.
The 2017-2018 Wisconsin State Budget included a $1M increase in lottery advertising to increase the number of tickets sold annually with zero dollars allocated to gambling addiction treatment.
Proposed off-reservation casinos in Beloit and Shullsburg are pending approval from the Federal Bureau of Indian Affairs; and Sheboygan and Kenosha which linger around in hopes of a favorable political climate.
CAEG has successfully opposed bills to legalize Daily Fantasy Sports (online gambling) that have been introduced in the Wisconsin State Legislature in 2016 and 2017, and we will likely see its return in future legislative sessions. If passed, this would represent the largest expansion of gambling in our state’s history. Learn more here. (link DFS Fact Sheet)

CURRENT CASINO EXPANSION EFFORTS

Two casino proposals are currently in the works, with more to likely follow. We can also expect proposals for casinos in Kenosha and Sheboygan to gain new life in the future. The Ho-Chunk is proposing to build an off-reservation casino in Beloit, and the Lac du Flambeau are seeking to build a casino in Shullsburg.

The Ho-Chunk submitted its application to the Bureau of Indian Affairs’ regional office in Minnesota this spring after the Beloit City Council, Rock County Board and Ho-Chunk legislators approved an intergovernmental agreement. If Bureau of Indian Affairs’ approves the application, the final decision will be made by the Governor.

The Lac Du Flambeau submitted their application to the Bureau of Indian Affairs in the spring of 2013. If approved, the final decision will also be made by the Governor.

PROBLEM GAMBLING IN WISCONSIN

According to Wisconsin Council on Problem Gambling’s Fact Sheet, problem gambling has had the following impact on Wisconsin communities and its residents:

Approximately 333,000 Wisconsin residents have a gambling problem.
Calls to the Wisconsin Council on Problem Gambling’s 24-hour Helpline have increased 329% since 1996.
The 24-hour Helpline received 14,731 calls in 2014.
The average debt of callers contacting the Helpline is $46,967.
Female gamblers calling the Helpline have increased 91% since 1996.
Seniors and adolescents are at high risk to become addicted to gambling.
65% of compulsive gamblers commit crimes to finance their gambling.
Six to twenty percent of adolescents develop gambling problems.
Suicide rates are 20 times higher among pathological gamblers compared to non-gamblers.
People who have other addictions are at a higher risk of becoming addicted to gambling.
Women, children and older adults are among the highest risk groups. Read more here.

THE SOCIAL COSTS OF PROBLEM GAMBLING

Problem [PG] and pathological [PAG] gambling result in considerable expenditures to the gamblers, their families, employers, taxpayers, and multiple institutions. While the economic impacts are great, social costs are immeasurable.

$1,200: The annual cost per pathological gambler[1]
$715: The estimated annual costs per problem gambler[1]

Compare that to the annual financial costs per:

Smokers: $1,500;
Car crash: $3,600;
Person with mental illness: $2,300[1]
$39,000: The average cost to creditors per personal bankruptcy
$3,300: Excess lifetime costs of bankruptcy per pathological gambler
$1,600: Excess lifetime costs of bankruptcy per problem gambler

DEBT AND SPENDING PATTERNS OF PROBLEM GAMBLERS

90% of pathological gamblers gambled with their paychecks or family savings[1]
30% of pathological gamblers reported gambling debts ranging from $75,000 – $150,000[1]
Over 60% of pathological gamblers reported borrowing money from friends/relatives to avoid credit problems; while 20% borrowed money from loan sharks[1]

WORK RELATED COSTS OF PROBLEM GAMBLING

$45 million: Estimated costs to US employers from gambling related absences[1]
The majority of PAGs reporting missing work to gamble (61%), half of them did so over 5 times per month[1]
50% of PAGs reported almost losing their jobs due to gambling, while 36% had lost their jobs[1]
15% of PAGs, and over 10% of PGs reported receiving unemployment benefits in the past year, compared to less than 5% of low-risk and non-gamblers[1]
Workplace Theft: reported by 37% of PAGs
Decreased productivity: 59% of PAGs reported difficulty concentrating at work due to a preoccupation with gambling and gambling debts[1]

DIVORCE RATES

The rate of divorce among PAGS and PGs is significantly higher (53.5% and 39.5%, respectively), than the rate among low-risk gamblers (29.8%) and non-gamblers (18.2%)1. PAGs have excess legal costs related to divorce of $4,300; while PGs have excess legal costs of $1,950[1]

This does not include direct costs of divorce like food stamps, housing assistance and child support which is estimated at $33.3 billion annually[1]

COST OF GAMBLING TREATMENT

More than 20:1-Benefit to cost ratio of gambling treatment. PAG is one of the most expensive illnesses to society, yet it is also one of the least expensive to treat and the most “curable”[1]
Roughly 3% of PAGs seek gambling treatment each year (excluding Gamblers Anonymous) [1]
$1,000: Estimated annual cost of gambling treatment per PAG who obtains treatment[1]
$30: the annual cost of gambling treatment per PAG[1]

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1 National Opinion Research Center (1999). Gambling Impact and Behavior Study. Retrieved May 1, 2008 from http://www2.norc.org/new/gamb-fin.htm
2 Grinols, E. L. (2004) Gambling in America: Costs and benefits. NY: Cambridge University Press.
[1] Schramm, D. G. (2006). Individual and social costs of divorce in Utah. Journal of Family and Economic Issues, 27(1), 133-151.
[1] Politzer, R. M., Morrow, J. S., Leavey, S. B. (1985). Report on the cost-benefit/effectiveness of treatment at the Johns Hopkins Center for Pathological Gambling. Journal of Gambling Studies, 1(2), 131-142. 2Grinols, E. L. (2004) Gambling in America: Costs and benefits. NY: Cambridge University Press.

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