Gambler’s Math

by ND Grover

Gambler’s Math is a fascinating exercise in abstract mathematics. It is like calculus, few people really understand it and the rules are very vague and subject to change depending on the needs of the gambler to justify his current situation.

With Gambler’s Math, in it’s most basic form, only wins are counted. No matter how much money is put in, the cost of travel or other expenses are not deducted from the final tally.  Gamblers use magical thinking in determining their wins.

Fascinating, fascinating math. Unfortunately, the State of Oklahoma has used Gambler’s Math in calculating the benefit from legalized gambling.  The negative social costs, infrastructure improvements, costs of debts, bankruptcy, crimes, emotional costs to families, costs for treatment for problem gamblers, etc. were not factored into the equation.  The push to approve legalized gambling and the Education Lottery failed to warn the public of the negative aspects that are known to occur with legalized gambling. 

The amount of monies generated by Tribal Gaming Compacts has, thus far, fallen far short of expectations, this is partially due to the Tribal Casinos not converting machines to the type of machines and games that require the Tribes to pay the State part of the revenue generated.  It was really quite brilliant on the part of the Tribes, although possibly not intentional. They managed to solidify acceptance of casino gambling as a form of entertainment in the public’s eye, leading the public to believe that part of the money spent in the local casino would be returned to state coffers, while knowing that unless they installed certain types of machines and table games, that they would not have to share any of their revenues.

For example:

                               Gas $12.00

                               Food 15.00

                               Hotel 55.00

     Money in machine 700.00

                                     782.00

       Money cashed out $142.00

Now for most of us we would determine that we has spent (or lost) $640

The gambler determines that he has WON $142.00. He will tell all his friends and coworkers about how much he won. The frightening thing is that he really believes that he left a winner.

The State has also used this type of deceptive calculations to derive the stated benefit from legalized gambling.

Copyright 2007

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