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GAMING ODDS STACKED AGAINST NEW YORKERS

By Lenny Palumbo

The New York State Legislature recently voted in favor of a constitutional amendment that would allow seven Las Vegas-style, non-Indian-owned, private casinos. The amendment will need to be approved by the Legislature again and then by voters to become law.
 New York State’s hypocrisy regarding the prohibition of gambling may be coming to an end.
 Lotteries have been held in New York since the 19th Century to raise revenues for various needs. But it was in 1967 that voters approved a constitutional amendment authorizing a government-run lottery. Its official slogan: "Your Chance of a Lifetime to Help Education" accompanied the mandate that funds be "applied exclusively to, or in aid or support of education."
 About $7 billion was wagered with the New York lottery last year. About $4.1 billion was paid in prizes (59.4 percent) and $2.9 billion (31.3 percent) was contributed to education.
 For every dollar gambled on lotteries, people lose about 40 cents. It might be said the lottery system is an excellent method of taxing the poor – in support of education - at the 40 percent tax bracket. In any event, no one can deny that, since the lottery is entirely voluntary, it is a far better method than involuntary taxation.
 The success of the lottery led former Gov. Robert Wagner’s successful proposal of Off Track Betting in 1964 that was intended to “provide revenues for the support of the government… and promote the public welfare.”
Speaking of OTB, Tuscarora businessman Joseph “Smokin” Joe Anderson has pitched a plan to New York State development officials for an OTB parlor, cigar lounge and smoke shop in downtown Niagara Falls. His idea is being considered by the USA Niagara Development Corp.
 “This type of retail is well-needed along Old Falls Street,” said Doug Williams, a spokesman for Mr. Anderson. “This will add more critical mass, more excitement, and extra length of stay for visitors to Niagara Falls.”
Critics say that developing an OTB and a smoke shop in that prime location, a location which is in effect the corner of Main Street and Main Street, and which requires the giving of some public land to Mr. Anderson, is one of the poorest choices for downtown development ever conceived since Urban Renewal. OTBs are a relic of the past.
 Whether that is true or not, it is true that few gambling operations have been as unsuccessful as OTB. In 2009, former Gov. David Paterson signed an executive order requiring OTB to file bankruptcy. “OTB has hemorrhaged money and has been unable to be directly accountable,” charged Gov. Paterson. The following year, New York City’s OTB operation was shut down completely. 
 The prospect of thousands of novices squandering vacation cash might be exciting for Mr. Anderson and co. but for those tempted to play the ponies it’s undoubtedly just another ruse designed to get more of their money. The ten percent vigorish imposed by the state makes the odds decidedly poorer than betting at the track.
 It is hard enough to make money betting on horses as anyone who has attempted to study the Daily Racing Form knows. There are just as few pros that make money betting on horses as there are those who win betting on sports. 
Like the amateurs who blow their dough at the track, those that purchase lottery tickets are worse off. They are simply throwing money away.
 It’s doubtful that those who play the “numbers” or “Quick Draw” know how heavily the odds are stacked against them when they indulge in classic “sucker bets.” The odds of winning cash when playing “Take Five”, for instance are 1 in 100, and 1 in 575,757 for the top prize.
 These odds make those offered by casinos seem generous by comparison. The following are the average “house advantages” for most casino games:
 Blackjack: .5%; Craps: 1.4%; Roulette: 5.3%; Slot machines: 15%; Keno: 25%. The odds for most state lottery games are approximately 40%.
 That’s what makes the government’s long-standing prohibition against gambling so hypocritical. For decades, federal and state governments have permitted their own forms of gambling in which there is virtually no chance of long-term success while outlawing games with better odds- where people of talent and skill can actually win money.
 Naturally, New York’s current proposed legislation designed to legalize gambling in the state will not include the best opportunity to make money wagering: Sports betting, where skill and knowledge aid the wise gambler.
 The state, like all sponsors of gambling, is betting on attracting mainly losers.

 

 

Niagara Falls Reporter www.niagarafallsreporter.com May 15, 2012