Statewide Interactive
Originally aired February 2, 1996
 PERSPECTIVE
The Costs of Gambling

Reported by Donna Wilson, STATEWIDE Correspondent

The Nebraska lottery began in 1992. It was the last form of gambling Governor Nelson said he would approve. Just this week state lawmakers revisited gambling. Some want to make slot machines and other electronic gaming legal. There's a group of people who, if gambling expands, could put themselves and the state in dire straits. We talked to some compulsive gamblers and the people who help them.
   One recovering gambler took issue when we referred to gambling as "gaming." He said it's not a game to the estimated 5% of people who are addicted to the action. With expanded gambling in Iowa and several other bordering states, Nebraska will have to treat its compulsive gamblers whether or not the state approves more gambling. Those who work with recovering and addicted gamblers say it's just a matter of time before Nebraska's numbers grow. If it's the local card game or crossing the border to play the slots, some say gambling is already Nebraska's problem.
   [Recovering gambler:] "The third one is, don't tempt myself. I just don't go near gambling. I heard Rich talking about it earlier. He said if I go to a gambling joint, I'm going to get juiced. I will get juiced."
   At this Gamblers' Anonymous meeting in southeastern Nebraska, recovering gamblers talk about how they hit rock bottom all because of their compulsion -- gambling.
   [Gambler:] "You're in the million mile stretch with that first step. Thank God you're here."
   It's women, it's men, single people, married, blue collar, and white collar. They're all trying to stay away from the action, but they got here on different paths.
   [Jerry Bauerkemper:] "We've had, I think, two people come in that have played the lottery into bankruptcy. We've had a couple of people come in with keno. We have the vast majority of people coming in with slot machine problems or sports betting."
   Jerry Bauerkemper works for the state Compulsive Gambling Commission. He passes outs the 1% of funds which aids compulsive gamblers. That money comes directly from the lottery, which in Nebraska is the only form of gambling mandated to help gamblers.
   [Donna Wilson:] "Sounds like a catch-22. The State introduces the lottery and the State has to cover the problems that are associated with the lottery."
   [Bauerkemper:] "I agree. It is."
   What about when gambling is feeding the kitty or paying for itself? The lottery was set up for improvements the State might not otherwise be able to cover financially. Almost 50% [49.5%] goes to educational innovation. Another quarter to the Nebraska Environmental Trust Fund while 24.5 goes to the Solid Waste Closure and the final 1% to compulsive gamblers, totalling $131,331. So far the folks in charge think the money is well spent.
   [Bauerkemper:] "We're helping them not commit suicide and we're helping them not fraud the insurance company, and we're helping them to not go bankrupt, and we're making them pay back everybody. I think they're getting a lot of bang for their buck.
HR>[Matt Pelzer on the phone:] "How did you get our number, from the keno ticket or where? On the back of the keno ticket? Okay. How bad you stuck, babe? About 10 big ones?
   Matt Pelzer is a recovering gambler himself. For 11 years he's been free from the chance but before then...
   [Pelzer:] "In one 24-hour period, I probably -- through the book maker I probably bet 2 or 3,000 in the course of a day's activities. I wasn't a big better. I wouldn't bet the 10,000 or 20,000 because that was too terrifying for me. It was heavy."
   As a counselor for the Nebraska Council on Compulsive Gambling, Pelzer is alarmed at the rate of calls he's getting. He believes the amount of money Nebraska sets aside to trip up compulsive gambling may not be enough, especially when gambling is sprouting up all around Nebraska.
   [Pelzer:] "We're not a very big state, population-wise but we sure have gambling all around us, you know. Out of the six bordering states, the only one that I can think of that doesn't have any form of real exotic gambling would be Wyoming and Kansas. Missouri's got riverboats. Iowa's got riverboats. South Dakota has stuff up in Deadwood. We're in a real problem there."
   But Nebraska has held the line thus far on expanding gambling. Even as the legislature looks at the issue more seriously, keno, pickles, bingo, and the lottery are the state's only legal forms. But the money to combat all those forms of compulsive gambling only comes from one source of revenue, the lottery. Back to Jerry Bauerkemper who worked with gamblers in Iowa before Nebraska.
   [Bauerkemper:] "With increased gambling opportunity comes increased problems. The state of Iowa had 2.7% problem gamblers in 1989 and they have 6.4% now and the difference is they took on gambling -- they took on additional gambling."
   If one doesn't have compassion, why should the rest of us care about gamblers? Mac McKenzie also counsels gamblers. His organization was one of the first groups to receive a grant to help Nebraska's compulsive gamblers.
   [McKenzie:] "For every dollar of revenue produced by gambling, there's $3 in social costs. Social costs can be: Did they spend the car payment? Did they make their mortgage payment? Do they pay for car insurance?"
   Mac and his staff counsel about half a dozen recovering gamblers. He says they're just learning to deal with a largely hidden problem, but if they're testing their wings, the gambling industry is in full flight. He believes the industry tends to be a public relations machine.
   [McKenzie:] "You don't see advertisements for a certain type of drink with somebody laying in the gutter throwing up on his shoes. You know, you see the fun exciting things."


Sue knows where she'd be were she not recovering.
   [Sue:] "I'd be in a candy store, are you kidding? I know where I'd be."
   [Donna Wilson:] "Where would you be?"
   [Sue:] "I'd be at Bluffs' Run. I'd be doing -- I'd be doing it. I'd be in there. I'd try all different kinds of ways to gamble."
   Sue says it was the zeros or the dollars that kept her gambling. A form of control, she says 24 hours a day she could gamble. Her hook was keno. It became her loved ones problem, too.
   [Sue:] "I put my life and everybody in my life on the line when I placed a bet because I knew I'd be broke."
   Somebody's making money. Mac McKenzie says he is neither for nor against gambling, but he is opposed to gambling as a form of economic development. He cites one of many examples -- Lorton, Nebraska.
   [McKenzie:] "To develop the need for this quick fix to our economic problems. It's a fine form of entertainment. And let's let it be a fine form of entertainment, but we need to be prepared to pick up the pieces of that 5% that does not deal well with gambling."
   But will the sun set or rise to the east in Iowa? Gambling interests will bank that it will.
   [Jeff Terp, Ameristar Riverboat:] "There's never been a study to say what is a social cost? In fact, turn it around the other way. If we're taking an area that has XYZ unemployment and we lower that in half, what is the social benefit we're creating by putting more people to work, creating higher wages, and creating more economic development in the area? If we take somebody right now off welfare, put them in our casino working, haven't we created a positive social benefit?"
   As Vice President of Development for the Ameristar Riverboat, Jeff Terp says the boat will employ 1,400 people with a payroll of $33 million. He says one of his company's biggest concerns is compulsive gambling.
   [Terp:] "Actually the truth be known, the number one concern we have facing our industry today is what we call compulsive gambling. We don't grant the kind of credit that many people think we do so that somebody mortgages the farm or mortgages the house. Now you tell me at a keno parlor, at a lottery terminal, at the horse track, does any of that happen? Absolutely not."
   Across the interstate is Bluffs' Run Casino where in the first nine months of operation, they made $43 million. Sixty to 80% of it came from Nebraska. They say they're proud to contribute to the compulsive gambling fund -- Iowa's Compulsive Gambling Fund.
   "Now in terms of the people in Nebraska, they're certainly welcome to come over to the Family Service Office in Council Bluffs and seek help if they so desire."
   [Donna Wilson:] "There's no link, there's no line of communication between the Iowa gambling industry here in specific and Nebraska Compulsive Gambling?"
   "I can't speak for the local service providers in terms of counseling centers and such."
   But gambling is a multi-million dollar business. The casino at Bluffs' Run has made dog racing viable again. They also say it's not at all cost, that they're concerned about people overdoing it.
   "We really encourage people who have the disposable income and the leisure time to come in and enjoy our facility and to bring the kinds of amounts that they can afford to lose and just chalk it up to good old entertainment."
   For the estimated 5% of the population who have problems with gambling, it's anything but entertainment.
   [Pelzer:] "It doesn't make sense. I mean, people just don't get it. It isn't an easy fix for the economy, for the government. It isn't an easy fix for the society. I just hope that a lot of people realize that it not only affects the compulsive gambler like myself but it affects everybody."
   "As far as the states working together, I think it's a whoever gets there first kind of mentality. Whoever gets the money first wins. And Iowa has the money right now."
   Reporting for Statewide, I'm Donna Wilson.

Captioning by Nebraska Captioning Center, Lincoln, Nebraska .