Standard 12, Module 12.1 “Risky Business” Gambling Standard 12, Module 12.1 “Risky Business”

What Gambling Is Exciting Challenging Some think it’s fun, some think it’s upsetting It’s a form of entertainment Risk Based on LUCK Can create financial losses place into budget as entertainment

Examples Lottery Bingo Slot machines Poker Black jack Roulette Horses Sports

Statistics A small minority (3%) become highly addicted and wreck their personal finances. 20% of all compulsive gamblers file for bankruptcy after maxing out their credit cards One-third will lose their jobs 4-8% of teens have gambling problems 10% at risk Male more likely than female

How to Spot a Problem Gambler Always thinking about gambling, urge to gamble Bets more money to keep the thrill Cranky when cutting back Lying to hide Betting through illegal activity Trying to win back money with more gambling Using it as an “escape” Making loved ones unhappy Relying on others for monetary help Not able to stop/can’t control gambling Seek professional help if you’re addicted

BENEFITS of Gambling Gaming industry earnings $100 billion AFTER paying out winnings Online gambling accounts for over 10% of industry earnings Earnings provide jobs for many peoples In OK, gaming earns $2 billion annually and employ thousands of people and provide revenue for local communities

COSTS of Gambling Casinos take revenue from other businesses in the area Casinos can discourage other businesses from being located near them (if you’re spending money at a casino, you won’t have money to spend elsewhere) Money spent on lotteries tend to reduce income levels by 5%, taking away money from food, rent, utilities, etc.

Probability - how likely it is for something to happen The Odds of Winning Probability - how likely it is for something to happen Example: if you pull one card out of a deck of cards, what is the probability that you’ll draw an ace. 4 out of 52 52 cards in a deck, 4 aces What’s the probability of getting “tails” if you flip a coin? Best odds of winning: blackjack/21 Casino has a better shot at winning than you

Independent vs. Dependent Example: flipping a coin Probability of tails does not change no matter how many times you flip the coin Example: playing poker Each hand is dependent on the previous If you get an ace in the first hand, the probability of getting another ace is dropped to 3/52 Another example: powerball

Predictability You have some knowledge about the choices you make Example: if you know a mutual fund has a good history of increased value, you can make some predictions about the future value of the fund Weather forecasters rely on predictability They know the chance something will happen based on current conditions