Gambling: Impact on Work, Family, and Family Finances

1
Gambling Impact on Work, Family, and Family
Finances

• Tahira K. Hira, Ph.D., CFP,
• Professor, HDFS
• Iowa State University

2
Back ground

• According to Volberg studies (1995, 1989)
• since 1989 there has been a significant and
  substantial increase in the prevalence of problem
  gambling in Iowa.
• She concluded
• between 10,000 31,000 are currently probable
  pathological (compulsive) gamblers, and
• 33,000 to 62,000 Iowans are problem gamblers.

3
Objectives

• To ascertain the use of credit cards and level of
  credit card debt among gamblers.
• To ascertain the impact of gambling on work,
  family relations and family finances.

4
Sources of Data

• Quantitative
• 1086 participants of CCS Des Moines educational
  sessions
• Qualitative
• Six members of gambling anonymous group in Des
  Moines

5
Sociodemographic Characteristics

• Female 55
• Mean Age 38 yrs.
• Mean yrs. of edu. 14 yrs.
• Single 54
• Mean H.H. Size 3

6
Economic Characteristics

• Employed 64
• Mean Income 24,169
• Mean of credit cards 3 (Max 21)
• Mean credit card debt 7,082
• Had ATM cards 43
• Had consolidated loans 55

7
GAMBLING STATUS
Yes 55 No 45
8
Male/Female GamblersDifferences by Age

• 2 p lt .08

9
Male/Female GamblersDifferences by Marital
Status

• 2 12.87, p lt .002

10
Differences between Gamblers Non-Gamblers

• Income
• No. of Credit Cards
• Total Debt
• No. of Consolidated Loans
• Age by gender

Statistically Significant Differences
11
Mean Income

• Non-Gamblers 24,875
• Gamblers 23,656

12
Income

• 2 21.21, p lt .001

13
Number of Credit Cards

• 2 108.10, p lt .000

14
Mean Credit Card Debt

• Non-Gamblers 9,961
• Gamblers 13,055

15
Total Credit Card Debt

• 2 170.62, p lt .000

16
Gamblers Debt by Age

• 2 56.82, p lt .0002

1 1-1000 2 1001-5000 3 5001-9000 4
9,001-15,000 5 15,001 - 25,000 6
25,001 or more
17
Credit Card Debt Respondents without Income
Mean Debt Max. Debt Non- gamblers
3 7,767 32,000 Gamblers 7
11,526 55,000
18
Number of Consolidated Loans

• 2 56.82, p lt .0002

19
Number of Consolidated Loansby Age for Gamblers

• 2 49.08, p lt .000

20
Gambling

• How does it start ?
• Why do people gamble?
• How does it affect
• work
• personal and family life
• family finances

21
Qualitative data

• Responses from six members of gambling anonymous
  group
• Questionnaires and personal interviews

22
How does it start?

• I started out maybe a couple of times a week,
  towards the end I was gambling almost every day.
• I started with playing for small amounts of
  money (2 to 5), and it got to the point I had
  to go to the bank before going to play golf. I
  had to have more money just in case I lost.

23
Gambling and Finances

• I generally didn't walk into Prairie Meadows
  with less than 3,000...
• I would cash advance my credit cards, it was
  costing me 95 to get 3,000.

24
Gambling Debt...

• I had about 25,000 in credit card debt, two
  small loans for about 6,000,
• I took out 1,000 from my life insurance
  policy, and
• borrowed 6,000 from my two sisters.
• I owed 37,000 on four credit cards.

25
Impact of Gambling on Family Life

• it was to the point where I considered taking my
  life...I was worth more dead than alive...its
  then I realized I had to change...
• family relations were destroyed irreparably,
  principal casualty was lack of trust...
• I isolated myself from everyone..
• I ended up in divorce...

26
Gambling and Work

• I stole from my employer...
• I used to call in sick, then go to the
  track...if I had lost a bunch of money the night
  before believe me I was not thinking about work
  that day....

27
Time that was spent on gambling...

• When I quit gambling, I had so much time on my
  hands.....
• I discovered the library,
• I took my kids to the botanical gardens for the
  first time,
• I do things with my wife,
• I enjoy going home,
• I enjoy going to work.

28
Conclusion...

• Gambling is an important issue
• It effects family well-being
• economic and overall
• it also influences work place
• there is no argument that
• more people in Iowa are gambling, and
• more people are facing problems due to gambling.