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Example research essay topic: Middle And Upper Lottery Ticket - 1,692 words

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Policy-makers are assessing the advice from Kenny Rogers, "You got to know when to hold 'um, know when to fold 'um, know when to walk away and when to run. " They are trying their hand at new and old forms of gambling in the hopes of generating additional revenues. One of the revitalized ideas of the past is to legalize gambling on historic riverboat replicas. Yet riverboat gambling won't be restricted to the Mississippi, but will appear in towns like Gary, Indiana and even our own Jefferson City. Even New Mexico has explored a proposal to float a casino on a dammed section of the Rio Grande.

These ideas demonstrate policy-makers attempts to satisfy taxpayers revolt while maintaining the need for increased revenues. Riverboat casinos are on the minds of policy-makers and citizens alike. This policy has passed through the Missouri legislature; and voters passed the idea by a large margin in a statewide referendum. Soon people will be boarding these vessels resembling historic steamboats of the past in the hopes of winning a return on their investment.

By state statute this could mean as many as 20 riverboat casinos floating Missouri's waters. At least seven riverboats licensed to operate gambling are expected to hit the water early this year. We will have to wait and see what affects this policy will have on revenues and Missouri residents. However, we can look to other states that have already implemented riverboat gambling to see what promises have been fulfilled and what problems have transpired. There is little debate that these riverboats, floating casinos as they are sometimes referred, will produce some revenues without relying on higher taxes. A large majority of Missouri voters support the idea of riverboat gambling.

In fact, voters all across the Midwest seem to support the notion that gambling is fun entertainment and comes at a cost they are quite willing to pay. Staggering economies brought on by the recession have pressured policy-makers to find a means of stimulating growth in towns all across the nation. Iowa legislatures, prompted by the farm crisis of the 1980 s, were first in discovering riverboat gambling as a resource to stimulate growth, (Greenberg, 1991). I admit it is tempting to support such a means of generating revenues, after all, the majority supports it.

But policy-makers must ask, "Can we depend on riverboat gambling as a stable source of revenues and is it really painless revenues we will be generating?" . Of course, the answer is a resounding no! Clearly, states should not be in the business of operating casinos. Even though the amount of revenue generated by state sponsored gambling is small it is foolhardy to rely on unstable sources of income in place of taxes.

There are many other reasons I can not support this policy and I will discuss each in detail. I do not support state-sponsored casino gambling, but there are some compelling arguments for its establishment. I will attempt to point out both sides of the argument while ultimately showing the costs will not outweigh the benefits. First, it is important to discuss the origins of casino gambling and how it gained its recent acceptance among the public. Lotteries were the driving force in changing the attitudes of the public about gambling. New Hampshire instituted the first state lottery in 1964.

Many other states quickly followed suit. In the late 1970 s New Jersey approved casino gambling in Atlantic City, mostly to bring in tourism and lift the tax burden. The mood was set for other states to pass similar legislation, but repeatedly states voted down proposals for casino gambling. It was not until 1989 when South Dakota voters approved a measure to bring casinos into the landlocked town of Deadwood that other states began to consider casino gambling. Even though Deadwood now operates casinos, the idea of state sponsored casinos on dry land has not gained the wide approval of gambling on water. Some experts believe gambling is cyclical, (Hansen, Second, 1991).

Professor of law at Whittier College, I. Nelson Rose, predicts state operated gambling will encounter a mass of scandal. Public dismay will then mandate outlawing gambling once again. If history repeats itself, gambling will once again be viewed by the public as an unacceptable act. The state will then have to find a new source of revenue or hope people will support paying higher taxes in place of the loss in gambling revenues. Revenues from gambling are variable, meaning one year revenues may be up, but the next year revenues might be down.

One reason for its variability is that it is not recession-proof. Riverboat gambling could suffer significant loses in revenue during economic downturns. In the down years states may have to cut spending to make up the difference. More importantly, this shows that states can not depend on this money when they need it the most, during hard times. The message state sponsored gambling sends to taxpayers can also be damaging. The lottery, for example, has provoked much controversy.

The public views the lottery as a means of supporting education. In fact, eight states actually earmarked lottery profits for education, (Weiss, 1991). The public's perception is states are growing rich from lotteries; therefore, funds from other sources to support education are not needed. Politicians have platformed on this public perception of saving money by cutting education spending. The end result for some states is that education actually receives less funds after lotteries are operating, (Weiss, 1991).

If riverboat gambling is sold on the same premise as lotteries, I speculate these casinos will have the same effect. Even if the public perceives riverboat gambling as a big money maker for the state the tax revolt may be even stronger. States must then be very careful in how they sell this idea to the public. But so far it appears that states are promising increased revenues, exploding development and jobs, jobs, jobs. There are many other ramifications of state sponsored gambling, especially riverboat casinos. Gambling is in question as being a regressive form of taxation.

Much of the opposition to state sponsored gambling is due to the belief that gambling taxes the poor and uneducated more than the rich and wealthy, (Weiss, 1991). Studies show that the middle classes and the rich do most of their risk-taking in the stock market or buying and selling bonds. This type of risk-taking offers a greater return on their investment. America's lower classes do not have the capital to invest in such risk-taking so they gamble in state lotteries, offtrack betting and in casinos. For lower income individuals, gambling is viewed as an avenue to make it to the top, or achieving the American dream. Lower income groups are more likely to gamble on a more frequent basis than middle and upper income groups since this is perceived as their easiest way of achieving wealth.

Middle and upper income groups motivation for gambling is more for entertainment rather than the hopes of achieving big bucks, (Eadington, 1972). It is likely that lower income individuals will attend riverboat casinos more frequently. The entrance fee to get on a riverboat may curb some lower income groups from frequent visits. A lottery ticket can be purchased for as little as one buck while stopping off at the local convenience store. However, the fee is only seven dollars to get on the Alton Belle riverboat in Illinois and that comes with no limits on gambling. For many gamblers this is a small investment on their chance of winning sizable profits.

Advertising for state sponsored gambling targets the lower classes which adds to the argument that gambling is a regressive tax. The Illinois lottery was charged with targeting the poor because of a billboard imposed in one of Chicago's poorer neighborhoods. The billboard displayed a lottery ticket and read, "Your ticket out!" . The idea sold is a quick scratch of a lottery ticket can make dreams come true.

As the Illinois lottery demonstrated, state advertising of gambling operations encourages the poor to spend money they cannot afford or would be better off investing elsewhere. The odds of winning are rarely advertised to the gambler. In fact, the odds of becoming rich from simple hard work is greater than winning it big in state lotteries or on riverboat casinos. The message sold to attract gamblers to riverboats and lotteries is the same, "This is your chance to get something for nothing." Advertising for riverboat gambling does not seem to be as aggressively targeted to the lower classes and those prone to gamble. So far riverboat gambling targets the weekend vacationers, or the whole family. States are hoping to draw in tourists from other states for an excursion on their riverboats.

Even though much of the advertising seems to be packaged as family entertainment, Illinois does not allow individuals under the age of 21 on their boats. This does not sound like great fun for the whole family. Missouri has mandated no more than 50 percent of the riverboats may be set up for gambling purposes, but this percentage does not include the wheelhouse, the engine room, or staff quarters. Those under 21 will not be allowed in this area. Again, with such a large portion of the boat set up for gambling, a family may not find these boats a great way for the family to spend time together. States with riverboat gambling are expecting to reap benefits in two ways.

The first is to gain revenues in place of raising taxes. And secondly, they want to bring some new life to economically struggling river towns. Certainly, these are enticing promises. Riverboat gambling has the allure of attracting businesses and money into poor economies. Supporters believe it will bring in millions of dollars for riverfront development and renovation, while creating new jobs and attracting tourists. In 1989, South Dakota legalized casinos on dry land in the small town of Deadwood.

They have experienced between 800 and 900 new jobs due to the casinos just in Deadwood. The Illinois legislator, Denny Jacobs, estimated about 2, 500 jobs will be created in his state...


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Research essay sample on Middle And Upper Lottery Ticket

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