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Gambling proponents dispute that problem gambling is unaffected by the availability of legal gambling opportunities—that is, they say that people will bet illegally on sports and other games in states without US casinos. Gambling opponents, however, cite recent reports showing that states that have had legalized gambling for longer periods of time tend to have more problem gamblers. In Iowa, for example, a 1995 Department of Human Services report found that problem gambling had more than tripled since riverboat US casinos were introduced—from 1.7 percent of the adult population in 1989 to 5.4 percent in 1995.

But even more worrying than these economic costs is the impact on problem gamblers themselves, opponents of legalized gambling say. Durand F. Jacobs, a professor of psychiatry at California's Loma Linda University, found that most of the people who commit crimes to support their compulsive gambling had no previous criminal records. More often than not, Jacobs reported, they had better-than-average school and work adjustment and above-average levels of attainment in education and employment. In 1994 Jeffrey Bloomberg, a South Dakota state's attorney, told a congressional committee, We have seen individuals who, prior to their exposure to gambling, had no criminal history, who were not junkies or alcoholics, many of whom had good jobs, who became hooked on slot machines and, after losing all their assets and running all credit resources to their maximum, began committing some type of crime to support their addiction.

Problem-gambling rates are now highest among the poor and men from alternative groups, but the growth of legal gambling is creating greater opportunities for women and young people to gamble. Some researchers call gambling the fastest-growing teenage addiction. According to Howard J. Shaffer, director of the Harvard University Medical School's Center for Addiction Studies, Young people are the only constituency who has experienced gambling that is both state sponsored and culturally approved for their entire lifetime. In studies he conducted, Shaffer found that by their senior year, nearly 90 percent of Massachusetts high school students had bought lottery tickets illegally. Another study cited by Shaffer found that two-thirds of a random sample of students at an Atlantic City high school had gambled illegally at the city's US casinos. Every month nearly 30,000 underage people are either prevented from entering or are ejected from Atlantic City US casinos.

The gambling industry has responded to allegations of problem gambling and to calls for restriction such behavior in several ways. While contesting the extent of the problem, the industry has shown a willingness to post warnings about the dangers of compulsive gambling and to fund research about the problem. As recently as 1994, Michael Rose, CEO of the Promus Companies, one of the country's largest casino operators, told the American Legislative Exchange Forum, a national conference of conservative political leaders, that in the new casino markets, the actual social impacts are minimal. The following year, however, the American Gaming Association stated it had addressed the problem by establishing a foundation to research treatment methods, to hold conferences and seminars, and to fund toll-free telephone hot lines for people to call when they get in trouble because of their gambling. Generally speaking, however, experts say that the industry does not feel it should have to pay for the treatment of gambling addiction.

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