Hira, CFCS Gambling Conference 31, 1996 1 Gambling: Impact on Work, Family, and Family Finances Tahira K. Hira, Ph.D., CFP, Professor, HDFS Iowa State

Hira, CFCS Gambling Conference 31, 19961

Gambling: Impact on Work, Family, and Family Finances

Tahira K. Hira, Ph.D., CFP,Professor, HDFS

Iowa State University


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.”


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.

Objectives


Sources of Data Quantitative:

1086 participants of CCS Des Moines educational sessions

Qualitative: Six members of gambling

anonymous group in Des Moines


Sociodemographic Characteristics

Female 55%

Mean Age 38 yrs. Mean yrs. of edu. 14 yrs. Single 54% Mean H.H. Size 3


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%


Yes = 55%

No = 45%

GAMBLING STATUS


Male/Female Gamblers:Differences by Age

Male(N= 294)

Female(N=306)

Age in Years % %

Less than 30 24 32

31-40 38 32

41-50 21 14

51-60 9 9

61 and older 9 14

2 = p < .08


Male/Female Gamblers:Differences by Marital Status

Male(N=294)

Female(N=306)

Marital Status % %

Single (includingwidowed anddivorced)

45 59

Married 55 41

2 = 12.87, p < .002


Differences between Gamblers & Non-Gamblers

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

StatisticallySignificantDifferences


Mean Income

Non-Gamblers $24,875

Gamblers $23,656


IncomeGamblers(N=600)

Non-Gamblers(N=483)

Income % %

$0 13 22

$1-10,000 15 13

$10,001-20,000 21 19

$20,001-25,000 18 12

$25,001-30,000 21 19

$30,001 or more 12 15

2 = 21.21, p < .001


Number of Credit CardsGamblers(N=600)

Non-Gamblers(N=486)

Number of Credit Cards % %

0 26 56

1-2 31 25

3-6 25 9

7 or more 18 10

2 = 108.10, p < .000


Mean Credit Card Debt

Non-Gamblers $ 9,961

Gamblers $13,055


Total Credit Card DebtGamblers(N=600)

Non-Gamblers(N=483)

Total Debt % %

$0 25 63

$1-1000 22 15

$1001-5000 19 8

$5001-9000 5 2

$9001-15,000 6 3

$15,001-25,000 7 3

$25,001 or more 16 6

2 = 170.62, p < .000


Gamblers’ Debt by Age30 & under

(n=168)31-40

(n=208)41-50

(n=102)51-60(n=53)

61 & older(n=69)

Debt Level* % % % % %

1 23 21 15 26 33

2 18 20 13 17 25

3 2 5 6 9 7

4 5 7 10 6 2

5 7 9 10 6 2

6 12 18 29 13 3

*1 = $1-1000; 2 = $1001-5000; 3 = $5001-9000; 4 = $9,001-15,000; 5 = $15,001 - 25,000; 6 = $25,001 or more

2 = 56.82, p < .0002


Credit Card Debt Respondents without Income

% Mean Debt Max. DebtNon- gamblers 3 $7,767 $32,000

Gamblers 7 $11,526 $55,000


Number of Consolidated Loans

Gamblers(N=600)

Non-Gamblers(N=486)

Number of Loans % %

0 46 71

1 44 26

2 10 3

2 = 56.82, p < .0002


Number of Consolidated Loansby Age for Gamblers

30 & under(n=168)

31-40(n=208)

41-50(n=102)

51-60(n=53)

61 & older(n=69)

Number of Loans % % % % %

0 49 39 37 45 70

1 47 49 39 45 30

2 or more 4 12 24 10 0

2 = 49.08, p < .000


Gambling : How does it start ? Why do people gamble? How does it affect:

– work– personal and family life– family finances


Qualitative data:

Responses from six members of gambling anonymous group

Questionnaires and personal interviews


“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.”

How does it start?


“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.”

Gambling and Finances


“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.”

Gambling Debt...


“it was to the point where I considered taking my life...I was worth more dead than alive...it’s 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...”

Impact of Gambling on Family Life


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....”


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.”


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.

Documents

Hira, CFCS Gambling Conference 31, 1996 1 Gambling: Impact on Work, Family, and Family Finances Tahira K. Hira, Ph.D., CFP, Professor, HDFS Iowa State