Government and the Transformation of the Gaming Industry

Government and the Transformation of the Gaming Industry

Richard A. McGowan

The book is divided into three parts. The first part focuses on the historical and cultural forces that have shaped the new gaming industry. The second part of the book analyzes how each segment (pari–mutuel betting, lotteries and casinos) competes in the new industry. The political and social implications of gaming are the focus of the final part, which concludes with a series of recommendations that will enable the industry, public policy officials and anti–gambling activists to construct policies that mitigate some of the problems associated with gambling.

Chapter 4: The States’ Favorite Form of Gaming: Lotteries and the Various Strategies for Conducting Lotteries

Richard A. McGowan

Subjects: politics and public policy, public policy


4. The States’ favourite form of gaming: Lotteries and the various strategies for conducting lotteries INTRODUCTION In Chapter 1, it was pointed out that gambling has been permitted by American society in varying degrees throughout its history but the level of toleration that gambling has achieved at present is at an all time high. One reason for this new found ‘toleration’ has been a change in the perception of what a ‘game’ is, and the types of games (namely games of chance) that have become the norm for American society. In the case of lotteries, the lottery’s ability to raise funds for ‘good’ causes has also contributed to this new-found tolerance of gambling. Hence the government’s need for additional revenue, and a particular society’s willingness to tolerate ‘gaming’ must always be taken into account when a lottery commissioner is formulating a ‘strategy’ by which it is hoped to operate a lottery. Before describing such strategies in detail, it would be helpful to first define what the word ‘strategy’ means in this situation. Although its Greek meaning, the ‘art of the general’, frightens many individuals because of its militaristic connotations, such a definition of strategy provides a very useful analogy for anyone who operates an organization, particularly a lottery. Before even beginning to make a strategy of defense or attack, a general must first be prepared to cover all flanks. Strategists for the casino industry have developed a ‘consolidation’ strategy. The development of this strategy was to take advantage of the...

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