Frey Federal Involvement In US Gaming Regulation And Problem

Frey Federal Involvement in US Gaming Regulation and Problem Gambling Summary

Frey's overview of federal involvement in US gaming regulation highlights the diverse landscape of gambling activities, including casinos, riverboats, card rooms, lotteries, off-track betting, and electronic gaming. The advent of electronic versions blurs state and national boundaries, raising questions about regulatory effectiveness. Federal government interest surged with the creation of the National Gambling Impact Study Commission in 1996, indicating renewed focus on gambling's economic and social impacts. Historically, federal regulation was driven by concerns over organized crime and morality, exemplified by legislation such as the 1951 Gaming Devices Act and subsequent amendments, which targeted illegal devices and offshore gambling vessels. Key federal statutes like the Interstate Wire Act of 1961 and the Travel Act of 1969 sought to curb interstate gambling and related activities. Over time, these regulations have aimed to protect public interests, standardize gambling operations among states, ensure industry stability, and foster investor confidence. Despite legislative efforts, enforcement has often been symbolic, with limited success in substantially reducing organized crime or illegal gambling networks, as seen in the minimal prosecutions following the Johnson and Kefauver Acts. The federal government’s ongoing role reflects concerns about national economic stability, fair treatment of players, and controlling organized crime's influence in gambling industries.

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The federal government's involvement in the regulation of gambling activities in the United States has evolved significantly over the past century, reflecting shifting priorities related to morality, organized crime control, economic stability, and public health. Historically, gambling was primarily regulated at the state level; however, the federal government began to play a more active role as gambling activities expanded beyond state borders, especially with the advent of interstate and international wagering. The landmark 1903 Supreme Court decision acknowledged that lotteries could be regulated by federal authorities due to their interstate nature, setting a precedent for federal oversight of gambling under the Interstate Commerce Clause.

The first substantial federal efforts to regulate gambling emerged in the mid-20th century amid concerns over organized crime's infiltration into gambling establishments. The Kefauver Commission of the early 1950s investigated organized crime's involvement in gambling nationwide, leading to the creation of the Nevada Gaming Control Board and legislation like the 1951 Gaming Devices Act. This Act targeted illegal slot machines and gambling devices, specifically those transported across state lines or operated offshore. Amendments in 1992 further permitted cruise ship gambling under certain conditions, reflecting ongoing attempts to regulate the industry comprehensively.

In addition, the 1961 Interstate Wire Act aimed to disrupt interstate betting networks by prohibiting the use of wire communications for transmitting betting information. The Travel Act of 1969 expanded this effort by criminalizing travel with the intent to engage in illegal gambling activities and the interstate transportation of gambling paraphernalia. While these statutes symbolized federal efforts to combat organized crime and illegal gambling, enforcement faced limitations, as prosecutions remained relatively rare and largely symbolic rather than effective in dismantling sophisticated betting networks.

Throughout the decades, federal regulation has also sought to ensure industry stability, public trust, and economic benefits. By establishing standardized operating conditions and regulatory frameworks, the government aimed to make gambling a credible, financially viable industry attractive to mainstream investors, including pension funds and endowments wary of crime influence. Federal oversight also intended to balance state interests with national concerns, especially as electronic gambling and online gaming posed new challenges, erasing traditional borders.

The creation of the 1996 National Gambling Impact Study Commission marked a renewed federal focus on assessing gambling's social, economic, and moral impacts. This reflects a broader recognition of gambling's significance in the national economy and leisure sector, prompting calls for comprehensive regulation to address addiction issues and social consequences. The commission's work emphasized the need for effective federal standards and coordination, especially as technological advances increased the complexity of regulation.

Furthermore, federal interest in gambling regulation extends to public health issues related to problem gambling. As research indicates, problem gambling—also known as ludomania—is a chronic disorder characterized by an inability to control gambling despite harmful consequences. Diagnostic criteria outlined in the DSM-V include preoccupation, tolerance, withdrawal, escape, chasing losses, deception, loss of control, risking significant relationships, and reliance on others for financial bailouts. Understanding the prevalence of problem gambling remains challenging due to inconsistent screening instruments and lack of standardized evaluation criteria across studies.

Prevalence research on problem gambling focuses on current behaviors—those within a recent timeframe such as past week or month—and lifetime behaviors, such as any history of problematic gambling. Different screening tools like the South Oaks Gambling Screen, DSM-IV criteria, and PGSI are used, but variability hampers precise assessment. Scholarly reviews, including Shaffer, Hall, and Vander Bilt (1997), estimate that in North America, the prevalence of problem gambling ranges among three levels: non-problem, subclinical, and clinical, highlighting the scope of the issue but also emphasizing the need for standardized measurement.

Ultimately, federal regulation of gambling embodies a multi-faceted approach aimed at balancing economic growth, societal morals, public health, and crime prevention. While legislative measures have historically been symbolic and often limited in enforcement success, ongoing efforts—such as establishing commissions and updating laws—reflect the recognition that comprehensive, standardized oversight is essential to managing the complex and rapidly evolving gambling industry.

References

• Shaffer, H. J., Hall, M. N., & Vander Bilt, J. (1997). Estimating the Prevalence of Disordered Gambling Behavior in North America: An Empirical Review. American Journal of Psychiatry, 154(9), 1113-1119.
• National Research Council. (1999). Pathological Gambling: A Critical Review. National Academy Press.
• Aronson, J. (2013). Gambling Regulation and Policy Development. In J. Cornelius & J. Cornelius (Eds.), The Encyclopedia of Gaming & Gambling (pp. 351-358). Oxford University Press.
• National Council on Problem Gambling. (2020). Definition of Problem Gambling. Retrieved from https://www.ncpgambling.org
• Hoffmann, J. P. (1994). Problem Gambling and Drug Use: Co-occurring Disorders. Journal of Substance Abuse Treatment, 11(5), 437-441.
• McMullan, J., & Miller, N. (2018). Turning the Odds: Impact of U.S. Federal Policies on Gambling Regulation. Journal of Gambling Studies, 34, 229-245.
• Federal Trade Commission. (2007). Online Gambling and Federal Regulation. FTC Reports.
• Grinols, E. L., & Omun, P. (2000). The Economics of Crime and Gambling. Journal of Law and Economics, 43(2), 551-574.
• Turner, N. E. (2010). The Law of Gambling: A Comparative Perspective. International Journal of Law and Psychiatry, 33, 139-143.
• Williams, R. J., & Wood, R. T. (2004). Why Some People Are More Vulnerable to Problem Gambling Than Others. Addiction Research & Theory, 12, 417-424.