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Do poor people gamble more than rich people?

Based on representative telephone interviews with nearly 5,000 people, ages 14 to 90, in the United States, the study found that problem gambling was twice as likely in neighborhoods with the highest levels of concentrated poverty compared to neighborhoods with the lowest poverty levels.

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People in poor neighborhoods are twice as likely to have gambling problems, study finds “Gambling may be viewed as one of the few opportunities for financial advancement, and perhaps provides the lure as a means for easily gaining money. ” BUFFALO, N.Y. – The poorer the neighborhood, the higher the risk for problem gambling, according to a study from the University at Buffalo Research Institute on Addictions (RIA). Based on representative telephone interviews with nearly 5,000 people, ages 14 to 90, in the United States, the study found that problem gambling was twice as likely in neighborhoods with the highest levels of concentrated poverty compared to neighborhoods with the lowest poverty levels. In areas with the highest “neighborhood disadvantage” – determined by census factors such as the percentage of people who were unemployed, received public assistance, and/or live in poverty – more than 11 percent were problem gamblers, compared to just 5 percent in neighborhoods ranking in the top fifth of economic advantage. “We found that neighborhood disadvantage had a substantial effect on problem gambling, even after controlling for a person’s socioeconomic status, age, gender or race,” says Grace M. Barnes, PhD, RIA senior research scientist and first author. “We also controlled for the convenience of gambling opportunities in these neighborhoods, and our findings were unchanged.” Further, individuals with the lowest socioeconomic status in the poorest neighborhoods were at greatest risk for gambling problems. Problem gambling was determined by a number of symptoms, including gambling with increasing amounts of money, repeated unsuccessful efforts to control or stop gambling, and preoccupation with gambling activities. Types of gambling included casinos, sports betting, horse or dog racing, lotteries and online gambling, as well as raffles, office pools, charitable gambling, pulltabs and bingo. The authors speculated on a number of reasons why gambling is worse in poorer neighborhoods. “It may be that people who live in disadvantaged neighborhoods do not see many role models of financial success achieved through conventional means,” says John W. Welte, PhD, RIA senior research scientist and a study co-author. “Therefore, gambling may be viewed as one of the few opportunities for financial advancement, and perhaps provides the lure as a means for easily gaining money.” In addition to Barnes and Welte, the study’s other co-authors, both at RIA, are Marie Cecile O. Tidwell, PhD, project manager, and Joseph H. Hoffman, data analyst. RIA is a research center of the University at Buffalo (UB) and a national leader in the study of alcohol and substance abuse issues. RIA’s research programs, most of which have multiple-year funding, are supported by federal, state and private foundation grants. Located on UB’s Downtown Campus, RIA is a member of the dynamic Buffalo Niagara Medical Campus and helps promote UB’s strategic focus on research initiatives.

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Do 5 dollar slots pay better?

It's well-known that the higher the denomination of slot machine, the higher the return percentage. This makes mathematical sense; since these machines handle much larger action, they can be set at a lower hold. Look at it this way: It takes 20% of a quarter wager to return the same as 5% of a dollar wager.

Concerning the high-limit slot-play area, the Nevada Gaming Control Board sets the minimum rate of return on slot machines. Does the same machine in the high-limit room pay off at the same percentage rate as the same machine on the general floor? Do the machines in the high-limit room pay off at a better, same, or less of a percentage rate as opposed to the machines on the general floor?

A:

It's well-known that the higher the denomination of slot machine, the higher the return percentage. This makes mathematical sense; since these machines handle much larger action, they can be set at a lower hold. Look at it this way: It takes 20% of a quarter wager to return the same as 5% of a dollar wager. Also, the slot payback statistics bear this out. For fiscal year 2018 in downtown Las Vegas, penny slots paid back on average 89.15%, nickel slots 93.40%, quarter slots 94.25%, and dollar slots 94.63%. The same is true for the machines in the high-limit rooms. Between March and May 2019, statewide, $100 slots paid back 95.69%. According to Michael Shackleford, The Wizard of Odds, "The machines in the high-limit areas have higher payback percentages than those on the floor." We'd be inclined to agree, although comparisons are tough, since you won't find too many $25, $100, or $500 slot machines in the main casinos.

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