Charitable
gambling is the act of betting, when some predefined portion of
either your wins or your losses are donated to charity. There are
a few online casinos that either advertise themselves as a charitable
gambling establishment, or donate some of their earnings towards
charity.
The important distinguishing feature of charitable gaming, apart
from its government authorization, is the fact that funds are raised
locally by charitable and non-profit organizations and used locally
by these organizations to support their communities. While this
may not hold true exactly for online charitable establishments,
it’s spirit is intended with well known charities benefiting. (definition
cited from the Provincial Bingo Charitable Activities Association)
Different
parts of the world have different views on what is sometimes considered
an oxymoronic expression and act. This type of gambling is unconstitutional
in California. Non-profit organizations now operate limited raffles
and "Las Vegas" nights by offering free tickets to anyone who requests
them. Theoretically, nothing is risked, and these types of raffles
have been judged to be legal. The "no purchase necessary" message
on the tickets tends to keep these raffles small, conducted among
friends in a limited geographic area, not widely advertised, with
no public sale of tickets door-to-door or on street corners. Many
organizations -- like the Boy Scouts and the Salvation Army -- do
not permit fund raising through charitable gambling.
Under the Criminal Code of Canada, provincial governments have the
authority to allow gaming for charitable purposes. In Ontario, this
activity is licensed and regulated under the auspices of the Alcohol
and Gaming Commission of Ontario. The Alcohol and Gaming Commission
of Ontario has delegated much of its day-to-day responsibilities
to the municipal level of government. As a result, the bulk of charitable
gaming activity in Ontario is regulated locally through municipalities.
In instances like Ontario, Canada, charitable gambling can become
an integral part of the community life and government support, and
a primary part of fundraising efforts for local charities. As the
Ontario Charitable Activities Association puts it “Charitable gaming
is a critical component of the fundraising efforts of small, medium,
and large charities and non-profit organizations in local communities
across the province. Each year, Ontario's charitable and non-profit
organizations raise more than $150 million to meet local needs -
including those of seniors, the disabled, other social services,
youth organizations, and more.”
Certainly there are benefits to this type of gambling, but are there
costs? Many argue that the social effects of any act of gambling
are not worth the economic benefit to public or private sectors.
The line certainly becomes blurred at this point.
In the United States the land based gaming-entertainment industry
employs more than one million people. Casinos paid more than $1.4
billion in taxes to state and local governments in 1995 and made
nearly $22 million in direct supply purchases for each $100 million
in casino revenues.
Tunica, Miss., once referred to by the Rev. Jesse Jackson as the
"Ethiopia of the United States" because of its poverty, has experienced
a 29 percent drop in the number of local residents receiving welfare
payments since the introduction of legalized gaming in 1992. Since
1993, when the first casino opened its doors in Vicksburg, Miss.,
more than 600 people have been dropped from the rolls of Aid to
Families with Dependent Children, a result of the more than 4,000
jobs generated by the gaming-entertainment industry.
Often referenced by critics is a 1981 study by Politzer, Morrow
and Leavey on the social costs of gambling. The Politzer study was
based upon an analysis of only 28 pathological gamblers in treatment
at Johns Hopkins University.
More research is necessary for any conclusions to be drawn. Most
people believe the John Hopkins study was fundamentally flawed by
its low sample size, which is not representative of the gaming industry
at large.
With these facts before you, you can decide for yourself how you
feel about charitable gambling. One thing is certain, if you’re
a gambler, and you have a socially responsible mind, you will probably
sleep better at night if your gambling was charitable.
Different
parts of the world have different views on what is sometimes considered
an oxymoronic expression and act. This type of gambling is unconstitutional
in California. Non-profit organizations now operate limited raffles
and "Las Vegas" nights by offering free tickets to anyone who requests
them. Theoretically, nothing is risked, and these types of raffles
have been judged to be legal. The "no purchase necessary" message
on the tickets tends to keep these raffles small, conducted among
friends in a limited geographic area, not widely advertised, with
no public sale of tickets door-to-door or on street corners. Many
organizations -- like the Boy Scouts and the Salvation Army -- do
not permit fund raising through charitable gambling.