Unit12:Gambling

PersonalFinancialLiteracy

Objectives

•  Explainhowgamesofchancework.•  Comparethecostsandbenefitsofgambling.

Probability

•  Thechanceofsomethinghappeningagainstthetotalchances– Inadeckofcards,theprobabilityofdrawinganaceis1in13,becausetherearefouracesinadeck.

Odds

•  Thechanceofsomethingnothappeningvs.thechanceofithappening.– Theoddsare12to1againstyoudrawinganaceinadeckofcards.

GamblingwithCards…

•  Probabilityincreasesasyougothroughdeck•  Thechanceofdrawinganaceincreaseswitheachcarddrawn

LotteryorSlotMachines

•  Elementofrandomness

•  Numbersyougetonetimehavenoeffectonnumbersyouwillgetnexttime

•  Cannotpredictanythingbasedonprobability

•  Basedonluck

HouseAdvantage

•  Gamingfacilitiesalwayshavetheadvantage.•  Casinosarehugemoneymakingoperations.•  Facilitythatdidn’thaveadvantagewouldgooutofbusiness.

Powerball

•  TheoddsofwinningPowerball:1in175million(in2013)1in292million(in2018)(Betterchanceofdyingfromfireworksthanwinningthelottery!)

•  TheoddsofwinningtheMegaMillionsJackpot:1in302million(in2018)

BenefitsofGambling

•  Entertainment•  Relaxing•  Employsmorethanamillionpeople•  ManyIndiantribesbenefit•  Stateearnsmoney

HookedonGambling

•  Gamblingaddictscross–  gender–  age–  economicspectrum

•  Somegambletodealwithemotionalissues.

•  Addictionwillgrowuntilit’soutofcontrol.

HookedonGambling-Continued

•  Gamblingaffectsfamilymembers,finances•  Gamblersmay– Steal– Embezzle– Gambleillegallywithdangerouscriminals

Statistics-https://wallethub.com/edu/states-most-addicted-to-

gambling/20846/•  USConsumers–over$100billionperyearingamblinglosses•  Malegamblingaddictaverages$55,000-$90,000debtwhile

femalesaverage$15,000•  2018MostGamblingAddictedStates–Oklahoma#10–

Nevada#1•  MostCasinosperCapita–#1tieNevada,Oklahoma,South

Dakota•  MostGamingMachinesperCapita-#1Nevada,#2Oklahoma,

#3SouthDakota

CasinosWantYour$$

•  MostcasinoshaveATMs•  Manyacceptcreditcards•  Cashadvanceoncreditcard

Youarespendingmoneyyoudon’thave,andpayingfortheprivilege!

UnitReview1.  Describehowgamesofchancework.2.  Explainhowprobabilityisdifferentforcard

gamesthanfordicegamesorslotmachines.3.  Whatis“thehouse”andwhydoesithave

theadvantageingambling?4.  HowhasOklahomabenefitedfrom

gambling?5.  Describewhatkindofaddictiongamblingis

andhowitisdifferentthansubstanceabuse.

UnitReview-Continued6.  Discusssignsthatapersonhasagambling

problem.7. Discusswhatapersonrisksbygambling.