1. Standard 12, Module 12.1 “Risky Business”
Gambling
Standard 12, Module 12.1 “Risky Business”

2. What Gambling Is Exciting Challenging
Some think it’s fun, some think it’s upsetting
It’s a form of entertainment
Risk
Based on LUCK
Can create financial losses
place into budget as
entertainment

3. Examples Lottery Bingo Slot machines Poker Black jack Roulette Horses
Sports

4. Statistics
A small minority (3%) become highly addicted and wreck their personal finances.
20% of all compulsive gamblers file for bankruptcy after maxing out their credit cards
One-third will lose their jobs
4-8% of teens have gambling problems
10% at risk
Male more likely than female

5. How to Spot a Problem Gambler
Always thinking about gambling, urge to gamble
Bets more money to keep the thrill
Cranky when cutting back
Lying to hide
Betting through illegal activity
Trying to win back money with more gambling
Using it as an “escape”
Making loved ones unhappy
Relying on others for monetary help
Not able to stop/can’t control gambling
Seek professional help if you’re addicted

6. BENEFITS of Gambling
Gaming industry earnings $100 billion AFTER paying out winnings
Online gambling accounts for over 10% of industry earnings
Earnings provide jobs for many peoples
In OK, gaming earns $2 billion annually and employ thousands of people and provide revenue for local communities

7. COSTS of Gambling
Casinos take revenue from other businesses in the area
Casinos can discourage other businesses from being located near them (if you’re spending money at a casino, you won’t have money to spend elsewhere)
Money spent on lotteries tend to reduce income levels by 5%, taking away money from food, rent, utilities, etc.

8. Probability - how likely it is for something to happen
The Odds of Winning
Probability - how likely it is for something to happen
Example: if you pull one card out of a deck of cards, what is the probability that you’ll draw an ace.
4 out of 52
52 cards in a deck, 4 aces
What’s the probability of getting “tails” if you flip a coin?
Best odds of winning: blackjack/21
Casino has a better shot at winning than you

9. Independent vs. Dependent
Example: flipping a coin
Probability of tails does not change no matter how many times you flip the coin
Example: playing poker
Each hand is dependent on the previous
If you get an ace in the first hand, the probability of getting another ace is dropped to 3/52
Another example: powerball

10. Predictability You have some knowledge about the choices you make
Example: if you know a mutual fund has a good history of increased value, you can make some predictions about the future value of the fund
Weather forecasters rely on predictability
They know the chance something will happen based on current conditions