![]() |
| States Try to Trump Video Poker Machine Owners | |||||||||||||||||||||||||||
| Subject | Elasticity of Demand | ||||||||||||||||||||||||||
| Topic | Elasticity | ||||||||||||||||||||||||||
| Key Words | Gambling, Addictiveness, Regulated, Tax | ||||||||||||||||||||||||||
| News Story |
Louisiana and South Carolina have begun to control the amount of video poker gambling. Video poker machines are often found in gas stations, restaurants, and convenience stores. Critics argue that the machines are the crack cocaine of gambling owing to their convenience and addictiveness. They report that many have gambled away their paychecks, and that gamblers are often from poor families. In Louisiana in 1996, 33 of the state's 64 parishes voted to ban the machines. This ban took effect on July 1, 1999. In South Carolina, voters will decide in November whether to allow video gambling to continue. If it does, it will be more closely regulated and heavily taxed. While the maximum jackpot will rise to $500 per sitting from $120 per day, minors can no longer play, machines are to be closed on Sundays, and no more than five machines are to be permitted in one establishment. The tax will be 25 percent, yielding an estimated $180 million per year for the state. (Updated August 1, 1999) |
||||||||||||||||||||||||||
| Questions |
|
||||||||||||||||||||||||||
| Source | David Firestone, "2 States Act to Limit Spread of Video Poker Machines," The New York Times, July 2, 1999. | ||||||||||||||||||||||||||
Return to the Elasticity Index
©1998 South-Western College Publishing. All Rights Reserved webmaster@swcollege.com |
DISCLAIMER