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.