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what is

Charitable Gambling

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)

Novice Gambler - the # 1 source for free gambling information for beginners - news, links, tips, odds, free gambling, strategy and more - charitable gamblingDifferent 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.
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