May 19, 2006

Blood money

According to a MMI study from 2005, 90% of the money used on slot machines come from 5.5% of the norwegian population.

I wonder: if the beneficiaries got an opportunity to instantly curing all these people from their addiction and irrational beliefs, would they take it? Along with a 90% cut in their income?

As far as the red cross goes, I know the answer. Their president in norway has stated in debates that he will defend slot machines no matter what because they are a so important source of income.

The perverse incentives have won, and managed to corrupt an old, respected humanitarian organisation.

90% of the income from the top 5.5% (ab)users. Think about that! The sad thing is that gambling is not the only business which follows this pattern. The alcohol industry know very well that they, too, earn most of their money on the worst abusers, and they don't even have an old humanistic tradition to hold them back.

Posted by vintermann at May 19, 2006 07:46 AM