Personal Financial Literacy Assessment: Standard 12. Gambling

Gambling, like any other financial choice you make, has costs and benefits for the individual, as well as for society. Which might NOT be considered a benefit to gambling?

• It can provide revenue for state governments and public projects.

• It can become an addictive behavior accompanied by financial loss.

• It can be a fun form of entertainment for adults.

• It can bring tourists who spend money at associated businesses in a community.

Some people choose to engage in legal or illegal gambling for fun, as well as to potentially increase their income. Which of the following is NOT a form of legalized gambling in Oklahoma?

• casinos

• horse-racing

• lotteries

• dog fights

All are examples of games of luck EXCEPT (a)   .

• sports

• bingo

• lotteries

• slot machines

_____ allow(s) you to use your knowledge to have some control over the outcome. While there is no guarantee about the outcome, your odds of winning can be improved if you are knowledgeable and experienced about how the game is played.

• Predictability

• Games of skill

• Game of luck

• Playing the odds

While gambling can be exciting, it can also be a financial trap. Some critics point to the following social problems caused by compulsive or “problem” gambling EXCEPT (a)   .

• family debt

• bankruptcy

• local jobs

• tax evasion

The proceeds of lotteries and scratch tickets go to the state; therefore, buying lottery tickets is considered a voluntary (a)   tax because it tends to have a much greater impact on lower-income families than those at higher income levels.

• regressive

• progressive

• sales

• personal income

Which of the following is NOT a consequence of the passage of the Indian Gaming Act of 1988?

• There are tribal casinos in virtually every state, including Oklahoma.

• All profits from tribal casinos go to the Oklahoma state treasury.

• Casinos provide community jobs, with benefits for their employees.

• The revenue from tribal gaming provides income for various tribal needs.

_____ is a form of pari-mutuel betting that provides jobs and brings tourists to Oklahoma.

• card games

• slot machines

• online poker

• horse-racing

Which of the following is good advice regarding gambling?

• Money used for games of chance should be money you can afford to set aside.

• If you find yourself losing, continue to gamble because the odds are in your favor.

• Only bet on games of luck because the probability for winning is higher.

• Increase your income by borrowing money to place wagers.

Which of the following is a true conclusion about gambling?

• While fun, basing your financial future on games of chance is not very reliable.

• Investing in the stock market is playing a game of luck.

• Predictability and probability are the same concepts at work when gambling.

• The odds of winning in most games of chance are high for skilled gamblers.