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Alcohol and Advertisement
Alcohol is a drug that can lead to intoxication when used.
Intoxication is a state of toxic poisoning characterized by an impaired physical and mental condition commonly known as drunkenness or inebriety.
The Gambler Protection Model would prohibit the service of alcohol by casinos to persons who are gambling.
The rationale is that serving alcohol, particularly on a complimentary basis, is an inducement to gamble and may result in the person playing with impaired judgment.
Absent a total prohibition, the government can place other restrictions on the service of alcohol. For example, in New Jersey a gambler must specifically request a drink. A common prohibition is that casinos cannot allow visibly intoxicated persons to gamble.
A wager between the casino and the gambler is a contract because it involves a set of promises for the breach of which law gives a remedy.
The promises are, on the casino's part, that if the gambler wins, the casino will pay according to the rules of the game; on the gambler's part, that he or she will pay the amount of the bet if he or she loses.
A gaming contract, therefore, is merely a type of contract arising out of a gaming transaction.
To be bound by a contract, the gambler must have the capacity to incur the debt. The general rule is that a person has the capacity to incur contractual obligations unless special circumstances exist.
Gamblers have argued incapacity based on severe intoxication. Doubt exists in many states whether incapacity due to intoxication is a recognized defense.
Whether to allow casinos to advertise is a policy decision based on the potential negative impact of gaming on a community.
Proponents of the ban argue that advertising encourages more people who would otherwise not gamble to use non-discretionary funds for gaming purposes.
Instead of buying books, appliances, or food, they spend their money on slot machines. Thus, society as a whole will suffer because the general standard of living will decrease.
Some states, however, confuse their goals and policies. On one hand, they want casinos to provide jobs and taxes; but on the other hand, they wish to discourage gambling by banning advertising.
Banning casino advertising, but allowing casino gaming, can be consistent. In societies that permit legal gaming and have rational policies underlying their regulatory structure, two distinct systems exist.
In a competitive market, consumers can only make rational decisions on where to spend money if they have information about the rates charged and the products offered by competitors.
A most common method of acquiring such information is through advertising. Advertising is often an imperfect source of information, but it may be better than no information at all.
A ban on advertising disrupts a competitive market. Often, this disruption helps established firms, but it can also hurt the entire industry.
In a closed market, the ban may benefit existing casinos as it prevents consumers from making rational decisions on where to bet, and may promote oligopoly prices.
If the market is close to another market that allows advertising, a ban may be counter-productive because the other market can use advertising to draw price-conscious consumers.
In all instances, a ban on advertising burdens the gambler, who has a greater difficluty in obtaining pricing information.
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