Gambling in Minnesota
 

Gambling Participation Rates of Northeastern Minnesota Adults

Report 1997-2

A Study by the Minnesota State Lottery with the assistance of the St. Cloud State University Survey

 

 

TABLE OF CONTENTS

Highlights

Introduction

Overall Gambling Participation

The Demographics of Northeastern Gamblers

Charitable Gambling/Lottery Sales

History of Gambling Participation

  • Indian Casinos
  • Non-Indian Casinos
  • Minnesota State Lottery
  • Other Lottery
  • Cards
  • Dice
  • Dog Racing
  • Social Bets
  • Horse Racing
  • Pulltabs
  • Sports Events
  • Bingo

Methodology

 

HIGHLIGHTS

  • Gambling activity in Northeastern Minnesota is very similar to that of the rest of the state.
  • The overall participation rate in Northeastern Minnesota has increased slightly from 84 percent in 1993 to 88 percent in 1997.
  • Gambling in Northeastern Minnesota is consistent with the state's overall gambling participation rate of 89 percent (in 1996 and 1997).
  • Residents of Northeastern Minnesota and those of the rest of the state are similar in their gambling habits(both groups have wagered on an average of four gambling activities during their life and two activities in the past year.
  • Bingo has a higher lifetime participation rate in Northeastern Minnesota than for the state overall, but horse and dog racing are far less popular with Northeasterners.
  • Residents of Northeastern Minnesota are slightly more likely to visit Indian casinos than are other Minnesotans.
  • Unlike the rest of the state, Northeastern Minnesota does not show a large decline in lifetime gambling among those 65 and older.

 

INTRODUCTION

The seven counties of Koochiching, St. Louis, Lake, Cook, Itasca, Carlton and Pine represent what will be referred to as Northeastern Minnesota. Gambling opportunities throughout the territory are many. The region is home to five of the state's 16 Indian-owned casinos, 390 licensed charitable gambling locations and 348 Minnesota State Lottery retailers. In addition, residents may indulge in social wagering at informal card games, take part in office Super Bowl pools or even leave the region to attend a horse race or buy a Wisconsin lottery ticket.

But how does the gambling activity in this area compare to the rest of the state? Are Northeasterners more likely to gamble than other Minnesotans? Do they prefer the same activities?

These and other questions were addressed in a survey designed by the Minnesota State Lottery with the assistance of the Survey Research Center at St. Cloud State University. The Survey Research Center designed the sample and conducted the interviews. Lottery staff completed the data analysis and report writing.

About 2,400 interviews were conducted statewide; 391 responses came from Northeastern Minnesota. Sixty-seven percent of the households contacted completed the survey.[1] Respondents were asked if they had participated in any of 13 different forms of gambling and whether they made wagers on each of those activities during the past year.

The design, methodology and many of the survey's questions were replicated from phone interviews conducted in the early summers of 1993, 1995 and 1996. This report uses data from these earlier projects to see how gambling behavior in Northeastern Minnesota adults has changed in recent years. It also compares activity in Northeastern Minnesota with state participation rates.

 

OVERALL GAMBLING PARTICIPATION

Eighty-eight percent of Northeastern Minnesota adults report having gambled sometime during their lives(that's about 211,000 of the 240,000 adults living in the region. The overall participation rate has increased slightly from 84 percent in 1993 but is currently consistent with the state's overall gambling participation rate of 89 percent found both in 1996 and in 1997[2]. Gambling during the past year by Northeastern Minnesotans is identical to the state's participation rate of 72 percent of adults.

Gambling Participation in Northeastern Minnesota bar chart

The number of gambling activities played by Northeastern adults is similar to the state's overall activity. The average adult in both populations has bet on four of 13 specific gambling activities in his or her lifetime.

Number of Gambling Activities bar chart

The average Minnesota adult in both populations (Northeastern Minnesota and the entire state) has participated in two of the 13 gambling categories during the last year.

Activities in the Last Year bar chart

The Minnesota State Lottery and pulltabs are the most popular forms of gambling in Northeastern Minnesota and the state as a whole. Bingo has a higher lifetime participation rate in Northeastern Minnesota than in the state overall and horse and dog racing are far less popular with Northeasterners (probably because of distance to the nearest horse or dog tracks).

Percentage of Adults Ever Wagering On... bar chart

Have you Made This Kind of Bet Within the Past Year bar chart

The Minnesota State Lottery remains the most popular form of gambling. Nearly half of the adults in Northeastern Minnesota and throughout the state have played the Lottery during the last year. Indian casinos show a slightly higher participation rate (33 percent) by Northeasterners in comparison with the state's participation rate of 29 percent.

 

THE DEMOGRAPHICS OF NORTHEASTERN GAMBLERS

There is very little difference in gambling participation rates between Northeastern Minnesota and the state overall for those under 55. Gambling appears to be most popular for those under 35. However, Northeastern Minnesota does not show a large decline in gambling participation for those 65 and older, unlike the state's population.

Have You Ever Gambled (by age) bar chart

Gambling behavior within the past year by Northeasterners under the age of 45 is very similar to the state's participation rates. However, the state shows a considerable decline in participation for those 65 and older. Northeastern Minnesota shows its decline earlier, in the 55-64 age group, but then appears to level off. Seniors living in Northeastern Minnesota are more likely to have gambled recently than seniors living throughout the state.

Have You Gambled Within the Past Year (by age) bar chart

Education seems to have very little influence on overall gambling participation rates in Northeastern Minnesota or throughout the state. All of the categories hover around the state's lifetime gambling participation rate of 89 percent.

Have You Ever Gambled (by education) bar chart

Lifetime gambling preferences for Northeastern males are predominately similar to those of males throughout the State. Northeastern males are less likely to have bet on a horse race or made a social bet during their lifetime than the State male populace as a whole.

Have You Ever Bet On (% of adult males) bar chart

Have You Ever Bet On (% of adult females) bar chart

Bingo, more popular with females than males, is even more popular for Northeastern females than for females throughout the state. Fifty-six percent of Northeastern adult females have played bingo, whereas state bingo participation overall by adult females is 46 percent. Horse and dog racing are less common gambling activities for females in the Northeast. Lifetime participation for other forms of gambling closely reflect the state's overall participation rates.

 

CHARITABLE GAMBLING/LOTTERY SALES

In addition to a state-run Lottery, Minnesota also licenses nonprofit organizations, giving them the right to sell pulltabs and tipboards, and run bingo games, raffles and paddlewheels. The Gambling Control Board oversees these lawful gambling activities, which raise money for various charities throughout the state. Charitable gambling sales reached over $1.3 billion in fiscal year 1997, three and a half times higher than the state's Lottery sales of $370 million. Pulltabs remain the most popular of the five types of charitable gambling activities, grossing over $1.2 billion in FY97.

Regional Sales by County bar chart

Northeastern Minnesota accounted for approximately 10 percent ($135 million) of state charitable gambling sales and 9 percent ($30 million) of Lottery sales.

St. Louis County had by far the largest sales in the region, contributing more than $82 million in charitable gambling activities and $18 million in Lottery purchases.

This is not too surprising, because St. Louis County is home to 217 of the 390 charitable gambling establishments and 232 of the 385 Lottery retailers in Northeastern Minnesota.

Percentage of Region Total by County bar chart

Although charitable gambling and Lottery sales differ greatly in volume from each other and from county to county, there is similarity in the proportion of total regional sales contributed by each of the Northeastern counties. County populations, as a percentage of the region, are also consistent with charitable gambling and Lottery sales.

The next three charts depict gambling participation of Northeasterners from 1993 through 1997. They show current and lifetime participation rates for 12 of the 13 specific gambling activities discussed in this report. [3]

 

HISTORY OF GAMBLING PARTICIPATION

Percentage of Northeastern Adults Playing (1) bar chart

Percentage of Northeastern Adults Playing (2) bar chart

Percentage of Northeastern Adults Playing (3) bar chart

 

METHODOLOGY

During June and July 1997, the Minnesota State Lottery contracted with the St. Cloud State University Survey for a telephone survey of Minnesota adults. The SCSU Survey is an ongoing survey research arm of the Social Science Research Institute in the College of Social Sciences at St. Cloud State University. The questionnaire was designed by the Minnesota State Lottery and modified in consultation with the SCSU Survey directors.

The survey director is Dr. Steve Frank, SCSU Professor of Political Science. Dr. Frank is a member of the Midwest Association for Public Opinion Research and the American Association for Public Opinion Research and subscribes to the code of ethics of the AAPOR. Dan Olson served as the interviewer supervisor. About 20 trained, supervised and paid SCSU students conducted the actual interviews using a computer-assisted telephone interviewing (CATI) system. They were monitored by Olson and Frank. All calls were made from the SCSU Survey Research Laboratory. Callers were identified as being from St. Cloud State University. The survey was administered between June 8 and July 15. The instrument was pre-tested by SCSU Survey prior to the start of the phone calling.

The target population was surveyed using a stratified random sample scheme. According to this scheme, the state was divided into six geographic areas corresponding to Lottery sales regions and a goal was set to obtain 400 completed responses within each region. Several steps were taken to ensure that the telephone samples of each region's adults 18 or older was representative of each area's larger population. Households were contacted using random digit dialing, a technique that can reach changed, new and unlisted phone numbers (samples from phone books may skip 30 percent or more of area households). The random digit sample for each region was prepared by Survey Sampling, Inc., of Fairfield, Connecticut. Within each household the particular respondent was determined in a statistically unbiased fashion using the Hagen-Collier method[4]. This method seeks to eliminate statistical bias by alternating between men and women and older and younger respondents. Few substitutions were allowed. Hard-to-reach respondents were called up to seven times over different days and times, and appointments were made as necessary to interview the designated respondent at his or her convenience. Calls were made primarily after 4:30 p.m. and on weekends, but calls were also made during weekdays in order to reach hard-to-get respondents.

Each regional sample consisted of about 400 completed interviews for an estimated sample error for each area of (+/-) 5 percent at the 95 percent level of confidence. This means that if one were to have drawn 20 samples of each region and administered the same instrument, it would be expected that the overall findings would be greater or less than 5 percent only one time in 20. The sample error for all regions combined and weighted for statewide analysis is approximately (+/-) 2 percent. As with all sample surveys, however, there are other possible sources of error for which precise estimates cannot be calculated. For sub-samples such as age and gender, the sample error may be larger.

The completion rate of the survey is 67 percent, which is at least 10 percentage points above the average for professional marketing firms and reverses a slight decline over the past three years. Completion rate means that once an eligible household was reached, about two-thirds of the respondents agreed to participate in the survey. With a few exceptions, partial surveys were not counted as complete. The upward tick is due to better training, better use of the CATI system and more attempts to convert some initial refusals. A total of 2,396 interviews were completed. The demographics of each sample appear to match census and other known characteristics of each region very well. As is characteristic of telephone surveys, women were slightly over-sampled; results are weighted to compensate for this.

Analysis of the data was completed by the Minnesota State Lottery research department using the SPSS statistical analysis computer package. Before analysis, each response was assigned a statistical weight based on 1995 population estimates from the State Demographer's office to compensate for the different population sizes of each region and the oversampling of women[5]. Information in this report was compiled by Lottery Research Analyst Colette Hanson under the supervision of Don Feeney, Research and Planning Director for the Lottery. Feeney holds a Master of Science degree in statistics and is a member of the American Association for Public Opinion Research, the American Statistical Association and its section on Survey Research Methods.

[1] With a sample of this size, the estimated sample error statewide is approximately plus or minus 2 percent at the 95 percent level of confidence; if one were to draw repeated samples of the same size and administer the same survey, the findings would differ by more than 2 percent only one time in 20. Sample errors for substate regions and demographic or other subgroups are, of course, larger.

[2] See Gambling in Minnesota, Report 1: Gambling Participation Rates of Minnesota Adults: 1997 for state detail.

[3] The riverboats/cruises category was first included in the 1997 survey and as such has insufficient history for charting.[4] For further information on the Hagen-Collier method and other methods of respondent selection, see Lavrakas, Paul J. Telephone Survey Methods: Sampling, Selection, and Supervision, Sage Publications, Newbury Park, CA, 1987.

[5] For a detailed discussion of stratified random sampling and weighting see Cochran, William G., Sampling Techniques, John Wiley & Sons, New York, 1977.

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