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

The overall participation rate in Northwestern Minnesota has increased gradually from 82 percent in 1993 to 88 percent in 1997, but is currently consistent with the state's overall gambling participation rate of 89 percent. Residents of Northwestern Minnesota and those of the rest of the state resemble each other in their gambling habits ( both groups have wagered on an average of four gambling activities during their lifetimes.

Lottery play (both Minnesota Lottery and other lotteries) is a less popular recent activity for Northwesterners than for the state populace as a whole. Seniors living in Northwestern Minnesota are less likely to have gambled recently than seniors living throughout the state.

Northwesterners without a high school diploma are the least likely to have gambled during their lifetime.

Lifetime gambling preferences for Northwestern men are predominately similar to those of men statewide, but Northwestern women reflect the overall state female participation rates in only five of the 13 gambling activities.

INTRODUCTION

The 20 counties depicted on the cover of this report represent what will be referred to as Northwestern Minnesota. The largest of Minnesota's six regions geographically, it is home to four of the state's 16 Indian-owned casinos, 370 licensed charitable gambling locations and 401 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 in Canada or play blackjack in North Dakota.

But how does the gambling activity in this area compare to the rest of the state? Are Northwesterners 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; 390 responses came from Northwestern 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 Northwestern Minnesota adults has changed in recent years. It also compares activity in Northwestern Minnesota with state participation rates.

OVERALL GAMBLING PARTICIPATION

Gambling Participation in Northwestern Minnesota bar chart

Eighty-eight percent of Northwestern Minnesota adults report having gambled sometime during their lives (that's about 216,000 of the 246,000 adults living in the region). The overall participation rate has increased gradually from 82 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 Northwestern Minnesotans is comparable to the state's participation rate of 72 percent of adults.

Number of Gambling Activities bar chart

The number of gambling activities played by Northwestern Minnesota 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. The average Minnesota adult has participated in two of the 13 gambling activities during the last year; a typical Northwestern adult has participated in one.

The Minnesota State Lottery and pulltabs are the most popular forms of gambling in Northwestern Minnesota and the state as a whole. Northwesterners are by far less likely to have wagered on a horse race or to have purchased an out-of-state lottery ticket in their lifetime than are adults living throughout the state most likely because of the distance to the nearest horse track (Winnipeg) and the lack of a lottery in neighboring North Dakota. Cards, non-Indian casinos, sports events and dog racing are also less popular activities in Northwestern Minnesota than in the state overall.

Percentage of Adults Ever Wagering On... bar chart

Bets in the Past Year bar chart

When we consider only recent experience we find that the Minnesota State Lottery remains the most popular form of gambling. Forty-three percent of the adults in Northwestern Minnesota and nearly half of the adults throughout the state have played the Lottery during the last year. However, lottery play (both Minnesota Lottery and other lotteries) is a less popular activity for Northwesterners than for the state populace as a whole.

Favorite Form of Gambling* bar chart

Slots/video ranks the highest as the favorite form of gambling in both Northwestern Minnesota and throughout the state for those having a gambling preference. Northwesterners tend to favor blackjack and bingo more often than does an average Minnesotan. Lotteries are favored more by adults living throughout the state than by those living in the Northwestern portion of the state.

THE DEMOGRAPHICS OF NORTHWESTERN GAMBLERS

Have You Ever Gambled (Area vs. State) bar chart

There is very little difference in gambling participation rates between Northwestern Minnesota and the state overall for those under 45. Gambling is least popular for those 65 and older and even more so for those adults living in Northwestern Minnesota.

Have You Gambled Within the Past Year bar chart

Gambling behavior within the past year by Northwesterners under the age of 35 is similar to the state's participation rates. However, Northwestern Minnesota shows increasing participation rates (from 68 percent in the 35-44 age group to 77 percent in the 55-64 age group), whereas the state remains stable at 73-74 percent for those between the ages of 35 and 64. Both groups show a considerable decline in recent participation for those 65 and older and the decline is even more significant for seniors living in Northwestern Minnesota. Seniors living in Northwestern Minnesota are less likely to have gambled recently than seniors living throughout the state.

Have You Ever Gambled (by Education) bar chart

Northwesterners without a high school diploma are the least likely to have gambled during their lifetime. All other categories hover around the state's lifetime gambling participation rate of 89 percent, suggesting that education has minimal influence on overall gambling participation rates both in Northwestern Minnesota and throughout the state.

Have You Ever Bet On... (Men) bar chart

Lifetime gambling preferences for Northwestern men are predominately similar to those of men throughout the state. Northwestern men are less likely to have played the lottery (especially lotteries outside of Minnesota), bet on a horse race or wagered on card games during their lifetime than the state male populace as a whole. However, a Northwestern man is more likely to have gambled on dice than a typical Minnesotan man.

Have You Ever Bet On... (Women) bar chart

A Northwestern Minnesota woman is just as likely to have gambled during her lifetime as any Minnesotan woman. Overall participation rates for each of the groups are very similar at 86 and 85 percent, but their category specific participation rates reflect state rates for less than half of the gambling activities. Northwestern Minnesota women are by far less likely to have bet on a dog race, horse race or a sports event than are women statewide.

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 exceeded $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 more than $1.2 billion in FY97.

Regional Sales by County bar chart

Northwestern Minnesota, with 8 percent of the state's population, accounted for approximately 10 percent ($139 million) of state charitable gambling sales and 9 percent ($32 million) of Lottery sales.

The top six of the 20 counties in the region (Otter Tail through Beltrami) contributed 67 percent (92.7 million) of charitable gambling sales and 73 percent (23.2 million) of Lottery sales in Northwestern Minnesota. Lottery sales were slightly higher than charitable gambling sales in Wilkin and Mahnomen counties. Wilkin County has two charitable gambling locations and Mahnomen County has only one in comparison with respectively 7 and 8 Lottery retail locations.

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 (with the exception of Clay County), there is similarity in the proportion of total regional sales contributed by each of the Northwestern counties. Clay County shows a much higher percentage of regional lottery sales (18 percent) than charitable gambling sales (9 percent), which is attributable to Lottery purchases by North Dakota residents. It is estimated that North Dakotan's contribute roughly $5 million per year to the Minnesota State Lottery.[3] Moorhead, Minnesota has three of the top 15 Lottery retailers statewide and four of the top 10 Numbers games retailers statewide.

County populations, as a percentage of the region, are also fairly consistent with charitable gambling and Lottery sales. Polk County shows the largest discrepancy in this regard with 9 percent of the population contributing 14 percent of both regional charitable gambling and Lottery sales. This seemingly high level of gambling activity is probably attributable to gambling by Grand Forks area North Dakotans. East Grand Forks (in Polk County) has three Lottery retailers in the top 50 statewide, all of which are in the top 30 for Numbers games sales. The flooding in 1997 may have had an effect on sales; in previous years several East Grand Forks retailers have been among the Lottery's top 10.

The following charts depict gambling participation of Northwesterners from 1993 through 1997. They show current and lifetime participation rates for 12 of the 13 specific gambling activities discussed in this report.[4]

HISTORY OF GAMBLING PARTICIPATION

Percentage of Northwestern Adults Playing... (1) bar chart

Percentage of Northwestern Adults Playing... (2) bar chart

Percentage of Northwestern 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.5 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.6 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. For Northwestern Minnesota the estimated sample error is approximately plus or minus 5 percent at the 95 percent level of confidence.

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

[3] Based on 410 winners of major prizes from North Dakota, inception through July 31, 1997, which account for 1.4 percent of total major prize winners for the same time period. Multiplying 1.4 percent by $369 million (total Lottery sales for fiscal year 1997 gives a rough estimate of $5 million.

[4] The riverboats/cruises category was first included in the 1997 survey and as such has insufficient history for charting.

[5] 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.

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