Q. My mother, who lives in a retirement community, is spending a lot of time at a nearby casino, which is aggressively courting her and her friends with all sorts of freebies. She isn’t wealthy, and when I ask about her gambling losses, she won’t say much—but insists that the casino trips are fun for a lonely widow. What can be done about the casino’s targeting of these seniors?
A. The gambling industry knows that people older than 50 make up almost half of their total visitors, and retirees are able to come to casinos during slack daytime hours, when working adults can’t. Casino owners observe that gambling is legal and that these are consenting adults who seem to enjoy being there. So their marketing to seniors is legal, and that includes free transportation, meals, rooms and VIP hosts who welcome them warmly and encourage them to play more.
But is it ethical? No. Many seniors, like gamblers of all ages, can’t afford their losses and hide them from family members. And medical research has shown that cognitive changes common in the aging brain—and also some medicines taken by the elderly—make them vulnerable to the stimuli of electronic slot machines, which are programmed to keep a player involved until his or her money is exhausted (see “The Casino Trap” at AARP.org (opens in new tab)).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
State gaming commissions, which regulate casinos, have an ethical obligation to crack down on predatory marketing to the elderly. But so far, most don’t seem interested. Regulators should prohibit casinos from offering free senior shuttles; if they don’t, then operators of private retirement homes and public senior-citizen social centers should stop allowing the shuttles to pick up seniors at those locations.
Investment advisers have a legal obligation to determine the financial means and experience of every new customer and to be on the lookout for inappropriate trading behavior. Casinos should have a similar “duty of care” obligation toward their customers, establishing gambling limits in advance and/or spotting and barring compulsive gamblers.
-
-
Why Investors Should Avoid Buying the Banking Sector Dip
Even though things appear to have settled after SVB's collapse, that doesn’t mean all is clear. Consider options like healthcare and consumer staples instead.
-
How to Decide Between a 1 or 5-Year CD
A look at the pros and cons of having a 1-year vs. 5-year CD account.
-
Should All Student Debt Be Forgiven?
student loans My favorite reform would be making the repayment of all student loans proportional to the borrower’s future earnings.
-
Should Lenders Mail Unsolicited Checks to Potential Borrowers?
credit & debt When it comes to preying on weak credit risks, it looks like Wall Street is at it again.
-
Do Adult Children Have an Obligation to Support Needy Parents?
savings Even if some siblings can afford to help more than others, no one should shirk the obligation to assist in some way -- financial or otherwise.
-
How Can the Approval Process for New Drugs Be Speeded Up?
investing There are many reform proposals, including some from free-market think tanks.
-
Should Ethics Determine Who You Do Business With?
Smart Buying Consumers seeking to do business only with ethical companies should ask these questions.
-
Should Colleges Use Collection Agencies for Overdue Student Bills?
college Colleges have many potent options for getting students to square their accounts.
-
Hold Soda Makers to Account for Health Woes?
Business Costs & Regulation A strong case can be made that it’s unethical for companies to target the very customers who shouldn’t be heavy consumers of a given product.
-
Ways to Protect Borrowers From Predatory Home Lending
real estate Land contracts drain low-income communities of resources.
