Gambling: Legality and Morality December 18, 2014Posted by federalist in Economic Policy, Government Regulation.
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My general attitude towards legal gambling has been libertarian melancholy: I don’t consider it a positive means of recreation, but as long as everything is above-board who am I to tell people how to spend their money? The expected losses from gambling are well known. The fact that it is addictive and can financially ruin people is also fairly evident.
But after reading this story I don’t think the way it’s done in America is fair: Yes, the industry and its regulators go to great lengths to ensure that games yield their expected negative outcomes to players — no more, no less. But when a player finds a bug or advantage and exploits it he is treated as a criminal. This takes the industry’s built-in “heads-I-win tails-you-lose” bias one level too far.
Casinos can already eject and ban players they think are playing at an advantage. They have virtually limitless resources to detect what they would term fraud, and are not even legally required to pay out “fraudulent” winnings. The law has no place buttressing the house’s enormous advantages just because the house actually determines the mechanism by which a player manages to “cheat.” After all, when an addict loses his fortune there are no legal repercussions or claims on the casino for having exploited the addict’s mental defect. Why should the law bear on a player who, despite the unlimited scrutiny and safeguards of the house, manages to find and exploit a defect to his advantage?