WARREN BUFFETT: Humans have a strong inclination toward gambling.
When gambling was legal mainly in Nevada, participating required traveling far or violating the law.
As states recognized the revenue potential, they progressively eased access to gambling.
The more accessible gambling becomes, the greater the participation.
For instance, four decades ago I purchased a slot machine and placed it on the third floor of my home for my children.
I allowed them any allowance they wished, provided it was paid in dimes, and I typically recouped the amount by evening. (Laughter)
I viewed it as a teaching opportunity.
Although they never visited Las Vegas, the machine was readily accessible at home.
The payout ratio was poor, but that reflected my parenting style. (Laughter)
Nevertheless, gambling remains an activity people will continually pursue.
Consequently, I do not object to casual gambling or similar pastimes.
However, I believe gambling functions largely as a tax on ignorance.
In effect, it taxes those who wager against unfavorable odds, allowing individuals like me to avoid such levies.
I find it socially objectionable when a government exploits citizens’ vulnerabilities instead of serving them. (Applause)
When a government facilitates the use of Social Security funds for slot machines or lotteries, the action appears cynical.