Gambling in Canada 13 Billion Dollar Industry

Scott Stinson and Jennifer Miller CanWest News Service and Vancouver Sun TORONTO -- Government-run gambling has become an almost $13-billion industry in Canada, with about 87,000 gambling machines, 60 permanent casinos and 33,000 lottery ticket centres pumping money into provincial coffers, according to a new study. While the report from the Canada West Foundation shows that growth in the gaming industry has levelled off this decade after a dramatic rise in the 1990s, it notes provincial governments are still heavily reliant on revenues generated from things such as card tables, lottery tickets and slot machines. Gambling-related profits of $6.3 billion now approach what comes in from taxes on fuel and liquor. Gambling in B.C. has experienced significant growth in the past four years, despite a levelling off and even a decline in some areas of the country. The expansion is due to more slot machines and new, bigger casinos in the province. B.C. has 19 casinos, the most of any province. And there are 161 per cent more slot machines in the province than there were in 2000 -- a total of 5,673 in 2004 -- according to the report. Howard Blank, vice-president of Great Canadian Casinos, said the increase in the number of slot machines in the country can be attributed to the overall expansion of the casino industry from a games-based experience to something more focused on entertainment. People aren't just coming to gamble at B.C. casinos, he said. They are coming for the concerts and other live entertainment, the restaurants, and the hotels. For example, the Coquitlam casino is currently expanding and adding a theatre. "It's not just slots," Blank said. "The majority of people are coming for the whole experience." This trend toward overall adult entertainment in B.C. casinos also means increased traffic from both tourists and locals -- which translates into more demand for slot machines, he said. Before the Liberal government took power in B.C. in 2001, there was a cap of 300 slot machines per casino. Since then, the Liberals increased the provincial cap, then removed it entirely. The River Rock casino in Richmond has 1,000 slot machines. Isabel Minty, a spokeswoman with Citizens Against Gambling Expansion, said more slot machines in B.C. mean more vulnerable gamblers are being targeted. "It is the most addictive form of gambling," she said. "It is also where the most vulnerable people gamble." Slots appeal to the "unsophisticated" gamblers -- those with the least education and the least disposable income, Minty said. "They're targeting the ones they can clean their pockets." B.C. and Ontario are the only two provinces that do not allow video lottery terminals (VLTs). Critics are calling on governments to cap the expansion of gambling services until the social impact of the programs can be better assessed. Jason Azmier, senior policy analyst with the Canada West Foundation and author of the report, said the rapid growth in government gambling profits -- which rose 275 per cent between 1992 and 2004 -- is cause for concern considering that new frontiers in gaming such as the Internet, cellphones and interactive television have yet to be tapped by the provinces. "The past expansion of gambling in this country has been driven by the fear of loss of revenues to other jurisdictions," he said from the offices of the Calgary-based think-tank, noting that if history repeats itself, governments might decide they want a slice of the Internet-gambling pie. "If we are on the verge of future expansion, we need debate on the issue first," Azmier said. Nina Littman-Sharp, director of the problem gambling program with the Centre for Addiction and Mental Health in Toronto, agreed the prospect of governments moving into the Internet and other gaming arenas is daunting. "There are lots of technological ways [to gamble] that are really quite scary," she said. "We're really concerned about anything that could increase availability, particularly for young people." Rob Williams, a professor with the Alberta Gaming Research Institute at the University of Lethbridge, said Tuesday the Canada West Foundation report "certainly illustrates the pervasiveness of gambling ... and how the economic agenda of gambling seems to be outpacing the social considerations. "What seems pretty clear is what's shaping the policy agenda is largely market economics. If revenues keep increasing, further opportunities [to gamble] keep becoming available," he said. "Governments are starting to say the right things, but there's also a lot of doublespeak," Williams said, noting that Alberta, for example, often cites its hard cap on controversial video lottery terminals (VLTs) -- no more than 6,000 are allowed in the province -- but does not mention the lack of a cap on slot machines, which have grown by 50 per cent in the past several years. "A lot of the so-called responsible gaming efforts are window-dressing," he said. Representatives of the provincial gambling agencies disagree. The Manitoba Gaming Control Commission, for example, publishes its research agenda, which includes studies to identify the number of adult and youth problem gamblers in the province and to "address the gaps in public knowledge about gambling." Elizabeth Stephenson, the commission's director of communications, said provinces have begun to take action to better educate gamblers, in part because it took a few years of widespread legalized gambling to understand the problems it brings. A NATIONAL HABIT: Canadians spent $12.7 billion on gambling in 2003-04, with British Columbia in third place after Ontario and Quebec. In recent years, in B.C. as well as the nation, the greatest gambling industry growth has been in slot machines. Figures are for 2003-04. 47,876 Number of slot machines in Canada. A 52.2% rise since 1999-2000. $1.68 Gambling losses per B.C. adult per day. $1,080 Estimated annual spending of average Canadian household on gambling. Education: $1,007. Alcohol and tobacco: $1,489. $23 Money B.C. spent on treating each at-risk and problem gambler. At 0.55% of net revenues, it is second-lowest after Newfoundland. 10 Rank of B.C. among all provinces in terms of the profit margin (38%) it takes from gambling revenues. Alberta is highest at 71%. Source: Canada West Foundation Vancouver Sun Ran with fact box "A National Habit", which has beenappended to the end of the story. © The Vancouver Sun 2005