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Canadian Gambling: On the Rise !

We all know that gambling means lots of money for the government. While for problems gamblers, it means losing, health and work and family problems.

In its defense against a gambler, who recently sued the Ontario Lottery and Gaming Corporation after losing almost $500,000 Canadian dollars, the corporation holds that casino gambling is a form of entertainment and that patrons pay for casino “entertainment” through wagering “just as theater patrons pay for a ticket to a play or sports fans pay for a ticket to a game.”

A research from Statistics Canada shows that net revenue from Canadian government-run lotteries, video lottery terminals, casinos and slot machines (not in casinos) rose steadily from $2.73 billion in 1992, to $13.67 billion in 2008.

It means the average gambling revenue per person 18 years old and over in 2008, were from $114 in the three territories to $825 in Saskatchewan, with a Canadian average of $528.20.

Ontario Lottery and the Gaming Corp. stats show that the revenue generated from legalized gambling in Ontario alone was $6.4 billion in the 2008-2009 fiscal year, compared to $6.2 billion during for 2007-2008.

Big gamblers are losing more than $1-million a year apiece and others are dropping hundreds of thousands of dollars at some Canadian casinos, according to documents that reveal for the first time the magnitude of gamblers’ betting habits.

Documents obtained under Freedom of Information legislation show the top gamblers in British Columbia and Ontario are losing as much as $1.8-million and $701,000, respectively, while many others are blowing sums in the low six figures. Loto-Québec refused to provide similar data, saying it constitutes commercial information that is competitively sensitive, and that even unnamed players could possibly be identified.

Research has established that about one-third of government gambling revenue comes from problem gamblers. Data found on player’s cards is not used to help potential problem gamblers, but often to reward them – and to keep them coming back for more. Player’s cards resemble hotel keys and are inserted into slot machines or handed over to dealers by the gamblers themselves to collect various rewards (like free hotel rooms, dinner, merchandise, cash back and so on).

Here are some points to consider whether you have gambling problems or not:

* Constantly thinking or talking about gambling.
* Spending more time or money on gambling than you can afford.
* Finding it difficult to control, stop, or even cut down gambling.
* Gambling more in order to win back losses or getting out of financial trouble.
* Thinking that your gambling will get under control as soon you have a “big” win.
* Borrowing money, selling things, or committing criminal acts in order to get money for gambling.
* Gambling until all of your money is gone.
* Gambling to escape personal problems or to relieve feelings of anxiety, depression, anger, or other negative emotions.
* Having arguments with friends or family about money and gambling.
* Gambling instead of attend family or other social functions.
* Neglecting work or school because of gambling.

British Columbia is betting higher !

Since BC Premier Campbell embarked on the biggest, most aggressive gambling expansion program ever seen in Canada with the changes made to gambling in British Columbia in 1997, gambling in the whole province have been stacked up.

First, the British Columbia Lottery Corporation is going more aggressive than ever. Starting this month, every adults in British Columbia can deposit into their personal E-gambling accounts, managed by the province, the sum of $9,999 every week. Visa and MasterCard accepted. Until this month, registered players were allowed weekly account transfers of only 120 Canadian dollars.

A gambler in British Columbia can now build up to $520,000 in his or her government-controlled account in one year and will soon be able to wager the entire sum on one virtual poker hand, one virtual spin of the wheel. No other jurisdiction in Canada or in the whole United States offers online casino-style games.

In Canada, only the Atlantic provinces offer online sports betting and lottery draws, along with British Columbia. Officially, no other provinces are contemplating the introduction of Internet gambling so far.

Besides offering internet betting, soon the BCLC (British Columbia Lottery Corporation) will offer  casino-style betting on games such as blackjack, roulette and poker, designed for computers and portable devices (Ipod, Iphone, cellphones, and more).

Last month, Mr. Graydon from BCLC noted in a newspaper opinion that “Gaming online is growing at a rate of 20% a year. Globally, the industry is worth a staggering $12-billion a year. Simply put, if British Columbians wish to gamble online, we’d like them to do it as customers of BCLC.”.

Seen as a good thing from gamblers, others noted that problems will but arise. In a study released earlier this year (Internet Gambling: Prevalence, Patterns, Problems, and Policy Options), one can find: “The prevalence of problem gambling is three to four times higher in Internet gamblers compared to non-Internet gamblers,” reads the report. “Having problems with gambling is one of the features that best predicts someone is an Internet gambler.”

The report also notes “a significant proportion of online gambling revenue comes from problem gamblers (41.3% in Canada, 27% internationally).” Canadian Internet gamblers have “relatively high, past month rates of substance abuse (23.3% for illicit drugs).” Use of illicit drugs “is statistically associated with Internet gambling,” the report notes.

Though the BCLS is doing reasonable steps to help problems gamblers. Should a gambler in British Columbia find himself losing control, betting beyond his means, having suicidal thoughts, counselling is available. The government provides this help through its gaming policy and enforcement branch.

The whole province is booming with gambling: 17 full services casinos and 10 196 slots machines.

The province is getting since 2001 a yearly increase in gambling revenue of 50 millions Canadian dollars (308 millions in 2001/2002 for 658 millions in 2008/2009). Internet revenue gambling were 0 dollars in 2001/2002 and are now up to 23.5 millions for 2008/2009. The province is expecting around 34 millions for the 2009/2010 fiscal year.

Manitobans: Top Gamblers In Canada

A study by Statistics Canada, released on July 22nd, shows that Manitobans are the most avid gamblers in Canada.

The same study by Statistics Canada says gambling revenues in 2008 dropped for the first time in 16 years. Canadians were putting less money into lottery

tickets, horse racing and video lottery terminals as a whole. But the Canadian drop in gambling revenue is pretty benign because the relatively small losses are offset by gains elsewhere. While lotteries might be losing popularity, casinos are drawing more people in.

56% of all Manitoban households are involved, a way or another, in gambling activities like casinos, VLTs, bingos, lotteries and others. In whole Canada, Manitoba has the highest percentage though most other provinces are not far behind.

The same study shows that Manitoba has the highest percentage of people, 25%, playing VTLs, slot machines and similar casino games. The StatsCan study shows that the Manitoba government trails only Saskatchewan and Alberta in per capita gambling profit.

It is important to consider the report does not take into account First Nations Casinos and charitable revenues. Those amount can be huge in some provinces.

The Addictions Foundation of Manitoba reported those numbers coincide with those of gambling addicts in the province.

A study done by the Addictions Foundation of Manitoba in 2006 but only released summer 2008 shows that Manitoba’s rate of problem gambling ( around 1.4% of the general adult population) is slightly higher than the Canadian average. The AFM is treating about 500 people every year besides handling over 3000 call to its help line.

The report, from Statistics Canada, shows that the Manitoba provincial government got $645 million in gambling revenues in 2008. That amount is the one compiled once prizes and winnings have been deducted. $358 million from that money profited to the government, once operating costs were deducted. It includes non-gambling casino revenue like concerts and restaurants.

Gambling generated $13.6 billion in revenue for governments across Canada in 2008.

Saskatchewan brought in the highest gambling revenue per person ($825) followed by Alberta and Manitoba.

Gambling was still going strong in prosperous provinces such as Saskatchewan.

Gaming in Manitoba has held steady despite the recession. The Manitoba Lotteries Corp., said half the province’s residents bought a lottery ticket in the last month. While almost one-third have been to a casino in the last year.

The Manitoba Lotteries annual report shows the province’s gaming revenue goes generally into spending like health care and education. A smaller portion is used for municipal grants, economic development and the Winnipeg Police Service.

The same study from Statistics Canada shows that older, single men and women were most likely to engage in at least one form of gambling.

Some 50% of women living alone and between the ages of 45 and 64 said they gambled.  While 54% of single men in the same age group admitted to buying lottery tickets, playing the slots or going to bingo.

This very interesting study is available on Statistics Canada website.

Canadian Government Against Online Gaming in Kahnawake

The Canadian federal government said yesterday it is considering new measures to stamp out Internet gaming sites based on a native reserve in Quebec, in a move that could spark conflict between Ottawa and Canada’s First Nations ahead of a second national “day of action” this summer.

The government deems the 400 or so poker and sports-betting sites operating from the Kahnawake reserve near Montreal to be illegal, but neither federal not provincial governments have attempted to enforce the law. Now Ottawa is reviewing that position.

“Following recent concerns surrounding Internet gambling in Canada, the Minister of Justice [Rob Nicholson] has asked his officials to examine whether the enforcement of the Criminal Code provisions could be assisted with other measures,” said Genevieve Breton, Mr. Nicholson’s director of communications.

The “other measures” are understood to be moves to restrict banks and credit card companies from conducting financial transactions with illegal Internet operators. Similar legislation was enacted in the United States two years ago.

The Mohawks of Kahnawake say these laws do not apply to them since they are a sovereign nation. They also cite section 35 of the Constitution, which was inserted to protect native culture. The Mohawks say that gaming has been central to their culture as a means of settling disputes through competition, not violence. Other native groups, such as the Alexander First Nation in Alberta, have said they plan to emulate Kahnawake.

Owners of horse-racing tracks, such as Great Canadian Gaming Corp., say they pay $1-billion in tax receipts every year to various levels of governments and incur huge expenses putting on the races. “These offshore operations just poach horse-racing and no one can do anything about it. They’re parasites on the butt of Canada,” said Ross McLeod, chief executive of Great Canadian Gaming, which owns four tracks in Canada.

The track owners have also suggested that governments force Internet service providers to block the sites from Canadian bandwidth. “I expect the government to do the right thing and protect our country’s interests,” Mr. McLeod said.

Chuck Barnett, who is a member of the board of supervisors for Mohawk Internet Technologies, a utility company that provides connectivity services for the site owners at Kahnawake, sees Ottawa as a foreign government that has no business regulating activity on Mohawk territory. “However, if I were a Canadian, I might instead be more interested in how explicit legislation could serve as the catalyst for a potential source of economic development, employment and revenue through taxation,” he said.

This view was echoed by Michael Lipton, a Toronto lawyer who specializes in gaming law. He said the horse-racing industry has had a monopoly on gambling in Canada for years, with Woodbine Entertainment currently holding a lock on government-sanctioned online horse betting.

“I guess if I had a monopoly, I wouldn’t want anyone to compete against me either,” Mr. Lipton said.

He said the United States has faced serious technical difficulties implementing restrictions on the payment system. “They are completely bogged down on how to block this system.”

He acknowledged the Mohawks have had some problems with fraud. The Kahnawake Gaming Commission, which regulates Web sites operating from the reserve, fined one popular Web site — Absolute Poker –$500,000 after players complained of irregular betting that was traced back to someone associated with the site. But he said most operations are transparent and credible.

Rather than attempting prohibition, Mr. Lipton said the government should bring the Kahnawake sites into the system and regulate them. He said this would protect the vulnerable, guard against money laundering, bring in tax revenue and provide a competitive edge in the gaming software market in terms of international trade.

“I think [Ottawa] should embrace this and recognize that people don’t want to be in a position where the government tells them what they can or can’t do in the peace of their own home,” he said.