16 March 2006

Canadian Gaming Association - Study on VLT Gaming in Canada

TORONTO, March 16 /CNW/ - VLT gaming in Canada is well-regulated and
operated with a high degree of public accountability
, according to a
fact-based, research report commissioned by the Canadian Gaming Association
(CGA).
The study shows that, since its inception, VLT gaming has returned almost
$20 billion to provincial government programs and services across the country.
The study also notes that Canadian provinces currently spend a total of
$75 million annually on problem and responsible gambling programs -- more than
any other jurisdiction in the world.
"Our study finds that VLT gaming in Canada is well-run and well-regulated
by Crown agencies with a high degree of public accountability," said the
report's author Robert Scarpelli of HLT Advisory Inc. "It offers fair games in
safe, age and access-controlled environments and raises significant revenues
for key government programs and initiatives. The research also confirms that
VLT gaming programs in Canada have been built upon sound principles of
economic development, combating illegal activities, and the generation of non-
tax government income."
The Canadian Gaming Association retained HLT Advisory Inc. (HLT) to
research and document the historic development and current state of video
lottery terminal (VLT) gaming activity in Canada.
"We think it is important for people to have a clear, comprehensive
picture of how VLT gaming developed across the country," said William Rutsey,
President and CEO of the CGA. "The research shows that VLT gaming is well-run
and well-regulated, that it has improved with stakeholder input, and that
Canada is leading the way with responsible gaming programs".
The report shows that VLT gaming in Canada has evolved and matured since
its introduction in the early 1990s, with a gradual stabilization of growth.
Since 1991, VLT gaming in Canada has generated over $25 billion in
revenues. During this 14 year period, provincial governments received
approximately $18 to $19 billion of this total, and site holders have received
approximately $6 to $7 billion.
Today the overall gaming industry in Canada is over $14 billion in size
as measured by annual revenue. The broad sectors of gaming include lotteries,
bingos, casinos and electronic gaming devices (such as VLTs). VLTs account for
almost 22 per cent of this total.
Canadian provinces currently spend a total of $75 million on problem and
responsible gambling programs. This includes approximately $62 million on
problem gambling treatment, research and awareness prevention initiatives and
more than $13 million in the area of responsible gambling promotion. Canada
spends more annually in this regard than any other jurisdiction in the world.
Eight provinces in Canada operate VLT programs: New Brunswick, Nova
Scotia, Newfoundland and Labrador, Prince Edward Island, Manitoba, Alberta,
Saskatchewan, and Quebec. While Ontario and British Columbia do not permit VLT
gaming, they do allow electronic gaming devices at racetrack facilities
(termed "Slots at Racetracks" in Ontario and "Racetrack Casino" in British
Columbia).
The CGA speaks to important national and regional issues as the voice of
the industry. The CGA's mandate is to create a better understanding of the
gaming industry by bringing facts to the general public, elected officials,
key decision makers and the media through education and advocacy.
"This study is an important step forward in fulfilling our mandate of
creating a better understanding of the gaming industry and the issues that
affect the thousands of businesses across the country that depend on it for
their livelihood," said Mr. Rutsey.
The report's authors, HLT Advisory Inc, provide specialized consulting
and support services to the Canadian and international hospitality, leisure
and tourism industries including gaming, lodging, travel/tourism, recreation,
sport, entertainment and public assembly venues.
For an online version of the report, including province by province
information, please go to www.canadiangaming.ca.


Backgrounder

Canadian Gaming Association

Study on VLT Gaming in Canada

Provincial landscape

- Eight provinces in Canada operate VLT programs in their respective
jurisdictions. These provinces include New Brunswick, Nova Scotia,
Newfoundland and Labrador, Prince Edward Island, Manitoba, Alberta,
Saskatchewan, and Quebec.

- These provinces introduced their VLT programs during the early to mid
1990s.

- While Ontario and British Columbia do not permit VLT gaming, they do
allow electronic gaming devices at racetrack facilities (termed "Slots
at Racetracks" in Ontario and "Racetrack Casino" in British Columbia).

Standard Economic Model

- All VLT programs are operated by a provincial government-controlled
Crown Corporation and/or agency.

- All provinces retain the majority of revenue (70 to 85 per cent of
win). Individual businesses that "rent space" for machines in their
establishments receive a share of win as well, ranging from 15 to
30 per cent depending on the province.

- All provinces pay for capital and virtually all operating costs.

- All provinces direct revenues to their general revenue fund, community
grants and/or specific program areas, such as health and education.


Financial return

- The report shows that VLT gaming in Canada has evolved and matured
since its introduction in the early 1990s, with a gradual
stabilization of growth.

- Since 1991, VLT gaming in Canada has generated over $25 billion in
revenue. During this 14 year period, provincial governments received
approximately $18 to $19 billion of this total, and site holders have
received approximately $6 to $7 billion.


- Today, the overall gaming industry in Canada is over $14 billion in
size as measured by annual revenue. The broad sectors of gaming
include lotteries, bingos, casinos and electronic gaming devices
(including VLTs).

- The market shares for lotteries, pari-mutuel and bingo have all fallen
50 per cent over the past 10 years - lotteries declining from
51 per cent of total gaming revenues nationally to 25 per cent,
pari-mutuel from 7 per cent to 3 per cent and bingo from 10 per cent
to 5 per cent. This decreasing interest in older gaming products is
mirrored worldwide. Picking up the slack, combined casino and
electronic gaming device market share has gone up more than
100 per cent, from 32 per cent of overall gaming revenues to
67 per cent.

- From a provincial perspective, the distribution of gaming industry
revenue by province in 2005 virtually mirrors the distribution in
1995. This revenue distribution also generally mirrors Canada's
population distribution.

Responsible Gaming

- Canadian provinces currently spend at total of $75 million on problem
and responsible gambling programs. This includes approximately
$62 million on problem gambling treatment, research and awareness
prevention initiatives and more than $13 million in the area of
responsible gambling promotion.

- Canada spends more annually on problem gambling and responsible
gambling than any other jurisdiction in the world.

- All provinces have developed and implemented responsible gaming
programs that include both general messages and specific features
installed on the VLT terminals themselves.

- VLT machine features include: permanent on-screen clock; amount
wagered displayed in dollars; pop-up reminders to display time played
on the machines; mandatory cashout; and problem gambling helpline
number prominently displayed.

- VLT program features include: responsible gaming posters, messages and
brochures displayed in all VLT sites; restricted access and view of
VLTs; restrictions on VLT advertising; staff training programs to
recognize sign of problem gambling, and research programs to test the
effectiveness of these machine and program features.

Rationale for VLT Programs

- VLT programs in Canada have been built on certain principles -
economic development, combating illegal activities and generating
non-tax revenues.

Rules and Regulations

- All provinces only allow VLT gaming in age-controlled liquor
establishments.

- All provinces have capped the number of VLT machines permitted in
their respective jurisdictions and/or reduced the number of sites
offering VLT gaming.

- The number of machines and/or sites is periodically reviewed and
adjusted.

- Responsible gaming features, programs and measures have been
implemented by all provinces covering their entire gaming industry.
This includes physical machine features dealing with education and
awareness. All new machines include these features.

- Most provinces have replaced their initial VLT machines since 2000.

- VLT machines in Canada are independently tested (hardware and
software) before they are put into operation.

- Every province that operates a VLT program has networked the program
so all machines in the network are connected electronically to a
central control hub. This allows the operator to monitor the activity
of each machine, ensuring they are not opened, there is no internal
tampering, and allowing for continuous monitoring of cash in machines
and payouts.

- Prize payouts across the country range from between 90 and
95 per cent. All VLT machines in Canada have wagering limit
restrictions programmed into the terminals.

- None of the VLT programs in Canada offer credit to patrons.



For further information: Paul Burns, Vice President, Public Affairs,
Email: pburns@canadiangaming.ca, Tel: (416) 304-6870, Mobile:
(416) 579-3922

2 comments:

Anonymous said...

My comment is for the goverment of alberta. These machines were never voted in by the people these machines were put in our communities without our approval. Vlt's ruin lives that is all they do.............., these machines are manipulated to make money a person can never win, let me say that different these machines steal from 1000's to give a little bit to one player. By the term little bit I will estimate that to be less than 3% of the total approx 50,000.00 into that machine. This is theft in my mind and all the machines are the same, they are all connected togther to come up with a payout percentage of less that 3%. If I am wrong how can there be a approx 1.7 billion profit from these machines. Here is a question for the government or to anyone who reads this. What is the total amount of cash put into the machines and what is the total profit by the machines???? this is something the government will never tell anyone I am sure. Also why is it that the player cannot tell how much they put into the machines like a computer account loss calculation, let me tell you why this is so the player has no proof of loss on any type of slot or vlt in this province so they cant or would have a very hard time to sue the government for their addiction to these machines and the theft these machines produce. Why do some albertans have addicitons to vlts, I will tell you why, its because these machines were thrown into the public without notice into our local hang outs that use to be fun to go to and were safe to go to. Now our children are next inline to become addicts on vlts or our family members. We didnt ask for these machines they were put into the communities to ruin our societies and they have. They have turned great people into nothings......good job alberta politicians. Its all about the money isnt it. If these politicians knew what they were doing they would have to steal more from the public, yes it is theft.

These machines serve no purpose for the public except for the government and bar owners and hotel owners. It is no wonder the economy is in the state it is in, if all this money didnt go into these machines it certainly would have gone back into the local economy, there would be less bankrupsies and home losses. We all will pay in the end for sure.

So after reading the publications by the aglc and the payout percentages and costs per play etc. the government are simply liars to the public.

People of Alberta is it time we ran our own province or do we sit back and watch the politicians ruin totally what we use to have and all of our futures.

Please dont tell me the province cant make make enough money from taxes and oil revenues, well maybe we cant the politicians have almost ruined what we had for oil production by raising their share of the oil revenues, in turn the oil companies stopped work in our province to look elsewhere for more profits, which in turn job losses happened, what will be next to happen??? I let you all figure that one out.

Cangamble said...

On average, slot machines are rigged to payout around 90% of what is totally bet into them. They are rigged for players to lose, of course, everyone knows that.
For a person to lose $1000, that person on average will be able to make around $10,000 in bets.