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Winnipeg Free Press - PRINT EDITION

Province loves sound of VLTs

Reliance on revenue from gambling has doubled since 1992

By: Larry Kusch

23/07/2009 1:00 AM | Comments: 14

$13.67 billion: Canadian net revenues (amount wagered, minus winnings and prizes) from government-run lotteries, VLTs, casinos, etc., in 2008, down slightly from $13.7 billion the previous year.

ALLEN MCINNIS / CANWEST NEWS SERVICE ARCHIVES Enlarge Image

$13.67 billion: Canadian net revenues (amount wagered, minus winnings and prizes) from government-run lotteries, VLTs, casinos, etc., in 2008, down slightly from $13.7 billion the previous year.

When it comes to the take from lotto tickets, VLTs and casinos, Manitoba is more than hooked on gambling.

A new Statistics Canada report shows the provincial government's reliance on gaming revenues has doubled since 1992.

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Only two other provinces, Alberta and Saskatchewan, earned a greater share of their revenues from gaming.

And when it comes to placing bets, Manitoba had the highest number of households -- 56 per cent -- who said they bought lottery tickets, played bingo, visited casinos or used slot machines.

The number-crunching of Manitoba's love affair with Lady Luck comes even as StatsCan shows Canadian spending on all forms of government-run gambling seems to be levelling off after rising dramatically over the past few decades.

Gambling profits in Manitoba last year, at $358 million, were nearly three-and-a-half times higher than they were 16 years earlier, the report said.

And gambling revenues in 2006 accounted for 5.3 per cent of Manitoba's overall revenues that year, compared with 2.5 per cent in 1992, it said.

Only the treasuries of Alberta and Saskatchewan, at 5.5 per cent and 5.4 per cent respectively, had a greater addiction to gambling revenues. The national average was 4.8 per cent.

Meanwhile, Canada saw its first decrease in revenues from government-sponsored gaming in 16 years in 2008, although the drop was marginal -- $13.67 billion versus $13.7 billion in 2007.

The wide-ranging federal report showed Manitoba households spent an average of $709 a year on gambling in 2007, fourth highest in the country, though well back of Alberta's $927.

That year, 56 per cent of Manitoba households participated in at least one form of gambling -- highest in the country -- although several other provinces came in at 55 or 54 per cent.

MLA Cliff Graydon (Emerson), the Conservative party's gaming critic, said Wednesday he's not surprised by the Manitoba numbers, but he is concerned.

"(The report) actually indicates that the government is more and more addicted to the revenue (from) gambling," he said.

Graydon said Manitoba should spend more on gambling prevention and rehabilitation, rather than encouraging increased gaming.

He decried the installation of ATM machines inside Manitoba casinos and the introduction of reward cards that allow gamblers to collect points -- towards merchandise and meals at casinos -- based on the amount of money they spend at slot machines.

"As we go further into a recession, I think you're going to find that our ratio of gambling will go up. We'll have a lot more problem gamblers," Graydon said.

Gerry Kolesar, supervisor of problem gambling services for the Addictions Foundation of Manitoba, said, however, the economic downturn has not been accompanied, so far, by an increase in people seeking the agency's help.

The number of foundation clients -- both gamblers and family members -- has remained steady at about 500 a year in recent years and is not rising, he said.

The same goes for the number of calls the ADM has received on its helpline, which has remained steady at 3,000 to 3,200 per year.

Susan Olynik, vice-president of communications and public affairs with the Manitoba Lotteries Corp., said the corporation's revenues are currently "fairly consistent."

Corporation profits stood at $296.8 million in 2007-2008, a five per cent rise over the previous year. The 2008-2009 results will come out in September or October.

larry.kusch@freepress.mb.ca

Republished from the Winnipeg Free Press print edition July 23, 2009 A3

14 Commentscomment icon

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Of course the province loves gamblers. All that money the province makes goes to pay off there own gambling debts. They hire someone to do a job. They fudge it up and still get paid. So now they hire another company to do the same work, and so one job and two different companies get paid. Because all Politicians are inept at doing, not one but all jobs wrong, or they just like giving away money to incompetent companies

I see it as a vicious circle in a way. Many people are using "family funds" to throw away in these government sanctioned machines. How many family members are turning to the very crime the government is trying to control completely because of their addiction to gambling. I guess that is one study we will never see results on. If there was not a machine placed at almost every place you go to, would there be so many problem gamblers. No one admits they are a problem gambler until they hit rock bottom.

Winnipeg should make it's largest riverboat into a casino...that would be a pretty nice tourist attraction and increase revenue. There was a recent article about how our riverboats are failing; if they converted it into casino and have cruises on the Red that would benefit our tourist industry and the riverboat business too.

Alcohol, Tobacco, Gambling .... why not marijuana and prostitution?

It's only fair, alcohol kills and ruins lives, tobacco kills and ruins lives, and gambling ruins lives so why not tax a doobie and a hooker. Don't give me the BS about pot leading to heroin etc. or all women are victims if they are prostitutes. License and tax all vices because they are not going to go away.
All you religious folks out there that like to condemn everyone's vices ..... just say no thanks and shut up.

The people who gamble are the least to afford it. It preys on the desperate people of our society.

There are VLT's in every major bar in the South Western zone of Winnpeg. Just because there isn't a 'casino' don't think there isn't a problem.

Its all fine and dandy to call gambling and even cigarette taxes a 'tax on the stupid' when you're not the one with a problem. Yes, initially the choice to sample gambling is a choice. But addiction is more than that. I have known several people who were addicts of different things, but one common element remains. They need help to control themselves. Whether it be guidance or physically removing them from the source of the addiction.

The major issue here is why the government not only endorses such a thing, but makes money off of it. Cigarette's and booze weren't a challenge enough? I'm curious to see what the 'legallize' and tax next.

I love to gamble. I like playing slot machines, because they're fun, and I enjoy it. I am fully aware that I will probably walk away down money instead of up, but that's a risk I'm willing to take. Like I tell my boyfriend, he turns to smoking to deal with stress and enjoyment, and I turn to gambling. They're essentially the same thing. What he spends in a year on his habit, is about the same as I spend in a year on my habit.

With that said, there are people who have addictive personalities, who get so involved, and honestly believe the odds are in their favor. It's the same as drug addiction, alcohol, cigarettes or shopping. People enjoy it too much, that it consumes them. I don't feel bad for them, but I can understand how it happens. It's one thing to blow money you already have on any addictions, and it's another to LOOK for money to feed your addiction. That's where people get in trouble. I don't go unless I have some extra cash I want to spend.

It's unfortunate that so many people get so addicted to gambling. It's also terrible that many of these same people are the ones who complain that they cannot afford to pay their bills and believe that "companies" such as MB Hydro should be subsidizing part of their bills. But guess who is actually paying for these things? Not the companies or big corporations, but rather the people who are a little smarter with their money. I don't think we'll ever win.

I'm with T-Rev. I use VLT's, I enjoy them, I have fun with them, and I don't think I've ever come out ahead more then 5 bucks with them. And you know what? I don't care. They're for fun. They're not an investment strategy. Blaming someone else for one's own inability to walk away doesn't solve the problem.

I'm not saying addiction isn't a serious problem. But there's people out there that can help. If you're addicted, go get help. I wish you the best. If you're NOT addicted, and you use VLTs too much, then frankly, that's exactly what they are, a tax on the stupid.

VLTs are not a tax on the poor, they are a tax on the people (poor or not) who play them. If you're poor, then why go and blow money you don't have? I worked at one of the casinos in Winnipeg for just over 7 years, and still never got why people would come in day in and day out (from the time the casino's open until they close) to play VLTs, bingo, or table games. I now know, it is an addiction. A lot of people go poor, bankrupt, etc from gambling. Like I said to customers while I was working, "It's your choice to be here, not mine. It's a job and I don't complain for losing money because I get paid to be here". Maybe these people should look into applying at the casinos for a job, then at least they would have money instead of losing it. I don't really feel bad for these people. They lose every day while they are their. It's just as anything else, it's YOUR choice.

actually VLT's are considered a tax on the stupid

Take a look where the province/city had built Club Regent & McPhillips Street Station.

The Government KNEW the demographics of those areas and they KNEW that once those Casino's were built that their so-called "Revenues" would be pouring in. It's like a reverse Robin Hood-stealing from the poor to give to the rich!

However, a person has to take responsibility for his/her actions and realize that Gambling has the ability to become an addiction, much like alcohol, drugs, etc. It's like playing with fire and hoping not to get burned!

I often wonder why a Casino was never built in the South West and/or West part of Winnipeg.


I have to wonder if this revenue is considered when they announce tax freedom day as early July in Manitoba. Does "tax freedom day need to be adjusted"? It really is just another method of taxation.

VLTs are a tax on the poor.

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