September 4, 2009

Byline: Bill Rutsey

British Columbia is now locked in one of those public debates over gambling that often generates more heat than light.

The issue du jour is the decision of the British Columbia Lottery Corporation (BCLC) to include new games and give customers greater latitude to set their own limits on its PlayNow website. On Canada's other coast, the Atlantic Lottery Corporation (ALC) also took similar steps recently.

In both jurisdictions, the reasons for making these changes are sound and on the basis of good public policy that both protects the well-being of citizens and offers players more choice.

Media reaction on both coasts suggests something else -- namely, that higher betting limits expose families and individuals to gambling addiction, financial loss, and personal tragedy.

While it is correct to point out that a small minority of people are vulnerable to gambling addiction, it is absolutely incorrect to suggest that increased limits will create more problems.

Research shows that the proportion of problem gamblers (about one per cent of the entire population) neither rises nor falls with gambling limits or with the numbers of people involved in gambling. This was one of the firm conclusions in an exhaustive study -- Problem Gaming Prevalence Research: A Critical Overview -- which reviewed more than 100 studies of problem gambling prevalence conducted across Canada and around the world over the past 20 years.

The Atlantic Lottery Corporation and BCLC have changed their online gambling rules in the face of offshore gambling sites that are now attracting billions of dollars in gambling revenues globally, on an annual basis. In fact, it is estimated that Canadians are currently spending more than one billion dollars annually on online gambling sites – and approximately $87 million in B.C. alone.

Clearly, this is a rapidly growing worldwide industry, and the impacts are only beginning to be understood.

We do know this much, however -- that Canadian online gamblers are increasingly trusting their money to websites that are not subject to Canadian regulatory oversight, have no limits, and offer little to no help to problem gamblers.

We also know that organizations like BCLC operate (appropriately) in the intense spotlight of ongoing public scrutiny with polices, systems and support to deal with issue of problem gambling. Indeed, Canada's gambling industry contributes more than $100 million annually to the promotion of responsible gambling -- which makes this nation the world leader in this area.

In this overall context, we believe that new gambling limits in B.C. and Atlantic Canada will benefit gamblers and society in general.

For one thing, players will now have the option of spending their online dollars within the province to the benefit of its citizens.

Secondly, the changes give players more choice. Experts say that fostering player responsibility -- one key goal of corporations like BCLC and ALC -- is more effective than placing mandatory restrictions on all players.

It should be remembered, as well, that the vast majority of Canadians who gamble say they do for fun, not money.

Playing is a consumer choice -- and right now that choice is taking the benefits of playing outside the province in ever-increasing numbers.

In light of these facts, the argument for getting government lottery corporations out of the gambling business entirely seems particularly threadbare. Instead, the public interest lies in responsible, well-managed lottery corporations that take their role seriously enough to compete for market share, while protecting consumers at the same time.

Thousands of years of human history suggest, quite forcefully, that people will gamble because they like to gamble. Our shared goal, most recently demonstrated by BCLC and ALC, is to provide gambling options for people that are safe, fun, regulated and responsible. That's good public policy.

Bill Rutsey is president and chief executive officer of the Canadian Gaming Association