"Gambling should be considered as fun and entertainment, not as a way to make money."(1) The previous statement is fundamentally flawed. Actually, it’s an out-and-out lie. Making money is its principal aim, and an efficient way of doing so, but only for the half on the inside of the pit.
Does the average person gamble for the fun of it? Ask the question another way: does the average person intentionally risk losing their money because they enjoy the experience? The average person gambles to make money. The "fun and entertainment" is what we tell ourselves we’ve had when we lose, to quell those feelings of guilt and frustration. Unconsciously we fool ourselves into believing it was a fair trade; a night out for a hundred bucks, no big deal. But what did you get for your half of the transaction? Nothing. You were sold hope. Imagine a vending machine in which your $1 investment could possibly (read: probably) result in you getting nothing in return. "It’s their choice – the cynical will say. But it is the governments … who are suddenly calling on [the] citizens via vast advertising campaigns to 'Escape to the Jungle' for $2 with a possible return of $1000. Or win 'Instant Millions' for $5 with a possible return of $1 million."(2) Sound familiar? The gaming industry exists to make money, period. Everything else involved, from the “transparency” marketing campaigns, to the annual philanthropy, it’s all business posturing so that the industry can continue to increase its revenues.
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In the 2007-2008 year (ending 31 March), Ontario gambling net revenue was between $4.8 and $5 billion(3). In the same year, the Ontario Lottery & Gaming Corporation (referred to as OLG henceforth) claims to have generated "$3.7 billion annually in economic activity in Ontario." These numbers are a bit misleading. As they'll show below, the dollar figures in tangible benefits are substantially less than that. A report on the same page claims that the OLG has produced $4.6 billion as direct and indirect benefits to the host communities since its conception in 1999. That's right, evidently in one year the OLG made in profit, what it contributed to the province over a decade. Although the gamblers out there must appreciate the 10:1 odds, it leaves you to wonder where all that money is going.
According to the Canadian Partnership for Responsible Gambling's "Gambling Digest 2007-08" report, the numbers break down as follows:
- · Total of $4.8 billion in revenue, which averages out to $471 per person, over the age of 18.
· Approximately 1.8% of the provincial revenue is derived from the gaming industry
· $175 million of that is donated to charity, but not without a caveat: "Data should be interpreted with caution, as charitable organizations are not always required to submit financial reports for their gaming operations. It often depends on the amount of revenue raised and/or the value of prizes awarded. Figures may also be estimates only and may exclude licences issued by First Nations and local municipalities." Fair enough. Numbers may be inaccurate.
· $37 million is distributed to Problem Gambling initiatives, again, read the fine print: "There may be overlap between categories and figures may be estimates and/or budgeted amounts only."
· Another $6.8 million is distributed to the Responsible Gaming industry (ie: Crown corporations) for their own responsible gaming initiatives (numbers may be estimates, again)
· 2.1% of the annual revenue was donated to problem gambling, with a national average of 1.4%
· $25 million is distributed to the Federal government, $79 million to the Municipal governments (some, if not all of which they are required to pay)
According to my math, that leaves approximately $4.4 billion dollars in profit. If we excuse a small margin of error, let’s say even another $1 billion, that's an estimated $3.4 billion dollars left on the table. Money changing hands, no services rendered... almost literally.
Returning to the original point of the article, this "entertainment gaming" bluff needs to be pushed all-in. We hear talk of social responsibility as a vision of the OLG, but its very existence is a negation of that tenet. The idea is an attractive nuisance; a seductive chance to win more for less, aimed at the most discouraged portions of our population. Current statistics place the problem gambling prevalence in Ontario at about 3.4%. Unfortunately this number is likely to be much higher, due to the difficulty in accurately measuring individual gambling expenditures. In a demographic study of gaming revenue in Ontario (and as such, how it relates to problem gambling), doctors Robert Wood and Robert Williams provide insight to the corporate mentality that is the essence of social responsibility: "Economic benefits of gambling in Ontario may offset costs arising from problem gambling. For instance, there is usually a significant economic gain to jurisdictions that derive a substantial portion of their gambling revenue from tourists. Not only is there an influx of out of jurisdiction revenue from tourists, but many of the attendant social problems go home with the tourists. [my italics added]"(4)
Gambling (and the direct or indirect encouragement of it) in and of itself, is irresponsible. "Current levels of government-sponsored gambling may be [read: are] contrary to the interests of the general population, and inconsistent with the purposes of government." The creation of government sponsored scholarships, jobs, and charity foundations are well and good, but as citizens, spending $4 billion annually on a phantom chocolate bar is unsustainable and frankly ridiculous.
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References:
1. http://www.olg.ca/about/economic_benefits/index.jsp
2. The Unconscious Civilization by John Ralston Saul, pg. 149
3. http://www.cprg.ca/articles/Canadian_Gambling_Digest_2007_2008.pdf
4. http://www.gamblingresearch.org/download.sz/Williams_wood.pdf?docid=7617
Misc.
http://www.knowyourlimit.ca
http://www.olg.ca/assets/documents/economic_benefit_reports/ontario.pdf3
http://pobrecito.deviantart.com/art/roulette-37177652
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