Gambling In Canada: 30 Years Plus and So What? Dr. Colin S. Campbell Dept. of Criminology Douglas College New Westminster, B.C. With thanks to the research assistance of Ms. Christianne Paras Engaging the Big Questions in Gambling Studies April 8-9, 2011 AGRI Conference Banff, Alberta 1 Major Trends & Issues in Canadian Gambling over the past 30 years. • given the breadth and scope of these issues, my comments and observations can only be thematic and descriptive. • Intent to stimulate thought and debate Engaging the Big Questions in Gambling Studies 2 BENCHMARKS • Symposia held in 1988 and 1993 by SFU. Engaging the Big Questions in Gambling Studies 3 1988 National Symposium on Lotteries & Gambling • 1st Canadian endeavor to bring together a range of: – Scholars – Government officials (including law enforcement) – Industry representatives – Special interest groups Purpose: “to discuss the multi-faceted aspects of gambling.” Engaging the Big Questions in Gambling Studies 4 Key Participants: • • • • • • • • • • Margaret Beare, David Dixon, John Dombrink, William Eadington, Henry Lesieur, Jan McMillen, David Miers, Jerome Skolnick, William Thompson, And a couple of teenagers – Indeed, one or two of you may have heard of them: • Rachel Volberg & Garry J. Smith. Engaging the Big Questions in Gambling Studies 5 1988 Hot Topics: • Eadington, McMillen, Lesieur, Smith • Culled from their contributions to the conference proceedings that were published as: “Gambling in Canada: Golden Goose or Trojan Horse?” (1989). URL: http://hdl.handle.net/1880/193 Engaging the Big Questions in Gambling Studies 6 Quick & Dirty Overview: Eadington (1989): 1. Strong preference for constraints on commercial casinos in Canada. 2. Canadian aversion to private sector ownership & operation of casinos contrary to most countries 3. Government-run casinos – regulatory oversight is prone to politicization. 4. Noted Canadian casino clientele were local regulars – not tourists – thus limited economic development potential Engaging the Big Questions in Gambling Studies 7 Lesieur (1989): - Little study of & little known about: 1. Impact of P.G. on the workplace. 2. Indebtedness of P.G.s 3. Gambling & Youth 4. Impact of PG on families & children 5. Co-occurring disorders & multiple addictions Engaging the Big Questions in Gambling Studies 8 6. P.G. & Crime 7. SOGS (1987) 8. PG Treatment Needs – only treatment available in Canada – GA & GamAnon. Engaging the Big Questions in Gambling Studies 9 Smith (1989): 1. Nexus of amateur sport/non-profit organizations in Alberta and Gambling. 2. Liberalization of laws & attitudes, facilitated by the “good causes” that are funded with gambling dollars. 3. Raised moral/ethical questions about the exploitative nature and regressivity of the charity ventures Engaging the Big Questions in Gambling Studies 10 McMillen (1989): 1) Noted the 1985 payment for the amendment to the Code – to “vacate” gambling. 2) Noted the elimination of an active RCMP role in policing gambling. 3) Speculation about the increased power of provinces within Canadian federalism. Engaging the Big Questions in Gambling Studies 11 4) Prediction of shift away from welfareoriented (charity) gambling; increase of gambling for profit. 5) Prediction of increased competition for gambling revenue; gloomy outcome for charities predicted. 6) Anticipated: increased concentration of ownership; decrease of home town operations; increase of transnational ownership. Engaging the Big Questions in Gambling Studies 12 7) Powerful operators and suppliers of technology will become politically influential. 8) Noted that no convincing evidence that expansion of casino gambling had made much of an impact on Australian tourism. 9) Commended Canada’s grass roots input to the policy process; untenable that gambling policy become the preserve of political or administrative elite. 10) Need for policy to be guided by principles; not by economic motives. Engaging the Big Questions in Gambling Studies 13 1993 2nd National Symposium • Purpose: To examine gambling developments in the 5 years since the 1st Symposium in 1988. • Proceedings published as: Gambling in Canada: The Bottom Line (1994) URL: http://hdl.handle.net/1880/259 Engaging the Big Questions in Gambling Studies 14 Key Participants: • • • • • • • William Eadington Sue Fisher Elizabeth (Betty) George Henry Lesieur Garry J. Smith William Thompson Rachel Volberg Engaging the Big Questions in Gambling Studies 15 1993 Symposium • Between 1988 & 1993, significant events occurred: 1. Introduction of VLTs – in Eastern Canada – non-age restricted premises. 2. Outing of PG – widely reported coverage of man attacking EGMs with a sledge hammer. 3. High stakes casino gaming appears 4. Series of prevalence studies initiated Engaging the Big Questions in Gambling Studies 16 Hot Topics of 1993 Key Speakers: Smith, Volberg, Lesieur Engaging the Big Questions in Gambling Studies 17 Smith (1994): 1. Ethics of government exploiting citizens, particularly the disadvantaged 2. Raised addictiveness of EGMs 3. Called for principles to guide policy. Engaging the Big Questions in Gambling Studies 18 Smith (1994): • Raised the question: Has expansion of gambling made Canada a better place to live? • Major Benefit: - the effectiveness of Canadian regulatory systems: • “There have been very few gambling related scandals, and when improprieties have surfaced, they have usually been dealt with promptly and thoroughly.” (p21) Engaging the Big Questions in Gambling Studies 19 Volberg (1994): • Noted the “pre-paradigmatic stage of research on gambling-related problems” and the disagreement & debate about them. Engaging the Big Questions in Gambling Studies 20 Volberg (1994) • Use of SOGS & Review of methodology of prevalence studies. Limitations & revisions to SOGS noted. • Pointed out that between 1980-1993 some 22 surveys of PG had been conducted including: AB, BC, MB, NB, NS & PQ. Engaging the Big Questions in Gambling Studies 21 Lesieur (1994): • Noted dramatic change in Canada since 1988 with respect to research. • Increase of prevalence studies • Increased prevention programs including Gambling Help Hotlines • Training for counsellors • Greater availability of treatment services • One half Canadian provinces had provided assistance to PGs and their families. • Need for the other half to follow. Engaging the Big Questions in Gambling Studies 22 4 Broad Domains can be Identified: I. II. III. IV. Political-Legal-Regulatory Issues Technological Issues Social-Economic Issues Academic Issues Engaging the Big Questions in Gambling Studies 23 I. P0LITICAL-LEGAL-REGULATORY ISSUES (6) 1. 1969 Amendment to the Criminal Code of Canada - Opened the door to provincial lotteries and to the expansion of charitable gaming in the form of bingos and casino gaming. Engaging the Big Questions in Gambling Studies 24 2. 1985 Amendment to the Code - Consolidated provincial authority over all gambling. - Gave legal permission for provinces to operate electronic gaming formats. - Start of a paradigm shift in Canadian gambling. Engaging the Big Questions in Gambling Studies 25 3. Provincial Monopolization: Executive Level Control - Gambling policy decisions typically kept out of provincial legislatures. - Decisions the exclusive domain of a policy-elite made up of select cabinet members and senior civil servants. - Lion’s share of revenues accrue to provincial governments. Engaging the Big Questions in Gambling Studies 26 Absence of Genuine Public Consultation 4. - At the federal level, last public consultation was in the 1950’s - Changes of the magnitude of the 1985 amendment entailed no public consultation. - Provincially, a series of “stake-holder” consultations are evident – but these are typically in camera with no verbatim transcription of proceedings. Engaging the Big Questions in Gambling Studies 27 5. Absence of independent policing and regulatory oversight. - Cooptation of regulatory personnel and/or policing authorities. - Aggressive and pro-active policing and regulation is thwarted by the revenueimperative of provincial polices. - Phenomenon of “regulatory capture” Engaging the Big Questions in Gambling Studies 28 6. Complete absence of a federal presence in Canadian gambling. - Disbanding of RCMP Gambling Specialist program in late 1980s. - Unlike, the UK, Australia, & USA, no national review of gambling and its impact in Canada. Engaging the Big Questions in Gambling Studies 29 II. TECHNOLOGICAL ISSUES (2) • 1. Introduction, Expansion, Domination of Electronic Gaming Machines (EGMs): - The most significant development - Cannibalization of revenue from traditional gaming formats: lotteries, bingos. - Consequences for non-profit, charitable sector – destabilization of their revenues. - Government revenue dependence. - Addictiveness for players. Engaging the Big Questions in Gambling Studies 30 • 2. Advent of Internet gambling • Holds the potential to supersede the impact of land-based EGMs – the omnipresence of commercial gambling combined with privacy, anonymity, isolation. • Still in its infancy • Near impossibility of prohibition • Alarming rates of PG Engaging the Big Questions in Gambling Studies 31 Internet Gambling: - Uncertain & unchallenged legal status of the Kahnawake Mohawk Nation – in the top 3 cites for the volume of Internet gambling transactions in the world. - Holds the potential for significant political, legal, economic conflict. Engaging the Big Questions in Gambling Studies 32 Internet Gambling: • Aggressive moves by BCLC – to capture and build Internet gambling customers. • Unilateral by-pass of municipal consultation. • $9,999.00 weekly limit possible. • Predatory marketing. • Intended to circumvent money laundering requirements. • Ethics of responsible gaming called into question. Engaging the Big Questions in Gambling Studies 33 Internet Gambling: • Canadian public has not totally come to terms with the wide-open availability of land-based gambling. • Ordinary Canadians – to this point unaware of the pervasiveness of Internet gambling. Engaging the Big Questions in Gambling Studies 34 III SOCIAL – ECONOMIC ISSUES (3) 1) Lack of a definitive methodology for assessing the overall impact of gambling on our community. • Williams, Rehm, Stevens (2011) point to 492 studies over a 36 year span. Engaging the Big Questions in Gambling Studies 35 • Observation offered by Eadington many years ago (circa 1980s) – now clichéd: • “Easy to quantify the benefits of gambling” Engaging the Big Questions in Gambling Studies 36 • Political Significance to this: Progambling forces have had a publicrelations advantage because of this. • Economic benefits dazzle decisionmakers. • Easy for gambling proponents to sidestep the negative consequences. Engaging the Big Questions in Gambling Studies 37 2) Problem Gambling - Emerges in the 1988-1993 time period as the gambling industry’s Achilles heel. - Fuels and is fuelled by a burgeoning “help industry” of: - researchers, treatment specialists, psychologists, psychiatrists, clinicians, public health experts, counsellors, and government bureaucrats. Engaging the Big Questions in Gambling Studies 38 3) Responsible Gambling – as an industry and government response to PG. - This too has spurred the growth of a cadre of professionals and research initiatives. - pro-gambling forces and provincial governments combine. - “Gambling neutral” - seek to placate growing public fears while introducing new gambling products, services, and institutions. Engaging the Big Questions in Gambling Studies 39 IV. ACADEMIC ISSUES (3) 1. Establishment of major research institutes in Canada: a) Alberta Gaming Research Institute (1999) b) Ontario Problem Gambling Research Centre (2000) Engaging the Big Questions in Gambling Studies 40 • c) Research centres: i) International Centre for Youth Gambling Problems and High-Risk Behaviors, McGill University (2001) ii) Centre québécois d'excellence pour la prévention et le traitement du jeu, Laval Université (1997) iii) Responsible Gaming Council (2001) iv) Gambling Awareness Nova Scotia (1998) Engaging the Big Questions in Gambling Studies 41 3. Series of Annual Conferences a) AGRI – since 2002 b) RGC Discovery – since 2000 c) Gaming Awareness NS – since 2004 Engaging the Big Questions in Gambling Studies 42 • 3. Establishment of 2 principal academic journals 1) Journal of Gambling Studies (est. 1985) 2) International Gambling Studies (est. 2001) Engaging the Big Questions in Gambling Studies 43 AND SO WHAT? Engaging the Big Questions in Gambling Studies 44 AND SO WHAT? • 1. Despite not inconsequential levels of funding for gambling research in Canada – what do we have to show for it? • 2. What effect has this research had on public policy? • 3. At the end of the day and after 30+ years, what do we know definitively? Engaging the Big Questions in Gambling Studies 45 MY ANSWER: NOT MUCH! Engaging the Big Questions in Gambling Studies 46 My Answer: Not much! 1. SEIG – studies inconclusive or contradictory, both negative & positive outcomes overstated. • Destination casinos – hold potential to bring in outside revenue and to create broad economic benefit. • How many Canadian casinos, despite the political blustering, are truly destination casinos? • Very few, I suspect. Engaging the Big Questions in Gambling Studies 47 • Increasing concentration of Canadian gaming suppliers. • Increasing foreign ownership. • No debate or research regarding how much revenue is drained from provincial economies. Engaging the Big Questions in Gambling Studies 48 2. P.G. – (and derivatives: awareness, prevention, treatment) principal subject of research & academic attention. • Other than damning indictments of the addictiveness of EGMs – not much. • In the face of compelling empirical evidence, lottery corporations, politicians, gaming operators downplay the negative impacts. Engaging the Big Questions in Gambling Studies 49 3. Regulation & Policing – - Persistence of conflict of interest with government simultaneous wearing the hats of regulator & beneficiary. - Gambling & crime nexus – not much known. - Credible media accounts of money laundering, frauds, organized crime – yet governments in denial. Engaging the Big Questions in Gambling Studies 50 4. Responsible Gambling – • Allied to the individualist-orientation typified by psychological understanding of P.G. • Just who is responsible? • Focus on the individual. • Not on state policies. • RG – emerges with and appeals to the rise of neo-liberalism, the minimalist state, consumer society. Engaging the Big Questions in Gambling Studies 51 • Focus on the individual as the primary site where responsibility lies, RG sidesteps such issues as access and availability. • Excessive gambling transposed into an individual problem and depoliticized. • Psychologists - and a host of other very busy people - have led this charge. Engaging the Big Questions in Gambling Studies 52 Thank you, very much. Engaging the Big Questions in Gambling Studies 53