spokesperson, gwn-o - nancy langille · 02/05/02 - gwn-o 2 gwn-o contacts new website central...

02/05/02 - GWN-O

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PRESENTATIONGAMBLING WATCH NETWORK

ONTARIO

GWN-O

Spokesperson, GWN-O- Nancy Langille -

OSUM 2002 Conference“STRIKING THE BALANCE”

(The Organization of Small Urban Municipalities of Ontario)- Town of Saugeen Shores -

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GWN-O CONTACTS

New Website

www.gamblingwatch.ca

Central E-mail

[email protected]

Spokesperson: Nancy Langille

Phone (613)969-1571 Fax (613) 962-1944

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GWN-O

6 POINT PLAN

1. A Moratorium on gambling expansion PENDING:

2. Independent studies on social, economic, and legal impacts of gambling policy

3. Standard public consultation process

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GWN-O

6 POINT PLAN

4. Local veto and regulatory control

5. Public education and disclosure of odds and risks

6. Government regulations and accountability, including limits on gambling promotion

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GWN-O Presentation

Panel Format

Economic and Social Impact ofSlot Machine Gambling at

RacetracksGWN-O / Citizen Perspective:

- “Who Is Holding The Reins? -Where Is Ontario Going?”

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GWN-O PRESENTATION WILL

A. Provide BACKGROUND: CONTEXT- Slots at Tracks

B. Overview Key Ontario Concerns:1) Slot Locations / Racetracks2)Related Gambling Policy Issues

C. Offered CONCLUSIONS & PREDICTIONS- “Where is Ontario Going?”

Introduction

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C a s i n o sS lo t M ach ines

I n f o r m a t i o n U p d a t e

0

5 0 0 0

1 0 0 0 0

1 5 0 0 0

2 0 0 0 0

'95 '96 '97 '98 '99 '00

( N o t e - R a c e t r a c k s l o t n u m b e r s a l t e r e d b e c a u s e o f y e a r 2 0 0 0 t e m p o r a r y h o l d . )

S l o t M a c h i n e E x p a n s i o n

S ign i f i can t Inc reaseIn S lots

1 6 R a c e t r a c k s ( 9 , 2 1 2 )P i l o t "Char i t y " Cas inos (2 ,250 )N e w W i n d s o r ( 3 , 0 0 0 )N iaga ra ( 2 ,670 )R a m a ( 2 , 2 8 0 )No r the rn Be l l e ( 828 )W i n d s o r ( 1 , 8 5 2 )

Futu re cha r i ty cas inos a n d s l o t s t o c o m e .

Slots

January + 0 1

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1. SINCE 1995: approximately 1000% INCREASE IN TOTAL SLOTS in Ontario

2. Government Slot allotments at local Ontario communitytracks increased dramatically:

1996 - 3 to 4,000 allotted in total1998 - “up to 6600” allotted in total

BUT NOW: 2002 - 8672 and climbing- no government “cap” on track slots

NO CITIZEN INPUT ON SLOT INCREASESREQUIRED/INCLUDED

BACKGROUND CONTEXT /SLOTS AT RACETRACKSA.

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3. IMPORTANT: MINISTERIAL ZONING ORDERS/M.Z.O.’s

- 13 M.Z.O.’s issued by Minister of Municipal Affairs andHousing, December 1998; imposed zoning for slot machines.

- no prior announcement of planned M.Z.O.’s given.- unprecedented action; particularly in organized Municipalities- broad citizen lack of awareness of 12 racetrack Mayors’ Agreement/Resolution in support of M.Z.O.’s.

RESULT:- overturned Oct. 98 Ont.Court of Justice Decision, Woodbine

- no local option; no “level playing field “ for public- no prior public consultation on process implications- option for citizens - OMB appeal only; would only

address site-specific issues


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3. M.Z.O’s Cont’d

Quote from “Attachment” to an August 2000 letter to Flamborough citizen, sent by then Minister of Municipal Affairs - which rejected a citizens’ request for revocation of Ministerial Zoning Order at Flamboro Downs:-

“In order to permit slot machines at all of the race-tracks, regardless of the views of the local municipality(emphasis added) it was decided to have the Province zone the properties through the use of MZO’s.”


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3. M.Z.O’s Cont’d

Additional quote from Aug. 2000 Provincial Government letter attachment:

“It was decided that delays in implementing this direction could … result in a shortfall in projected revenues by the province (emphasis added).”“… it was decided to have the province zone properties through the use of M.Z.O.s in order to avoid delays that could otherwise be caused by an OMB appeal (emphasis added).”


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4. ALSO:- In Oct. 98 the Ontario Horse Racing Industry Association / OHRIA passed a 2 Part Unanimous Board Resolution. Quote in part “… Government must be requested to dealwith the zoning issues.”

RESOLUTIONS said in part:“OHRIA believes that the government should proceed as quickly as possible with the issuance of Ministerial Zoning Orders in order to expedite the slot program at racetracks …” and “… unless and until all … track sites receive the appropriate zoning, no racetrack site be allowed to commence slot operations.”

FINAL RESULT:- 13 of the 18 M.Z.O.s requested by OHRIA are issued byMMAH Dec. 98.


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5. FOR YOUR INFORMATION, please NOTE:

GWN-O (then Ontario Coalition Against Gambling EXPANSION -OCAGE) had lobbied directly and separately Nov./98 with:

a) Management Board - Chair. & b) Executive Director - OHRIA

Requesting: - prior public consultation process across Ont.- local option; plebiscite process across Ont.- local regulatory control for any slot, E.G.M., &/or casino community expansion in Ont.

Note:- no notice of planned M.Z.O. process provided at Nov./98 meetings

Source documentation available


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6. RESULT of 13 M.Z.O.s:- “pressure cooker” situation for remaining 5 tracks andtheir communities

PATTERN OF OUTCOMES:- policy appeared to move one segment of a communityagainst another, if / when opposition to slots presented locally

- opposing citizens positioned as if opposing racing

COMMUNITY CONCERN:- divisive for local citizens

EXAMPLES - Elmira, Elora, Ajax, possible in future - Belleville


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7. Note:- No present Racing Industry plan for any continued “Industry pooling” of the 20% slot machine subsides. Every track wanted slot machines.

- GWN-O wrote to “pooling” Agency: Ontario Horse Harness Association / OHHA in Aug 2001.

- GWN-O asked that racing industry sharing be continued. - GWN-O rationale of needs for completed public education and

review of expansion impacts were provided.Source documentation provided


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1. “Win” = gambling industry (Gov’t) / OLGC term for gambler’s loss per visit

1996 - Government input from Coopers & Lybrand“win” = presumed $37 loss per position

Present Public concern: “win” = loss per visit per slot is growing significantly

Average loss = $79 left behind every time by every gamblerat a slot machine (At some locations, averageloss much higher)

Source data available

OVERVIEW: ONTARIO (TRACK) SLOT& GAMBLING POLICY CONCERNSB.

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2. Massive COLLECTIVE LOSSES (“gross gaming revenues”) at Ont. track slots (approx. 8,670 slots)

YTD - this fiscal year - approx. $950 million

TOTAL TRACK/INDUSTRY SHARE - approx. $190 million (20%)

- significant transfer of expendable community dollars to a monopoly-style location (only Prov. Gov’t able to operate slots / E.G.M.s;

competition possible only from other slot locations)


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3. GWN-O Observation:

Slot Machines do not “generate revenues”.

Slot machines siphon huge collective losses, and funnel a significant percentage away from your local citizen base.


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4. WHO GETS WHAT:-

- from every dollar left behind in slot machine:$.75 - to Provincial Gov’t ($.02 Problem Gambling)$.20 - to Racing $.10 - track

$.10 - prizes / “purses”only $.05 - to “host” location(any increased policing costs come from municipality / host’s 5% portion)


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5. FUNDAMENTAL SHIFT:

- local access to very rapid electronic gambling, slot machines

- approx. 3-6 second game cycles- machine type can evolve without legislative debate / public consultation

- video slot machines now placed locally- new game-style format; risk public perception that skill willaffect outcome

- citizens do not understand how slot machines work;misconceptions / “myths” reinforced by current lack of product safety guidelines


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6. Slot Machines bill acceptors take up to $100 bills.ATM’s on site - access to withdrawals only;debit/credit card use options at ATMs.

7. Mayors & Councillors sign a Slot Revenue SharingAgreement with OLGC which, to date:

- included a clause that said, in part, that slot installation was “… in the public good …”


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8. No local termination option, if future problems arise.Appearance of “a forever agreement”.

9. OLGC can make decision to operate track slots- 7 days a week, 24 hours a day, 365 days of a year.- but long-term slot machine impacts are in known

“incubation” stage; problems have not yet peaked.


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10. DIFFICULTY with SLOT MACHINE USEREPRESENTS HIGHEST LEVEL of:-

a) calls to ONT. PROBLEM GAMBLING HELPLINE in everyOntario Healthcare Planning Region

2001 - represented 42.5% of calls2002 - slot difficulties still top the list

b) those presenting for counseling for gambling problems (37.7%)c) very concerning low numbers presenting for counselingNote - b) figures available from Ontario’s DATIS only until April 2000

(ongoing delay - impact data reports)SOURCE: www.opgrc.org


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Ontario Problem Gambling Helpline (OPGH)

1536

705

582

205

166

137

130

75

51

45

27

22

0 200 400 600 800 1000 1200 1400 1600

Slots

Card Games

Not Identified

Racing

Bingo

Sports

Lotteries

Scratch Tickets

Break Open Tickets

Roulette, Dice, etc.

Other**

Internet

Gam

blin

g A

ctiv

ity

Number of Gambling Activities

Gambling Activities* Identified by CallersSeeking Problem Gambling Treatment Services through the OPGH

(April 1, 2001 – March 31, 2002)

*More than one gambling activity may be reported by a caller.** Other activities could include the stock market, investments, bookies, pool games, etc.

Extracted from the Ontario Problem Gambling Helpline (OPGH) Database on April 18, 2002.All rights reserved. No part of this compilation may be reproduced (including photocopied), stored, or transmitted in any form or

by any means without the prior written permission of the Drug and Alcohol Registry of Treatment, sponsoring agency of the OPGH.

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491

149

1

1

0 100 200 300 400 500

Slots

Racing

Lotteries

Scratch Tickets

Gam

blin

g A

ctiv

ity


Raceway Gambling Activities* Identified by Callers Seeking Problem Gambling Treatment Services through the OPGH

(April 1, 2001 to March 31, 2002)

*More than one gambling activity may be reported by a caller.Extracted from the Ontario Problem Gambling Helpline (OPGH) Database on April 18, 2002.

All rights reserved. No part of this compilation may be reproduced (including photocopied), stored, or transmitted in any form orby any means without the prior written permission of the Drug and Alcohol Registry of Treatment, sponsoring agency of the OPGH.

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871

292

141

102

47

39

35

26

13

0 300 600 900

Slots

Not Identified

Bingo

Card Games

Lotteries

Scratch Tickets

Break Open Tickets

Other**

Racing

Gam

blin

g A

ctiv

ity


Gambling Activities* Identified by Female CallersSeeking Problem Gambling Treatment Services through the OPGH

(April 1, 2001 – March 31, 2002)




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665

603

290

192

133

83

37

36

25

19

16

16

0 100 200 300 400 500 600 700

Slots

Card Games

Not Identified

Racing

Sports

Lotteries

Roulette, Dice, etc.

Scratch Tickets

Bingo

Other**

Internet

Break Open Tickets

Gam

blin

g A

ctiv

ity


Gambling Activities* Identified by Male CallersSeeking Problem Gambling Treatment Services through the OPGH

(April 1, 2001 – March 31, 2002)




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11. Ont. Prov. Gov’t. aware that slot operations at tracks and “charity” casinos have a primary market that is “local” (emphasis added). Source - KPMG Report 2000, for Ont. Gov’t.

Quote - “The primary trade area generally includes “local” population (i.e. within a 30 minute drive time …)”(emphasis added)

majority NOT tourist based slot locations;RISK: Long term impacts mainly:- local & regional

NOTE: Coopers & Lybrand Report, 1996: Marketing Survey for then Gaming Commission, Ontario “Factors identified by successful gaming operations as crucial to revenue generation are:- Proximity to gamblers (added emphasis)

- Creation of an attraction people desire to visit”


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12. Provincial Government Funded IMPACT STUDIES (planned also for Racetrack regions where slots to be installed) NEVER INSTITUTEDSource - R.F.P.#98-025; Aug 98: - “Social and Economic Impacts on

Communities Exposed to Increased Gambling Opportunities”

- no Prov Gov’t funding for track slot location Impact Studies/ Monitoring Committees were indicated in Revenue SharingAgreements with OLGC

- Result: baseline data and ongoing impacts not monitored across Ontario racetrack sites / regions

.


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13. YOUTH - RESEARCH & GOVERNMENT recognized youth as group at increased risk - 2 to 4 times current adult problem rates.

See slot/casino gambling as one of “NEW RITES OFPASSAGE” at age 19; growing up in a saturated gambling environment; risk adding disproportionately to future problem gambling populations

- Young adults (18 to 24) have twice the problem rates of Ont.general adult population Source: 2001 CPGI Study

- To date, no required school education about gambling and problem gambling at elementary & secondary levels,

- not part of core curriculum as per alcohol, drugs, tobacco, etc. - Parents, educators, general public still uninformed about

youth gambling issues.


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14. ONGOING DELAY - promised PROVINCE-WIDEmultifaceted PROBLEM GAMBLING and GAMBLINGPUBLIC AWARENESS CAMPAIGNS - PACS-

- ready to go Sept., 2000- still not released by Ministry of Health- was to be multi-media, multi-faceted

needed ongoing; Source - Wynne Resources Consultant Report to OSAB; 1999

- to target general public over 18 and adolescents - then target at-risk groups: women, youth, seniors, those with concurrent disorders, etc.


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15. REALITY:- “Duty-of-care” legal implications re:-promotion, for profit, of potentially hazardous &/or addictive product

- to date: gambling advertising of slots has minimal to no:- education, odds / risk information- warnings, possible contraindications- self-screening tools

- self-exclusion options not widely publicized- policy makers cannot distance themselves fromconsequences / implications of promoting this potentially hazardous product gambling


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16. SLOT MACHINE gamblers encouraged to join “WINNERSCIRCLE” Slot Card Club; card interchangeable atall track slot & “charity” casinos locations.

RESULTGrowing OLGC detailed player profile DATABASE on SLOT PLAYERS -record gender, age, location, frequency, money spent, time spent etc.- members can receive promotional material from OLGC.NOTE:a) Eastern Ontario Citizen’s Group requested public release of generic data from this

databaseb) Purpose - public knowledge of slot usage patterns

- access by Addiction Services; high frequency known indicator of risk Counselors could better focus public education to general groups seen as higher risk slot players

c) Outcome F.O.I. Process continuing; OLGC refused public access to data, to date


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17. General Population and Key Community Organizations:- not required to accept &/or request gambling awareness /

education presentations from local Addiction Services.- public not broadly aware presentations available to them.

RESULT:- continued collective lack of public awareness /

misconceptions about - gambling issues- problem gambling issues.

OUTCOME:- growing gap between public awareness and gambling expansion

- continued public at risk


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18. Current Absence of Legislative Requirement FORFEDERAL and PROVINCIAL GOVERNMENTS to Address GAMBLING and GAMBLING POLICY AS EMERGED PUBLIC HEALTH ISSUES.

RESULT: a) General public unaware gambling policies arepublic health issues.

b) Communities make long-term expansiondecisions in absence of fully balanced information (uniformed consent risk).

c) Gambling prevention / education not nationally required part of Core Mandatory Programs of Public Health.


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18. Cont’d

However, The CANADIAN PUBLIC HEALTH ASSOCIATION / CHPA:In Autumn 2000 - endorsed unanimously a) a Position Paper on Gambling Expansion by Dr.D. Korn U of T & b) The Recommended Positions for CPHA.

Position 1.) said in part: “CPHA Should: Endorse the position that expansion of gambling in Canada has significant health and public policy impacts …”

CPHA Health Digest Autumn 2000

Note GWN-O’s 2 Page ‘REFERENCES OFFERED’ LISTS Ontario & Canada Gambling public health documents & source contracts. See www.gamblingwatch.ca


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19. The Nov. 2001 STUDY:“MEASURING GAMBLING & PROBLEM GAMBLING IN ONTARIO” raise crucial problem gambling prevalence level concerns. Source: www.gamblingresearch.org

EXECUTIVE SUMMARY:“ … approximately 340,000 Ontarians 18 years of age or older report problems of significant magnitude to rank as having moderate or severe gambling problems …” Another 9.7% are “at-risk”.CONCLUSION and DISCUSSION:“young adults are almost twice as likely as others to develop a moderate or severe gambling problem.”REALITY:Numbers in difficulty are substantial, and have reached an all time high.


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OF PUBLIC INTEREST

1. In September 1998:

An Ontario Court of Justice Decision rejected slot installation at Woodbine Racetrack

Quotes:-

“A slot machine is not ancillary to a horse; nor is it ancillaryto the track on which a horse races. The application is dismissed for the following reasons: …”

Justice J. FerrierFile No 98-cv-152943Ont. Jockey Club v. City of Toronto et al.

CONCLUSION:SLOTS AT ONTARIO RACETRACKSC.

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1. Cont’d Quotes from Ontario Court of Justice Decision, 1998

“The obligation imposed on the municipal council to plan for the growth & development of the community demands recognition … to compel the observance of the rights of the community to determine & enforce the direction in which the community should be shaped. … in this regard, the rights of the community are paramount to the rights of the owner. Re Bruce, supra.”

Dec 1998 - Min. Municipal Affairs & Housing (no prior public announcement) issues Provincial Zoning Orders imposing slot zoning on Woodbine & 12 other tracks.

CONCLUSION:SLOTS AT ONTARIO RACETRACKSC.

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PREDICTIONS OFFERED- OSUM CONFERENCE 2002C.

1. General public accountability expectations related to gambling policies will escalate nationally.

“Gambling neutrality” will be addressed.

2. Impetus for change predictably will come from the “bottom-up” those families, parents, youthwho will increasingly be affected by problem gambling.

- “SECOND-HAND GAMBLING” -

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C.

3. More citizens will address the current lack of apparentpolitical will - nationally - to stop expansion of gamblingin Canada. Federal action will be needed to initiatechange.

4. Today’s Canadian youth and young adults will continue tobe at risk of adding disproportionately to problem gambling populations. Parental concern will increase.

5. Legal implications of promotion, for profit, of a potentiallyhazardous and/or addictive product will be addressed.

PREDICTIONS OFFERED- OSUM CONFERENCE 2002

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C.

6. Legal implications will not only affect government policy makers, but also those licensed and partnered with them.

7. It may well require Public Inquiries and/or litigation to effect legislated change in policies.

8. The public’s growing awareness will reduce the stigma forproblem gamblers’ families, and then for gamblers. People will view themselves not as “victims”, but as preventable uninformed consumers. This will impel themto action.


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C.

9. Media awareness will grow.

10. Advertising Standards for gambling will becomemandatory, nationally.

11. It will probably get worse, before it gets better. This waspreventable. It was never “inevitable”. But - Everyday,millions still lose.

- The End -


spokesperson, gwn-o - nancy langille · 02/05/02 - gwn-o 2 gwn-o contacts new website central...

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