Gambling on Addiction: How Governments Rely on Problem Gamblers

Introduction

When it comes to gambling, Canadians are heavily invested. Last year alone, they spent roughly $13 billion on legal, government-operated gambling—more than what they collectively shelled out for movies, hockey games, and Tim Hortons combined. It’s no secret that provincial governments depend on gambling revenue. But what often gets overlooked is just how much of that money comes from problem gamblers. Experts estimate that up to 50% of gambling profits are fueled by those struggling with addiction. Although they publicly promote “responsible gambling,” this investigation by The Fifth Estate exposes how these programs are falling short—allowing addicted problem gamblers to keep coming back, while the government cashes in on their losses.

Quotes

“OLG says 88% of casino gaming revenue comes from slot machines. To put their popularity in perspective, there are some 100,000 legal electronic gaming machines (EGMs) in Canada. That’s compared to 65,000 ATMs. Author and academic Natasha Schull says these machines have a corrosive effect on all gamblers, not just addicts, designed with sophisticated algorithms to separate you from your money.”

VIEW ALSO: The Dangerous Allure of Slot Machines: Addiction by Design

“Success is measured not only by revenue, but by the time gamblers spend on these machines. It’s known as TOD, or time on device, where gamblers are lulled into a trancelike escape from life, and loss.”

“Even the illusion of winning gives players a blast of dopamine, like a chemical jackpot for the brain.”

“Unlike card games or horse races, bets on a slot machine come fast and furiously. According to Harrigan (Gambling Research Lab at the University of Waterloo), the industry average is about 1,000 spins an hour. Studies suggest the rapidfire gambling increases the onset of addiction.”

VIEW ALSO: The Psychology and Neuroscience of Gambling Disorder

“It’s a program called Self-Exclusion, common at casinos across Canada. Ontario’s casinos now have facial recognition software. Once they’re isolated and identified via the cameras at fixed entrances for example, the alerts are sent to the operator at which time the operator can make an informed decision on the self-excluded individual as to next steps.”

“It began in 1975 with a single lottery called Wintario, with spinning balls and televised draws. The lottery made a meagre $43 million profit in its first year of operation, but that was then. This is now. Today, the gleaming OLG is the biggest provincial gaming corporation in Canada, with more than 18,000 employees, generating $7.5 billion in gross revenues for a deficit ridden government.”

“Depending on the jurisdiction and the time period between 15 to 50% of gambling revenue comes from problem gamblers … addicts pump billions a year into government run casinos across Canada. If your revenue base is hinged on drawing a good portion of your money from an addictive population, that’s a problematic business enterprise.”

“There’s one policy the OLG enforces rigorously: if you are self-excluded and you win big, you’re out of luck. So gamblers on the banned list are free to lose hundreds of thousands of dollars in the casino, but the minute they win a jackpot of more than $10,000, casino reps won’t pay them out, they’ll kick them out of the casinos.”