If we’re willing to accept that gambling is a staple of provincial government revenues — and we don’t have much choice now — then how do we ensure that the industry is conducted with a sense of social responsibility?
And how do we balance the need to run a successful business against the social cost of that business?
Gambling, at its worst, is an addiction. It can lead to financial ruin, family strife and even suicide. It has a devastating ripple effect.
The Alberta Gaming Research Institute reckons that two to three per cent of the total provincial population has a gambling addiction, and that 25 per cent of all Albertans regularly gamble.
The family and friends of those addicts also suffer, so the multiplier could mean that as many as 10 per cent of Albertans are affected when a gambler becomes consumed by his or her habit.
At its best, gambling is an entertainment vehicle that serves as a diversion or release for thousands of Albertans (although about 75 per cent of all gambling in the province is done at VLTs and slot machines, which are hardly built to encourage social interaction with those around you).
It also employs or helps support thousands of Albertans, in casinos, bars and within government.
Albertans spend roughly $23 billion a year gambling (principally on lottery tickets and VLTs), and as much as $1.5 billion of that goes directly into provincial government general revenues.
Income tax amounted to about $12 billion of total Alberta government revenue in the last fiscal year, and income from non-renewable resources amounted to about $6.8 billion. As part of total government revenue of just over $39 billion, gambling is a small portion.
But beyond the direct effects on problem gamblers, what impact does gambling have on the budgets of such areas as health care (which has a total budget of $14 billion), education (about $11 billion) and social services (about $4 billion)? All three departments must in some fashion offer care or guidance to gamblers young and old.
In the face of this troubling social concern comes word that the Alberta Liquor and Gaming Commission is seeking proposals to make VLTs more profitable and attractive. Starting in 2012-13, the government agency intends to replace 6,000 VLTs across the province with new technology that is more likely to draw in and hold gamblers.
Naturally enough, the agency is looking for ways to boost business. In the midst of a recession, Albertans have backed away from gambling; gambling revenue has fallen for two consecutive years.
The gambling industry wants those players back, and the province will get an influx of revenue in the process.
The ethical dilemmas are fundamental:
l Which do we put first, the welfare of the people or the welfare of the state and business (through revenue)?
l Should government actions or government-sanctioned businesses be allowed to contribute to social decay?
l Should we allow free enterprise operations (casinos and bars) to profit off the weakness of a segment of society, even leading to devastating consequences? If so, should we tax the industry more heavily to help pay the social costs of gambling?
It’s time for the province to take a step back from gambling and examine its cost and its payoff.
It just may be that betting on gambling as a growth industry is not a prudent wager.
John Stewart is the Advocate’s managing editor.