Problem gamblers contribute $1.6 billion to Ontario's treasury

Community Action, Nov 22, 2004

LETGBRIDGE -- About 35 per cent of Ontario gaming revenues come from moderate and severe problem gamblers with even more revenue coming from gaming machines and horse racing says a study from the University of Lethbridge. The study was funded by the Ontario Problem Gambling Research Centre, whose budget comes from the Ontario government.

The researchers point out that although Ontario does more than other jurisdictions to minimize the negative impact of gambling, much more needs to be done, particularly since much of the gambling in Ontario is government sponsored and continues to expand.

Ontario Premier Dalton McGuinty recognizes the problem but because of the provincial collects over $4 billion from gambling, he was not willing to commit the government to restrictions on gaming or any increase in funding of services for problem gamblers.

The study's authors, professors R. Williams and R. Wood, note in 2003 about 4.8 per cent of Ontario adults were moderate or severe problem gamblers, which supports "converging lines of evidence indicating that a substantial portion of gaming revenues derives from people who are negatively impacted by their involvement in this activity."

Even though government-sponsored gambling appears to be contrary to the interests of the general populace and contrary to the purpose of government, they note that the financial benefits of "gaming in Ontario may offset the social and economic costs" of problem gamblers.

They also argue that the amount of money spent on treatment of problem gamblers by provincial governments "should be proportionate to the amount that comes from people with gambling addictions," even though to date it has been difficult to determine exactly how much of gambling revenue derives from problem gamblers.

However, their study, The Demographics of Ontario Gaming Revenue, used different methods than previous studies in order to produce more reliable data about the amount spent by problem gamblers on gambling and to determine the number of Ontario adults who are problem gamblers. These included four-week diaries of gambling expenditures maintained by gamblers themselves, better worded questions to elicit more reliable responses about monies spent on gambling and the exclusion of out-of-province expenditures as well as revenue from non-Ontario residents.