Video lottery terminals are at the centre of the gaming debate throughout New Brunswick.
Telegraph-Journal , CINDY WILSON/TELEGRAPH-JOURNAL
Monday April 23rd, 2007
In the court of public opinion, gaming remains a highly controversial topic in Greater Saint John.
Based on the results of City Think 2007, an Omnifacts Bristol survey commissioned by the Telegraph-Journal, 48 per cent of residents of Saint John, Rothesay, Quispamsis, St. Martins and Grand Bay-Westfield oppose the establishment of a gaming destination. That compares to 39 per cent of those surveyed who support the concept. An unexpected feature of the poll is that nine per cent placed themselves in the middle - they neither support the idea or oppose it.
“That’s a bit unusual, we normally don’t have such a large number of people in the middle because we don’t give them the option,” said Maryse Courville, a senior research consultant with Bristol. “They have to actually express it that way.”
More detailed questioning revealed a number of reasons for either opposing or supporting the idea. Twenty-three per cent of those who oppose or strongly oppose the idea said they don’t believe in gambling for religious or personal reasons. Another 17 per cent said they are against it because it increases addictions and 16 per cent mentioned negative social impacts. Thirteen per cent said gaming increases poverty or creates monetary hardship.
When the same question was put to those who support making the city a gaming destination, 37 per cent felt it would bring revenue to the city or help the economy grow. The next most popular reason, at 14 per cent, is a belief that it will increase tourism, while 12 percent said it will provide entertainment, social activity or enjoyment.
Over the past few years, harness racing enthusiasts have pushed the idea of developing a racino in Saint John which would provide opportunities to bet on live races as well as through video links to other race tracks. They also want video lottery terminals on site to help fund the horse racing industry.
As well, New Brunswick’s First Nations recently announced they are looking at gambling as a possible solution to their economic woes. Chief Susan Levi-Peters of the Elsipogtog First Nation in Kent County has floated a plan that includes building a casino in Saint John and a racino near Moncton. Elsipogtog has applied to the recently formed New Brunswick First Nations Gaming Commission for a licence. Once Levi-Peters has it, she plans to present it to the provincial government.
First Nations have the authority to organize gaming on their own lands, but it is unclear what would happen if they attempt to open a facility on non-reserve property.
That may be answered soon, when the provincial government issues its own policy on the future of gaming. After unveiling the budget in March, Finance Minister Victor Boudreau said his next priority is a gaming policy for the province, a statement reinforced by Premier Shawn Graham.
“We recognize that the status quo is not an option,” Graham told a recent editorial board meeting with the newspaper. “We recognize that there has to be a social responsibility of government, as well, in putting in programs for addiction services as we modernize our gaming strategy.”
The new strategy will give a big role to the private sector and will also involve the province’s First Nations, he said. Graham gave a strong hint that a racino is in the province’s future when he said his government wants to bring New Brunswick’s gaming strategy in line with other provinces. Prince Edward Island already has a racino.
Don Bishop of Darlings Island has campaigned against VLTs since the suicide of his son Eric in 1998 as the result of a gambling addiction. He won’t rest until electronic gambling is banned. He is also opposed to destination gambling sites, such as racinos, because they rely on VLTs and slot machines.
There are an unknown number of suicides every year by people addicted to electronic gambling. Any death is one too many, he said. Simply reducing access to VLTs is not enough, because it still leaves people vulnerable to suicide.
With an adult population of 500,000, New Brunswick can conservatively expect to have about 6,400 problem gamblers, said Bishop. According to the Canadian Public Health Association, the social cost per problem gambler per year is between $13,200 and $20,000. Using the midpoint of $15,000, the cost to the New Brunswick economy is $96 million.
During the fiscal year that ended March 31, 2006 VLTs around the province generated a net revenue of $135 million for the province and its partner, licensed bars. The province kept 79.25 per cent of that revenue - $107 million last year - as profit and to cover operating expenses, while the bar owners retained 20.75 per cent, which was a little more than $28 million.
It’s not the big income generator that supporters claim, said Bishop. In 2004, VLT revenue for the province was only $83.5 million which meant there was an actual loss to the economy of $12 million when costs are calculated at $96 million.
Ross Galbraith, chair of the N.B. Horse Racing Industry Association, said racing was the only legal form of gambling until government policy allowed VLTs all around the province. Bringing horse racing and electronic gambling together in a racino will help the horse industry survive.
Horses require a lot more care than other farm animals so a revived racing industry would bring jobs back to rural New Brunswick, he said.
“Racing was the only legal form of gaming in Canada and then government became our competitor and harmed a lot of folks,” he said.
Galbraith wants to level the playing field by allowing electronic gaming at race tracks with a percentage of the profit going to support all aspects of the horse industry from breeding to racing.
© 2007 CanadaEast Interactive, Brunswick News Inc.
