Gamblor’s World

FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
CHES CROSBIE, 579-4000
Email: ccb@chescrosbie.nf.net
www.ChesCrosbie.com
ATLANTIC LOTTO IMMUNE FROM CONSUMER PROTECTION LAWS
On December 12, 2008 Justice Dymond of the Supreme Court of Newfoundland and Labrador, Trial Division, released his decision on an application by Atlantic Lotto Corporation that the Trade Practices Act of Newfoundland and Labrador does not apply to a Crown agent (http://www.chescrosbie.com/library/Dymond_decision.pdf). The Court agreed, and decided that the Trade Practices Act does not apply to ALC as a Crown agent.
“Consumer protection laws that apply to everyone else, don’t apply to ALC”, stated Ches Crosbie, class counsel for VLT players who have banded together in a class action. “ALC has again benefited from rules that give the house an unfair advantage.”
Mr. Crosbie said the decision is not unexpected, and leaves the door open for the plaintiff to seek to include causes of action other than breach of consumer legislation. Mr. Crosbie pointed to the daughter of representative plaintiff Keith Piercey, who committed suicide, as an example of the harm caused. The Statement of Claim alleges that Susan Piercey lost her life due to the deceptions designed into VLT games, which led to addiction and suicide.
The Charter of Rights section 7 guarantees the right to life, liberty and security of the person. “VLTs are unlike any other form of gaming in their concealment of the rules of the
game, their manipulation of the player and in their potential for addiction”, said Mr. Crosbie. “For an agent of the government to expose players to breach of their Charter rights is a constitutional tort.”
Mr. Crosbie added that the law of Charter breach “is one area where ALC can’t rig the game.”
Mr. Crosbie stated that the claim will be amended to also allege breaches of the Criminal Code of Canada, the Competition Act, and the Statute of Anne, an early 16th century anti-gambling statute which is still on the books.
CHES CROSBIE BARRISTERS
169 Water Street, 4th Floor
St. John’s, NL A1C 1B1
Telephone: 579-4000 or 888-579-3262
Facsimile: 579-9671
Email: ccb@chescrosbie.nf.net
QUESTIONS AND ANSWERS
Q. What is the case against ALC on VLTs?
A. Dr. Kevin Harrigan described how VLT line games work to cheat the player in his Affidavit available in the Class Actions section of www.chescrosbie.com. His summaries are contained at paragraphs 36 and 63. At paragraph 36 he deposes:
VLT line games are displayed on the VLT screen. The first level of deception is that the VLT screen conceals how the line games actually work. Line games are controlled by the computer inside the VLT which uses a random number generator and various tables and algorithms to determine the result. What the player sees on the VLT screen is not the game itself. How the randomness is generated and the probabilities of each winning combination are concealed from the player. The second level of decision is that the games are intentionally designed so that the 3x5 matrix on the VLT screen misrepresents the game to the player. Observing these intentional misrepresentations will lead the player to create incorrect perceptions of how the games work including incorrect perceptions of the nature of the randomness and true probabilities of the game.
Q. What remedy does the class action lawsuit seek?
A. The lawsuit seeks a monetary remedy and an injunction. The aim is to force ALC to eliminate the deceptive features of the games.

This class action was brought in 2007 against Atlantic Lottery Corporation Inc., a private business corporation in which the Province of Newfoundland and Labrador has a 25% shareholding.

Video lottery terminals or VLTs are a form of continuous electronic gambling which differs from lotteries in that they are electronically programmed to create cognitive distortions of the perception of winning. These cognitive distortions are intended to keep the consumer engaged and losing money. The class action claims that VLTs are inherently deceptive, inherently addictive, and inherently dangerous when used as intended.

The class action has been brought by the Piercey family on behalf of all residents of Newfoundland and Labrador who have gambled on VLTs. The Plaintiffs say that Atlantic Lotto knows or ought to know that VLTs are inherently deceptive, inherently addictive, and inherently dangerous when used as intended, but has embarked on a “responsible gaming strategy” with messages to consumers which place the onus of responsibility for control and the resulting harm from loss of control on consumers. The purpose of this message strategy is to blame consumers for problem gambling and divert attention from the fact that problem gambling is a natural result of design features of the VLT.

The Plaintiffs say that VLTs do not comply with consumer protection law, specifically the Trade Practices Act of Newfoundland and Labrador. The class action seeks relief in the nature of an aggregate monetary award and such other relief that the court considers appropriate. A copy of the Statement of Claim may be viewed by clicking below.

The Plaintiffs are arranging a date to meet with the case management judge to set a date for the class certification hearing.

for more information go to: http://www.chescrosbie.com/vlt.html

Province proceeds with strategy on problem gambling

Last Updated: Wednesday, December 6, 2006 | 10:15 AM NT

CBC News

A change to video lottery terminals in Newfoundland and Labrador has led to a small drop in the number of players.

Atlantic Lottery Corp., acting on a provincial government campaign to curb problem gambling, has removed the “stop” button on VLT machines so players can’t stop a machine from spinning.

Stop buttons are being removed from video lottery terminals in Newfoundland and Labrador.

(CBC)

Now, they must wait for each spin to run its course.

Renee Ryan, the addictions consultant for the province, says removing the button has slowed down the speed of play.

“If people are playing the machines slower, obviously they’re going to be going through somewhat less money,” Ryan told CBC News.

“It will have some impact on how long they’re gambling and the amount of money that they’re gambling.”

Atlantic Lotto says that since staff started removing stop buttons in April, the number of people using VLTs in Newfoundland and Labrador has dropped by about 1.5 per cent.

The corporation, which is owned by the four Atlantic Canadian governments, expects VLT revenues in this province to drop by about $6 million over the course of this fiscal year.

Addictions consultant Renee Ryan said removing stop buttons on VLTs should curb problem gambling.

(CBC)

In 2005, the Newfoundland and Labrador government outlined a plan to curb problem gambling. It intends to remove about 15 per cent of VLTs over a five-year period.

About 90 machines have already been removed, leaving about 2,500 VLTs in bars and lounges across the province.

Eric Lawlor, a St. John’s resident who plays VLTs occasionally, said the removal of the stop buttons has not gone over well at some bars.

“A lot of people that I’ve spoken to are actually disappointed with the change. They thought they had control of the the game by stopping it, but actually they have no control whatsover,” Lawlor said.

No change in outcomes: Atlantic Lotto

Paula Dyke of Atlantic Lotto said removing the stop button has made no difference to the outcome of a VLT spin.

“The random play generator in that machine at that point has to determine the outcome of that spin, so hitting the stop button — to stop the play before the natural end of the spin — never ever had any impact on the outcome of the game,” said Dyke, director of public affairs and corporate communications.

Lawlor doesn’t personally have a problem with the change. In fact, he would prefer a stronger response.

“Get rid of them! In my opinion, the best thing is to move them out onto George Street,” he said, referring to the popular string of bars and clubs in downtown St. John’s.

A November 2005 for the Newfoundland and Labrador government found that VLT users were at significantly greater risk of developing addictions than other gamblers.

Copyright © CBC 2006

Last Updated: Friday, February 3, 2006 | 6:47 AM NT

CBC News

Newfoundland and Labrador Health Minister John Ottenheimer admits that people with addictions are waiting too long to get the help they need.

However, Ottenheimer is also defending government efforts to help people who have become addicted to gambling.

In some parts of the province, people with addictions - including those who have become hooked on video lottery terminals - have to wait six months to see a counsellor.

FROM FEB. 2, 2006: VLT addicts wait too long for help: advocate

Ottenheimer says waits of that duration are unacceptable.

At the same time, he said, the provincial government is taking action.

Randy Collins

“We recently announced our addictions campaign, our public awareness campaign. We have included an addictions consultant for the Department of Health and Community Services, and we recently hired five new addictions counsellors,” he said.

Labrador West MHA Randy Collins, who has campaigned to ban VLTs in the province, does not think those efforts respond to people’s needs.

“More money is, of course, the answer,” Collins said.

“More money means that you have more therapists, it means that you have more locations, and it means there would be a variety of services offered.”

Ottenheimer added that other government decisions should help curb gambling.

For instance, the provincial government has capped the number of VLTs in the province, and is limiting to five the number of machines an establishment can lease.

Last year, the provincial government announced more than $700,000 in additional funding for gambling services.

Ottenheimer will not say if that will continue. He said government plans will be revealed in the next budget, which is expected in less than two months.

VLTs are estimated to generate about $70 million per year for the provincial treasury.

Copyright © CBC 2006