Gamblor’s World

14/11/07, The Cape Breton Post

HALIFAX — Officials from the Atlantic Lottery Corp. have fielded a series of tough questions from a Nova Scotia legislative committee about measures taken to ensure the integrity of its games.

Corporation officials were explain to the public accounts committee why retailers won big prizes at rates up to 19 times more than should have been expected.

Corporation CEO Michelle Carinci says while she can’t explain the statistics, steps have been taken to protect customers and that complaints are followed up on.

Carinci also admitted that the procurement process wasn’t transparent enough in the awarding of a recent Internet gaming contract to Swedish company Boss Media.

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at http://www.capebretonpost.com/index.cfm?sid=80263&sc=145

Report finds retailer-wins high, security low, By DAVID JACKSON Halifax Herald Provincial Reporter, Tuesday June 5, 2007

The Atlantic Lottery Corp.’s president seems to be on solid ground for now, though her counterpart in British Columbia is gone after a scathing report on a lack of lottery security.

Stirling (Ginger) Breedon, chairman of Atlantic Lotto’s board of directors, said Monday the board hasn’t discussed whether president and CEO Michelle Carinci should keep her job in light of the higher-than-probable rate of retailer wins and lax security dating back to 2001, as found in recent reviews.

“We believe we need to fix the things that need to be done, both technically and in terms of policies and processes, and we’re working with the team we have in place to do that, so that’s where we’re at,” said Mr. Breedon.

“She’s doing exactly what the board wants her to do in terms of moving forward on all the recommendations and putting into place the things that will ensure our players have their just prizes when they win. That’s our interest.”

The British Columbia Lottery Corp. fired its president and CEO last Friday, just days after the province’s ombudsman released a report showing retailers were winning too often and that corporation officials weren’t doing enough to find out why.

….

The Atlantic Lotto board had commissioned an audit of the corporation after an internal review released in March found that retailers won prizes of at least $25,000 at a rate 10 times higher than probabilities said they should have.

The audit by KPMG Forensic showed even more retailers won big prizes. It also found eight retailers had their selling privileges revoked but some were later reinstated.

The corporation has given files on retailers’ wins to police. In all, 85 retailers and their employees won a total of $14 million.

….

Two more reviews of Atlantic Lotto are coming, one initiated by the Nova Scotia Department of Environment and Labour and another by agencies that are shareholders in the corporation on behalf of the four Atlantic provinces. Atlantic ombudsmen also plan to monitor steps the corporation takes to fix the problems.

Lottery corporations across the country have undergone internal and external reviews since CBC TV’s The Fifth Estate aired a story last fall about an elderly Ontario man cheated out of his winning lottery ticket, and high rates of retailer wins in that province.

Ontario’s ombudsman released a report in March that concluded the province’s lottery corporation was “fixated on profit rather than public service.” The president and CEO of Ontario Lottery and Gaming resigned just prior to the report’s release.

( djackson@herald.ca)

© 2007 The Halifax Herald Limited

Last Updated: Wednesday, May 23, 2007 | 12:58 PM ET

CBC News

The launch of Sunday shopping on P.E.I. last weekend opened Charlottetown’s racino for gambling, but bar owners are annoyed they still can’t run their VLTs on Sundays.

‘It’s just another way taking more revenue from the bars.’

— Paul Costain, Crazy Neighbour Bar & Grill The racino at the Charlottetown Driving Park announced last Saturday it would be open Sundays until Christmas. Patrons could play on one of the 210 slot machines or play Texas hold ‘em from noon to midnight on Sundays.

The ads came as a surprise to some bar owners who have VLTs, because their machines still have to shut down on Saturday night and remain off until Monday.

continued ….

Don’t make same mistake as PEI

Telegraph-Journal, May 17. 2007

I have just read the comments by Ross Galbraith about problem gambling measures and self-exclusion practices at the Charlottetown racino. Contrary to Mr. Galbraith’s remarks, these measures are a complete sham, and are specifically designed to fail.

Counsellors in Charlottetown have been instructed not to intervene in situations where people are obviously spending far too much money. They will only do so if that person approaches them first. Good luck with that!

As for self-exclusion, I just updated the P.E.I. chapter in my book on VLTs in Atlantic Canada to include an incident involving an intellectually challenged individual.

This person had lost thousands of dollars, most of it stolen from his place of work, while playing the 200 VLTs at the racino. When his legal guardian found out about this, he called the racino to have him banned from the premises.

But they refused to do so, saying that the individual in question would have to come in and ask to be banned. Eventually, after the story hit the front pages of newspapers on P.E.I, the racino people relented. Did they not know full well that this person should not be sitting for long hours in front of those machines? But no such intervention by counsellors ever took place.

So not only are responsible gaming strategies a cruel hoax, the racino itself in Charlottetown is costing taxpayers more than $5 million annually (in losses and purse pools subsidy). Why would the people of New Brunswick want to make the same mistake as Islanders?

PETER MCKENNA

Associate Professor, Department of Political Studies University of Prince Edward Island, Charlottetown.

NDP promoting total ban on VLTs for PEI
Constable would pull machines out of CDPEC

WAYNE THIBODEAU, The Guardian, 10/05/07

Island New Democrat Leader Dean Constable envisions an Island without video lottery terminals.

Standing in front of historic Province House, Constable said an NDP government would ban VLTs from across the province, including at the Charlottetown Driving Park Entertainment Centre.

But Constable’s plan was short on details. He didn’t know how much a ban on VLTs would cost P.E.I. taxpayers or what impact it would have on businesses, like bar owners that rely on the revenues generated by VLTs.

“They are the most highly addictive form of gambling and they are pulling apart families and communities across the province,” Constable said.

“Simply eliminating them from the province is the best way to deal with this problem, I’ve been told on all fronts.”

Atlantic Lottery Corporation’s annual report says the P.E.I. government pocketed $19.4 million from video lottery terminals. Another $4 million in income came from the Charlottetown Driving Park Entertainment Centre, however much of that was offset by losses at the centre.

In its first year of operations, the casino-styled hall lost $2.4 million.

Constable wouldn’t go as far as to say he would close the CDPEC. But he did say he would pull the VLTs out of the building within four years, which makes up more the majority of the gambling product. He also said he would cut off further funding for the centre.

“There’s no reason the people should be subsidizing a company like the Atlantic Lottery Corporation.”

Robert Bourgeois, an ALC spokesman, said he did not want to get in the middle of the debate during a provincial election. But he did say: “This would be a policy change.”

As for the harness racing industry, which is supported by the CDPEC, Constable said he’d consider direct support for the industry.

“Right now, that money is being paid out of government coffers because the racino is losing money. I have the greatest respect and support for harness racing in the province, I’d like to see it continue, but propping it up by video lottery terminals is not the way to do it.”

The Guardian, A division of Transcontinental Media Inc.165 Prince St. - P.O. Box 760 - Charlottetown - Prince Edward Island - C1A 7L8

PETER MCKENNA, ASSOCIATE PROFESSOR, DEPARTMENT OF POLITICAL STUDIES, UPEI,
Editor:

Re “The glory days of racing without the racino “(The Guardian, March 17, 2007): Permit me to commend former agriculture minister Eric Hammill for his thoughtful commentary on VLTs and the Charlottetown racino.

He is right on the money when he talks about VLT addiction, the attendant social fallout and the government’s addiction to VLT revenues.

I would also like to include some additional information for Islanders to consider. First, VLT expenditures/wagers on P.E.I. are most assuredly not down and show absolutely no signs of deceasing anytime soon. In fact, these numbers have increased from $18.8 million in 2004 to $19.7 million in 2005. In 2006, those same wagers, including the additional racino portion, jumped to $23.4 million.

The only reason why VLT revenues to provincial coffers are down is because of the losses incurred by the racino, which were subtracted from the province’s overall VLT take. In addition, the harness racing sector was subsidized to the tune of some $2.4 million to cover increased purse pools. How long is this subsidy going to remain in place?

Mr. Hammill talks about the racino being conceived as a means of rescuing the harness racing people. I’ve found absolutely no evidence to suggest that harness racing community is getting one red cent from the racino’s VLT take.

Mr. Hammill argues that “the racino is not the right vehicle to finance the industry.” To be honest, it was always about the money; that is, increased VLT revenues through the creation of more VLT addicts.

As for Mr. Hammill’s point about the harness racing sector surviving sans the racino, I’d hardly think so. I can just imagine the reaction from the horsemen if the Binns government were to terminate the $2.4-million purse pool subsidy. Believe me, it would be game over for the harness racing sector.

But I couldn’t agree more with Mr. Hammill’s linking of province-sponsored gambling with the sale of cocaine. Really, what’s the difference?

I just wish members of the current Binns government would take heed of what their former cabinet colleague and caucus mate has to say. But I doubt they’re even listening.

Monday, December 11, 2006

CDPEC to lose 15-20 machines as poker comes in

By Ron Ryder, The Guardian

The addition of poker tables to the Charlottetown Driving Park Entertainment Centre could mean a reduction in Prince Edward Island’s overall number of video lottery terminals.

Provincial Treasurer Mitch Murphy said government is going to need to make some space in the CDPEC gaming hall and would have to move between 15 and 20 VLTs out of the building.

He said those machines would be retired, following the policy of mothballing unused VLTs that was introduced when large-scale gambling was brought to the Charlottetown race track.

“Any machines that come out of the racino as a result of creating space for the tables to go in, those machines will be retired,” Murphy said.

He said the policy of retiring unused machines has already led to 33 gaming machines being taken out of service since the CDPEC opened.

Murphy is defending the province’s decision to allow Texas Hold ‘Em poker to be played at the CDPEC.

He said the game has been widely played at unregulated games around the province and the CDPEC’s majority owner, the Atlantic Lottery Corporation, is responding to market demand by adding the game to its offerings.

The treasurer said ALC first requested permission to bring Texas Hold ‘Em to the track last spring and that government requested the gaming corporation do some more homework before granting its approval.

Murphy said ALC has done a business plan for the poker operation at the facility.

“That can be made available at the appropriate time,” he said.

Liberal Leader Robert Ghiz said government seems to be on a course of operating a full-out casino where it once promised it was adding a few gaming machines in order to improve the finances of the harness racing operations.

“I remember originally they said they were just looking at VLTs,” he said.

“VLTs became slots and it’s cards now.”

Murphy said he doesn’t see the menu getting any broader. He said there has been no request and no discussion about adding games like blackjack or craps to the CDPEC.

“They conducted some surveys and did some focus groups to determine that the interest was there for — in this case — Texas Hold ‘Em,” he said.

© The Guardian comments@theguardian.pe.ca

 

By Wayne Thibodeau, The Guardian, Saturday, November 25, 2006

Card games like black jack and Texas hold ‘em poker could soon be part of the Charlottetown Driving Park Entertainment Centre, moving the so-called racino one step closer to a full-fledged casino.

Provincial Treasurer Mitch Murphy, who is responsible for gaming in the province, said he expects a decision will be made within weeks.

“We have nothing definitive at this stage, but I will say this, if you get out around the province there’s no secret lots of people are playing poker and table games in various establishments across the province,” Murphy told reporters.

“I really don’t see it as a big issue.”

But Murphy said he wants to see the business case before asking cabinet to give it final approval.

“I want to know the investment that’s needed and the return on that investment.”

The Atlantic Lottery Corporation, which operates the money-losing racino, has asked the province to approve card games.

It’s the latest in a string of new products being offered at the racino, which originally was supposed to only have 225 flashy video lottery terminals.

In the spring, the province agreed to allow slot machines.

Now, it appears the province is only weeks away from introducing card games, making it a full-fledged casino, not unlike what is now established in Halifax and Sydney, N.S.

Liberal MLA Richard Brown said he’s against plans to introduce table games. He said he wants a study conducted to see what impact the introduction of the new games will have on Islanders.

“When those tables are introduced let’s make no mistake about it, it’s a full-fledged casino, something this province, this premier and this government said they would never do,” said Brown.

In its first year of operations the CDPEC lost $2.4 million.

Officials believe the facility will balance the books in this its second year.

In March, nearly a dozen people were laid off. Other employees were told their hours were being slashed from 40 hours per week to 32.

Plans for a second racino in Summerside have been put on hold until the Charlottetown facility starts making money.

Mike Randall of the Atlantic Lottery Corporation said games like Texas hold ‘em have become so popular that there are dozens of unregulated games going on in cities and towns throughout the region every night.

“Consumers are clearly looking for this, I think they are also looking for a place that has the ALC stamp of approval,” said Randall. “And they want it in a positive, entertaining, fun environment.”

© The Guardian comments@theguardian.pe.ca 

	Author:
	Source:	Charlottetown Guardian
	Published:	Nov 13, 06
	Full Document:
	CHARLOTTETOWN – A report released by the P.E.I. government Friday which concludes there is no significant difference in the numbers of problem gamblers on P.E.I. since 1999 is misleading and basically irrelevant, says a spokesman for Racino Watch. "The information gathered for the report was done well before the racino in Charlottetown even opened," said Leo Broderick. His lobby group fought the racino because of the increased risk to create more gambling addictions among Islanders who could least afford it. The report on gambling activity on P.E.I., commissioned by the Department of Health, assessed changes in the prevalence of gambling in the province since an original report was produced in 1999. The study was conducted by UPEI professor and researcher Jason Doiron. "The report shows that in comparison to the 1999 study, there is no significant difference in the numbers of problem gamblers on P.E.I.," says Don Gorveatt, manager of mental health and addictions. Broderick said the report says little about VLTs. He was also critical of the timing of the report, late on a Friday afternoon on a long holiday weekend. Research was conducted in the spring of 2005, months before the racino opened at the CDP.