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gambling in alberta - Research Services - University of Lethbridge

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WHERE IS THE MONEY GOING?<br />

The f<strong>in</strong>al step <strong>in</strong> determ<strong>in</strong><strong>in</strong>g the groups/sectors most likely impacted by <strong>gambl<strong>in</strong>g</strong> is to<br />

determ<strong>in</strong>e the immediate recipients <strong>of</strong> <strong>gambl<strong>in</strong>g</strong> revenue and how this revenue is subsequently<br />

disbursed.<br />

Immediate Recipients<br />

Figure 27 illustrates the magnitude <strong>of</strong> net <strong>gambl<strong>in</strong>g</strong> revenue received (after prizes but before<br />

expenses) for the 3 groups that directly receive this revenue: the horse rac<strong>in</strong>g <strong>in</strong>dustry,<br />

community groups or ‘charities’, and the prov<strong>in</strong>cial government. As demonstrated, charity<br />

groups were the primary recipients <strong>of</strong> net <strong>gambl<strong>in</strong>g</strong> revenue until 1987, at which po<strong>in</strong>t<br />

prov<strong>in</strong>cial government revenue started to match charity revenue due to the <strong>in</strong>troduction <strong>of</strong><br />

prov<strong>in</strong>cial <strong>in</strong>stant w<strong>in</strong> tickets and the <strong>in</strong>creased popularity <strong>of</strong> prov<strong>in</strong>cial lottery tickets. This<br />

parity cont<strong>in</strong>ued until 1993. Beg<strong>in</strong>n<strong>in</strong>g <strong>in</strong> 1994 prov<strong>in</strong>cial government revenue rapidly<br />

outpaced charity revenue due to the <strong>in</strong>troduction <strong>of</strong> VLTs, and then slot mach<strong>in</strong>es. The<br />

prov<strong>in</strong>cial government is now the direct recipient <strong>of</strong> approximately 83% <strong>of</strong> all <strong>gambl<strong>in</strong>g</strong><br />

revenue.<br />

Figure 27: Proportion <strong>of</strong> Total Net Alberta Gambl<strong>in</strong>g Revenue Directly Received as a function <strong>of</strong> Year by<br />

Major Sector (<strong>in</strong> 2010 dollars). 56<br />

$3,000,000,000<br />

$2,500,000,000<br />

$2,000,000,000<br />

$1,500,000,000<br />

$1,000,000,000<br />

$500,000,000<br />

56 Note: this does not <strong>in</strong>clude the approximately $3 - $5 million the prov<strong>in</strong>cial government also receives annually<br />

<strong>in</strong> charitable licence fees.<br />

$0<br />

1970<br />

1972<br />

1974<br />

1976<br />

1978<br />

1980<br />

1982<br />

1984<br />

1986<br />

1988<br />

1990<br />

1992<br />

1994<br />

1996<br />

1998<br />

2000<br />

2002<br />

2004<br />

2006<br />

2008<br />

2010<br />

Horse Rac<strong>in</strong>g Industry Charity Groups Prov<strong>in</strong>cial Government<br />

123

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