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gambling in alberta - Research Services - University of Lethbridge

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Ultimate Recipients<br />

Gambl<strong>in</strong>g pr<strong>of</strong>its <strong>in</strong> Alberta are typically redirected because <strong>of</strong> pre-exist<strong>in</strong>g agreements<br />

regard<strong>in</strong>g commissions, levies, revenue disbursement, etc. More specifically:<br />

The federal government receives two types <strong>of</strong> payment from Alberta government<br />

<strong>gambl<strong>in</strong>g</strong> revenue. The first payment are taxes that are paid on revenue from slot<br />

mach<strong>in</strong>es, VLTs, ticket lotteries and electronic b<strong>in</strong>go <strong>in</strong> lieu <strong>of</strong> the usual Goods and<br />

<strong>Services</strong> Tax (GST). This tax is <strong>in</strong> addition to the GST paid on the purchase <strong>of</strong> <strong>gambl<strong>in</strong>g</strong>related<br />

goods and services. The second source <strong>of</strong> payment is the prov<strong>in</strong>ce <strong>of</strong> Alberta’s<br />

share <strong>of</strong> the $24 million (<strong>in</strong>dexed to <strong>in</strong>flation) the prov<strong>in</strong>ces agreed to pay the<br />

Government <strong>of</strong> Canada for its withdrawal <strong>in</strong> 1979 from <strong>of</strong>fer<strong>in</strong>g ‘lottery schemes’. This<br />

payment is made by the Western Canada Lottery Corporation on behalf <strong>of</strong> Alberta, and<br />

is based on current population and Alberta’s share <strong>of</strong> ticket lottery sales.<br />

An 0.8% levy is collected by the Canadian Pari-Mutuel Agency on every horse rac<strong>in</strong>g bet<br />

that is placed.<br />

15% <strong>of</strong> prov<strong>in</strong>cial government slot revenue at racetracks is immediately redirected to<br />

the racetrack and another 51.7% goes to the horse rac<strong>in</strong>g <strong>in</strong>dustry (Horse Rac<strong>in</strong>g<br />

Alberta).<br />

15% <strong>of</strong> prov<strong>in</strong>cial government slot revenue at ‘cas<strong>in</strong>o events’ goes to the host charity<br />

and another 15% goes to the cas<strong>in</strong>o owner.<br />

40% <strong>of</strong> slot revenue from First Nations cas<strong>in</strong>os immediately goes to the First Nations<br />

Development fund to benefit First Nations communities.<br />

15% <strong>of</strong> VLT revenue goes to the lounge/bar owner as commission.<br />

50% to 75% <strong>of</strong> total cas<strong>in</strong>o table game revenue earned by charity groups goes to the<br />

host cas<strong>in</strong>o.<br />

Most electronic b<strong>in</strong>go and keno revenue that AGLC collects is returned to the host<br />

charity.<br />

Private lottery retailers receive a 6.5% commission from lottery ticket sales.<br />

A portion <strong>of</strong> the Alberta Lottery Fund (ALF) (averag<strong>in</strong>g 21% <strong>of</strong> ALF funds) is allocated to<br />

community/charity grants.<br />

Thus, Figure 28 displays the more important figure <strong>of</strong> who the ‘ultimate recipients’ <strong>of</strong> net<br />

<strong>gambl<strong>in</strong>g</strong> revenue are after these distributions. This figure still shows the prov<strong>in</strong>cial<br />

government receiv<strong>in</strong>g the largest segment <strong>of</strong> <strong>gambl<strong>in</strong>g</strong> revenue s<strong>in</strong>ce 1995. S<strong>in</strong>ce 1995 its<br />

percentage <strong>of</strong> the total has ranged from 41% to 58% (47% <strong>in</strong> 2010). Charity groups have been<br />

the second largest recipient s<strong>in</strong>ce 1995, with their portion <strong>of</strong> the total s<strong>in</strong>ce 1995 rang<strong>in</strong>g from<br />

22% to 32% (28% <strong>in</strong> 2010). The fluctuation <strong>in</strong> the charity sector proportion relative to the<br />

prov<strong>in</strong>cial government proportion is largely due to the differences <strong>in</strong> the yearly proportion <strong>of</strong><br />

the Alberta Lottery Fund distributed <strong>in</strong> the form <strong>of</strong> charity grants. Private operators (cas<strong>in</strong>o<br />

owners, lounges host<strong>in</strong>g VLTs, lottery ticket retailers) have been the third largest recipient, with<br />

their portion <strong>of</strong> total <strong>gambl<strong>in</strong>g</strong> revenue s<strong>in</strong>ce 1995 rang<strong>in</strong>g from 13% to 22% (16% <strong>in</strong> 2010). In<br />

the past couple <strong>of</strong> years First Nations revenue has grown significantly and they now receive<br />

approximately 6% <strong>of</strong> Alberta <strong>gambl<strong>in</strong>g</strong> revenue. The fifth largest recipient is the horse rac<strong>in</strong>g<br />

124

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