gambling in alberta - Research Services - University of Lethbridge
gambling in alberta - Research Services - University of Lethbridge
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 />
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