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gambling in alberta - Research Services - University of Lethbridge

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IMPACTS OF LEGAL GAMBLING<br />

IMPACTS ON THE PROVINCIAL GOVERNMENT<br />

The previous section has made it clear that the large majority <strong>of</strong> <strong>gambl<strong>in</strong>g</strong> revenue <strong>in</strong> Alberta<br />

s<strong>in</strong>ce 1994 has been received and disbursed by the prov<strong>in</strong>cial government. Thus, the prov<strong>in</strong>cial<br />

government is one <strong>of</strong> the sectors that potentially experiences the largest ‘impacts’ <strong>of</strong> legal<br />

<strong>gambl<strong>in</strong>g</strong>. (Note: Williams, Rehm, & Stevens (2011) have documented that <strong>in</strong>creased<br />

government revenue is the most consistent impact <strong>of</strong> <strong>gambl<strong>in</strong>g</strong> <strong>in</strong>troduction across all studies<br />

<strong>in</strong>vestigat<strong>in</strong>g the socioeconomic impacts <strong>of</strong> <strong>gambl<strong>in</strong>g</strong>).<br />

F<strong>in</strong>ancial Impacts<br />

To evaluate the potential f<strong>in</strong>ancial magnitude <strong>of</strong> this impact, Figure 29 illustrates the<br />

percentage that annual <strong>gambl<strong>in</strong>g</strong> revenue has represented to overall Alberta government<br />

revenue over time. This data is derived from Statistics Canada, which tabulates prov<strong>in</strong>cial<br />

government revenue <strong>in</strong> a standardized way across prov<strong>in</strong>ces and across time periods. Data is<br />

available from 1989 to the present time. Statistics Canada def<strong>in</strong>es Alberta government<br />

<strong>gambl<strong>in</strong>g</strong> revenue as money deposited <strong>in</strong>to the Alberta Lottery Fund, and thus does not <strong>in</strong>clude<br />

corporate tax revenue from cas<strong>in</strong>os and racetracks which is listed under Amusement Tax.<br />

However, <strong>in</strong> Alberta, amusement tax revenue amounts are very small, averag<strong>in</strong>g between $7<br />

and $12 million a year from 1981 to 1996, and ‘0’ from 1997 to present. 60<br />

Figure 29 illustrates that <strong>gambl<strong>in</strong>g</strong> revenue represented only about 1% <strong>of</strong> government revenue<br />

from 1989 to 1993. This did <strong>in</strong>crease significantly from 1993 to 1999 co<strong>in</strong>cident with the <strong>in</strong>flux<br />

<strong>of</strong> revenue from VLTs and slot mach<strong>in</strong>es, and has been <strong>in</strong> the range <strong>of</strong> 4 – 5% from 1998 to the<br />

present time. For the past 10 years the percentage <strong>of</strong> revenue derived from <strong>gambl<strong>in</strong>g</strong> has been<br />

roughly equivalent to percentage <strong>of</strong> revenue the government receives from its taxes and pr<strong>of</strong>its<br />

on alcohol and tobacco, as well as the percentage <strong>of</strong> revenue it receives from property taxes.<br />

Thus, even though there has been a steep and steady <strong>in</strong>crease <strong>in</strong> government <strong>gambl<strong>in</strong>g</strong><br />

revenue from 1993 to 2008 (even <strong>in</strong> <strong>in</strong>flation-adjusted dollars), it is important to recognize that<br />

there have been co<strong>in</strong>cident <strong>in</strong>creases <strong>in</strong> more important sources <strong>of</strong> prov<strong>in</strong>cial government<br />

revenue <strong>in</strong> this same time period that have cont<strong>in</strong>ued to m<strong>in</strong>imize <strong>gambl<strong>in</strong>g</strong>’s overall<br />

contribution to prov<strong>in</strong>cial c<strong>of</strong>fers. To be sure, the magnitude <strong>in</strong>crease <strong>in</strong> government <strong>gambl<strong>in</strong>g</strong><br />

revenue from 1989 to 2009 is much higher than other sources (i.e., this same Statistics Canada<br />

60 Statistics Canada Table 384-0007. Taxes on production and imports, prov<strong>in</strong>cial economic accounts, annual.<br />

CANSIM (database).<br />

131

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