gambling in alberta - Research Services - University of Lethbridge

can be said of charitable gambling revenue, as since the 1980s a wide range of local
organizations that support sports, education, arts, ethno/cultural societies, etc. have come
under the umbrella of ‘charity group’. The citizens of Alberta are also recipients of a significant
portion of the horse racing revenue disbursements and private operator disbursements,
because a sizeable portion of horse racing and private operator profits are spent on local wages
and local supplies. Only a very small percentage of gambling revenue actually leaves the
province and does not benefit Albertans (i.e., federal government payments, and private casino
operator profits that are spent in out-of-province ventures or to out-of-province shareholders).
The geographic origin of provincial gambling revenue relative to its geographic distribution is
difficult to calculate, but appears to be reasonably equitable. The only geographic region that
probably has a case that they receive an unequal ‘return on their money’ is the Fort McMurray
Census Division. This region contributes more gambling revenue by virtue of its higher than
average per capita expenditures on charity gambling, lotteries, and VLTs, and the fact that it has
had a casino since 1994. In return, its Alberta Lottery Fund grant size is the lowest of all Census
Divisions, and because it is a rural area it is unlikely to be receiving higher than average
government services.
Impacts of Legal Gambling on the Provincial Government
Gambling revenue constitutes a very small portion of total provincial government revenue.
Prior to 1994 it constituted approximately 1%. It has been approximately 5% for the past
several years.
There is no doubt that Alberta, like other provinces, has come to expect this additional small
revenue stream each year to help support its delivery of government services for Albertans, and
would miss it if it were gone. However, the reality is that if gambling revenue ended it would
only require the provincial government to effect a relatively small decrease in annual
expenditures and/or a relatively small increase in other sources of revenue to compensate (i.e.,
an increase in personal taxes, corporate taxes, or royalty payments on petroleum products).
(Although there is no doubt there would be reticence to do this because of the potential
political repercussions).
The Alberta government’s proportion of revenue derived from gambling has tended to be
higher than other provinces. However, this is largely due to the higher expenditures of Alberta
gamblers. This higher expenditure, in turn, appears to be due to the relatively high availability
of casinos and EGMs in Alberta plus the higher than average after-tax income of Albertans.
A conflict of interest exists when the regulator (i.e., government) and the operator are part of
the same organization and the regulator is the primary financial beneficiary of gambling (as is
the case in Alberta). This conflict of interest potentially compromises the regulator’s ability to
implement truly effective problem gambling prevention policies and to effectively regulate the
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