gambling in alberta - Research Services - University of Lethbridge

Another way of looking at the overall magnitude of gambling within the Alberta economy
concerns Statistics Canada estimates of the contribution of various industries (as defined by
North American Industrial Classification System (NAICS)) to provincial GDP. The NAICS defines
the gambling industry as “establishments primarily engaged in operating gambling facilities,
such as casinos, bingo halls, and video gaming terminals, or in the provision of gambling
services, such as lotteries and off-track betting.” It excludes hotels that have associated casinos,
which in Alberta represents 7 out of the 24 casinos (Table 15, p. 86). Table 17 shows the annual
estimates of production in the gambling industry (excluding casino hotels) and total provincial
GDP in Alberta, expressed in current prices over the period 1997-2006. (Statistics Canada
stopped producing these estimates after 2006). As can be seen, the value of goods and services
produced by the gambling industry is seen to grow significantly over this time period. However,
as a percentage of total GDP in each year, the amount is quite small (0.09% to 0.15%). By
comparison, the gas and oil extraction industry accounted for about 15% of the goods and
services produced in the province in 2006. Furthermore, the amounts are relatively stable
(similar to Figure 16 in this same time period).
Table 17: Gambling as a Percentage of Alberta GDP (Current Prices).
Year Gambling Industry All Industries
Gambling as
% of Total
1997 $194,400,000 $192,876,300,000 0.10%
1998 $217,400,000 $195,946,500,000 0.11%
1999 $251,200,000 $211,973,600,000 0.12%
2000 $289,000,000 $261,375,100,000 0.11%
2001 $292,500,000 $276,632,500,000 0.11%
2002 $396,700,000 $275,444,000,000 0.14%
2003 $412,100,000 $303,731,900,000 0.14%
2004 $512,400,000 $338,256,600,000 0.15%
2005 $370,000,000 $390,542,700,000 0.09%
2006 $440,900,000 $432,708,000,000 0.10%
Source: Statistics Canada Table 381-0016 Provincial Gross Output at Basic Prices in Current
Dollars.
Gambling Expenditure per Adult Albertan
Although it is clear that gambling represents a relatively small economic activity within the
Alberta economy, personal expenditures only account for part of GDP. Thus, it is also important
to also look at per capita expenditure on gambling to appreciate the potential
magnitude/importance of gambling expenditures at the individual level.
Net gambling revenue divided by the adult population does not take into account gambling
revenue derived from out-of-province residents (or out-of-province gambling expenditure by
Alberta residents). The adjustment that needs to be made to Alberta gambling revenue to
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