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gambling in alberta - Research Services - University of Lethbridge

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account for revenue derived from out-<strong>of</strong>-prov<strong>in</strong>ce residents is somewhat difficult to determ<strong>in</strong>e.<br />

Theoretically, it should not be large. Although Alberta is an attractive tourist dest<strong>in</strong>ation, it is<br />

doubtful that many people come here for the purposes <strong>of</strong> <strong>gambl<strong>in</strong>g</strong> as our ma<strong>in</strong> neighbors<br />

(British Columbia, Saskatchewan, Montana) all provide very similar <strong>gambl<strong>in</strong>g</strong> opportunities to<br />

Alberta. Rather, the ma<strong>in</strong> source <strong>of</strong> <strong>gambl<strong>in</strong>g</strong>-related tourism is likely people who have<br />

travelled to Alberta to visit relatives or other attractions, but also opted to visit a cas<strong>in</strong>o while<br />

they were here.<br />

Alberta Tourism reports that there were 2.4 million people who visited Alberta from other parts<br />

<strong>of</strong> Canada <strong>in</strong> 2008 (primarily from British Columbia and Saskatchewan) and another 1.6 million<br />

people who visited Alberta from the United States and overseas. The average length <strong>of</strong> stay<br />

was 11.7 days for overseas visitors, 4.7 days for U.S. visitors, and approximately 5 days for<br />

other-prov<strong>in</strong>ce visitors. The Travel Survey <strong>of</strong> Residents <strong>of</strong> Canada (TSRC) 34 documents that<br />

5.4% <strong>of</strong> other-prov<strong>in</strong>ce visitors reported go<strong>in</strong>g to a cas<strong>in</strong>o while <strong>in</strong> Alberta <strong>in</strong> 2007 and 4.8% <strong>in</strong><br />

2008. Thus, if we assume that roughly 5% <strong>of</strong> all visitors visit a cas<strong>in</strong>o <strong>in</strong> any given year, then the<br />

best estimate <strong>of</strong> the number <strong>of</strong> non-Alberta residents who have visited an Alberta cas<strong>in</strong>o <strong>in</strong><br />

recent years is about 200,000 people per year. Even if all <strong>of</strong> these 200,000 people went to a<br />

cas<strong>in</strong>o twice while they were here and spent twice as much as Alberta residents, it is clear this<br />

would still represent a t<strong>in</strong>y fraction <strong>of</strong> Alberta cas<strong>in</strong>o patronage and revenue. Although<br />

attendance figures are not available for Alberta cas<strong>in</strong>os, there are a few comparison po<strong>in</strong>ts<br />

worth not<strong>in</strong>g: e.g., there were 1,664,000 attendees just to Alberta horse race tracks <strong>in</strong> 2008<br />

(HRA, 2009); and popular <strong>in</strong>dividual cas<strong>in</strong>os <strong>in</strong> neighbour<strong>in</strong>g prov<strong>in</strong>ces have between 5,000 to<br />

10,000 visitors a day (e.g., River Rock Cas<strong>in</strong>o <strong>in</strong> British Columbia; Cas<strong>in</strong>o Reg<strong>in</strong>a).<br />

Thus, it is clear that almost all Albertan <strong>gambl<strong>in</strong>g</strong> revenue dollars represents money spent by<br />

Albertans. This is a very important fact not just <strong>in</strong> the determ<strong>in</strong>ation <strong>of</strong> average <strong>gambl<strong>in</strong>g</strong><br />

expenditure per adult Albertan, but <strong>in</strong> assess<strong>in</strong>g the overall economic benefits <strong>of</strong> <strong>gambl<strong>in</strong>g</strong> to<br />

Alberta (someth<strong>in</strong>g discussed later <strong>in</strong> this report).<br />

Thus, total net revenue divided by the number <strong>of</strong> adult Albertans does give a reasonable<br />

estimate <strong>of</strong> average adult expenditure on <strong>gambl<strong>in</strong>g</strong> <strong>in</strong> Alberta. It will be a slight underestimate,<br />

as it does not <strong>in</strong>clude out-<strong>of</strong>-prov<strong>in</strong>ce <strong>gambl<strong>in</strong>g</strong> expenditure by Albertan residents. However, as<br />

later analyses will show, this is also very small relative to <strong>in</strong>-prov<strong>in</strong>ce expenditure. Also, the<br />

<strong>in</strong>clusion <strong>of</strong> these amounts would not reflect the impact <strong>of</strong> the provision <strong>of</strong> legal <strong>gambl<strong>in</strong>g</strong> <strong>in</strong><br />

Alberta to Albertans, which is the purpose <strong>of</strong> this section.<br />

Figure 17 shows the per adult <strong>gambl<strong>in</strong>g</strong> expenditure as a function <strong>of</strong> year. All these figures<br />

have adjusted for <strong>in</strong>flation to show what their values would be <strong>in</strong> 2010 dollars. Similar to the<br />

f<strong>in</strong>d<strong>in</strong>gs for Total Net Revenue, there has been a very marked rise <strong>in</strong> per adult expenditure.<br />

Current expenditures are almost five times higher than expenditures <strong>in</strong> the 1970s. Most <strong>of</strong> this<br />

34 The TSRC is sponsored by Statistics Canada, the Canadian Tourism Commission, the prov<strong>in</strong>cial governments and two<br />

federal organizations. It is a supplement to the monthly Labour Force Survey that is adm<strong>in</strong>istered to 54,000 households.<br />

94

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