Does Alberta really want to roll the dice on online gambling?
As one of the last hold out provinces in Canada to implement its own online lottery system, Alberta is eying its potential as a revenue source.
The province estimates Albertans spend approximately $150 million on online gambling annually, money that could help bolster government coffers.
While we search for options to make up lost revenue from declining oil prices, $150 million Ĺ„ assuming all online gamblers move to the provincial site Ĺ„ might appear tempting, especially since the province recently stated it would be unable to dig up $540,000 in funding for the Auditor General’s office.
While $150 million is not an insignificant sum, there is never a sure bet at the table. There is always the risk that the administrative and social costs could easily outweigh the gains.
While researching the possibility of Alberta entering the world of online gambling, the Gazette spoke to Giselle Jubinville, a gambling addict who lost $400,000 over the course of 14 years Ĺ„ nearly $30,000 a year. That is just one person.
The province could argue that the social risks of government-sponsored gambling would merely shift the money being spent away from independent sites to where it could benefit the province as a whole.
Unfortunately, government sanctioned gambling more easily lures people into the betting game. Not only does it send the message that gambling is OK, it also 'justifies' it as beneficial for society.
A 2012 article published in Institute of Marriage and Family Canada outlined the dangers of government sponsored gambling across Canada. According to its data, Canadians spend an average of $534 per capita on gambling. Considering not all Canadians indulge in gambling that means many people are squandering substantially more every year.
A report published in 2011 by Dr. Robert William, of the University of Lethbridge, highlighted the social damages associated with gambling in Alberta. That report demonstrates that lower-income families are at greater risk of getting into trouble through gambling.
While those with lower incomes spend less overall, they spend a considerably higher percentage of their total income – nearly 10 per cent for those earning under $20,000 annually compared to two per cent or less for those earning $50,000 or more.
Problem gambling that leaves individuals and families strapped for cash leads to higher instances of crime, domestic problems, divorce, unemployment and debt, all of which negatively affect society and cost the government money in health care, policing and social services.
While the old adage is the house always wins, that is not the case when the government is the one holding the chips. While it would stand to reap the rewards of increased gambling revenue, hopefully it considers that the social costs could outweigh the gains.
The Province isn't alone in its financial problems. With growing unemployment, money is suddenly a concern in many Alberta households. Do we really want our government attempting to solve one issue only to create another?
