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Interesting Gambling Statistics from Canada

By: Shirley Spicer, Monday August 30th 2010
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The legally allowed forms of gambling in Canada are provincial government run lotteries, video lottery terminals, land based casinos and slot machines not in casinos. A report from Statistics Canada has indicated that gambling revenue has reached saturation level. In 2007 the revenue has reached 13.7 billion Canadian dollars (CAD) and has remained more or less at that level since. In 2008 it increased marginally to 13.75 billion CAD and the recently compiled figures for 2009 show the gambling revenues static at 13.75 billion CAD. The Statistics Canada report gives a break up of the gambling revenue over different sectors for 2009. The largest share of 34% is for casino gambling followed 26% for lotteries, 21% for slot machines outside casinos and 19% for video lottery terminals. The latest figures of profits from gambling, which are for 2008, are 6.7 billion CAD, or 4.7% of all provincial revenue.

The Statistics Canada report also correlates average gambling expenditures with household income for 2008. As the household income increases so does expenditure on gambling. Only 51% of households with incomes less than 20,000 CAD spent on gambling and that too only an average of 395 CAD. On the other hand 78% of households with incomes more than 80,000 CAD spent on gambling at an average of 555 CAD. The provincial break up was also available. The average household spending on gambling was highest in Saskatchewan at 720 CAD, followed by Alberta at 645 CAD. It was lowest in Quebec at 390 CAD.

The National Post newspaper makes a detailed report of the revenues from gambling in the province of Alberta. The report states that the revenue from gambling is of the same order as revenue from natural gas or from conventional crude oil. The more worrying aspects are that the revenue from gambling is increasing, whereas the revenue from the geological products is decreasing. Robert Williams, a coordinator with the Alberta Gaming Research Institute, pointed out that the province is dependent on the revenue from gambling. This revenue is allocated to the Alberta Lottery Fund. Lynn Hutchings-Mah of the Alberta Gaming and Liquor Commission explained that this money is used to fund many volunteer and community projects and initiatives. Incidentally the revenue from alcohol is also significant, but that is added to the general revenue and not ear-marked for any special purpose. Alberta faces a record deficit of 4.8 billion CAD this year. The revenues from oil and gas will continue to decline. Bob Ascah, director of the University of Alberta’s Institute for Public Economics, explains why. The United States was the biggest buyer and, with growing shale gas activity in that country, there will be further reduction in purchases. According to Ascah, Alberta will have to look to online gambling in order to balance future budgets.

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