Media Release

For Immediate Release

April 19, 2005

The House Always Wins
Saint Mary’s Arts Professor releases ground breaking research on the gambling problem in Canada

The House Always Wins: Dr. John McMullan has just released ground breaking research on the gambling problem in Canada.

Once the gambling genie is released, it is very hard to contain let alone return to the bottle, according to a sociologist at Saint Mary’s University.

Dr. John McMullan, a professor in the Faculty of Arts at Saint Mary’s, has just released an extensive research paper that explores the current gambling problem in our nation.

“Gambling is now the leader in producing vice-tax-revenues for all provinces and it rivals the revenues that Canadian provinces gain from the sale of alcohol and tobacco combined,” says Dr. McMullan during an interview from The Casino Nova Scotia Hotel, which is located on the Halifax Waterfront.

He’s here strolling the floor of Halifax’s only casino, and monitoring the actions of patrons glued to Electronic Gambling Machines (EGMs), card games, and dice games.

The unmistakable cacophony of alarms, whistles and high pitched melodic rings fill the air. He is passionate about his research in the area of gambling problems and their negative impacts on society; however, he is not an anti gambling advocate.

“Video Lottery Terminals (VLTs) and slot machines in this country are now spinning longer, more often and for higher dollar amounts for governments and the retailers, but all this is being done at the expense of individuals and communal well-being,” adds the author of “The Gambling Problem and Problem Gambling: Research, Public Policy and Citizenry.”

His research documents gambling’s gallop into the 21st century - wagering, profits and investments – and examines gambling’s wallop - the rising rates of problem gambling, the reliance of the industry on its troubled customers and the exploitation of the poor, the less educated and the elderly as part and parcel of gambling’s expansion.

His work also articulates four public policy areas for ethical review and reform: consumer protection, public education, prevention and treatment and the need for a new vision for future gambling. His research utilizes recent research conducted in this area and highlights findings from Nova Scotia, Ontario and Alberta – three locales where gambling has taken its toll on citizens.

“The expansion of gambling has been like a massive natural laboratory experiment on Canadian citizens,” he says.

“For the most part this has occurred without their consultation or permission. Where gambling machines are common, the industry has set the direction and defined a convenience model of consumption - anytime, anywhere - but without considering the consequences of commercialization on its human subjects. Policy-makers and regulators are sitting uncomfortably in the sulky, holding on to the reins and putting the whip to the horse, as the gambling equine turns across to the back-stretch and is tearing for home.”

According to his work, there are now over 100,000 places to make a bet in Canada and betting limits are as high as $1,000 a play in some provinces. Revenues earned from gambling have been on the rise since the early 1990’s. Take for example Nova Scotia, a province that has experienced enormous growth in direct gambling revenues that parallels developments in other provinces. From 1996 to 2004, total gaming wagers in this province increased by over 57% from $844 million to $1.49 billion, a lot of it at the expense of those who have fallen victim to the industry. In Alberta, Ontario and Nova Scotia, almost 40% of government gambling revenues come from a small player-base of approximately 6% or 7% of the gambling population. Therefore the over-reliance on a small player base requires a new government strategies for gambling.

The wallop of gambling’s gallop has to do with the social harms associated with the industry’s growth – an industry where the house always wins, he says. In provinces like Nova Scotia, Alberta and Ontario, gambling among higher income and lower income households is on the rise and the bottom line is that gamblers are depleting their bank accounts, saving less and putting themselves and their future security at risk. The real victims, according to his study, are those from lower income earner categories, less educated and elderly citizens.

Dr. McMullan says that gambling’s gallop and wallop means it’s time for governments in Canada to take action and protect citizens from falling into the gambling trap.

His work recommends that public policy reform address the following areas: player protection measures; sequestration practices; consumer awareness; advertising controls; and, precautionary prevention. As well, his work underscores the urgent need for a new vision for the gambling industry. That is, those from the gambling industry and governments alike must work together in order to ensure the viability of the industry while protecting the well being of citizens.

“At a certain time during a day in Canada almost half of the players in VLT sites are problem gamblers,” says Dr. McMullan. “It begs two questions: How can problem gamblers who lose between $7,000.00 to $10,000.00 a year on average continue to play before depleting their assets and wearing themselves out as consumers? How many more gamblers will enter the market place to replace them and at what cost?”

He says that if industry is to remain financially viable then it will have to reduce its dependency on its troubled customers. This call for a new top down commitment to responsible gambling that develops a broader revenue base of low spending recreational gamblers, at the same time as one removes problem gambling revenue from its pride of place.

“It means mass consumerism not the exploitation of vulnerable customers. It means cashless gambling with strong consumer protection measure such as smart cards. It means responsible advertising and enlightened and honest consumer education. It means effective self exclusion and genuine community consultation and collaboration. It means a news ethics for healthy gambling across the spectrum and especially with regard to electronic gambling that puts precautionary principles before profit making,” he says.

While leaving The Casino Nova Scotia Hotel, Dr. McMullan says he will continue researching the issue of gambling problems and problem gambling that affects the social fabric in our society as we know it.

“We walked in and out of here [The Casino], freely because we are not gambling addicts,” he says while looking at the large sized facility that was surrounded with flashy bright lights and a big billboard, all used to entice consumers to enter its doors.

“Not everyone can say they are as fortunate as we are, and many of them who gamble on VLT machines do so continuously in hundreds of places all across the province… Let’s hope things soon change,” he says.

Dr. McMullan’s paper is now available via the Alberta Gaming Research Institute at http://www.abgaminginstitute.ualberta.ca/

Saint Mary's University is known for its community outreach projects, both in Canada and around the world. Saint Mary's, founded in 1802, is home to one of Canada's leading business schools, a Science Faculty widely known for its cutting-edge research, a comprehensive and innovative Arts Faculty and a new Faculty of Graduate Studies and Research.

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For More Information:

Paul Fitzgerald
Public Affairs Officer
Saint Mary's University, Public Affairs
(902) 420.5514
E-mail: paul.fitzgerald@smu.ca
www.smu.ca