THE CHARITY MODEL OF CASINO GAMBLING IN ALBERTA

In the Province of Alberta, casinos are considered to be a form of charitable gaming. Beginning in 1977, eligible charitable organizations were granted licenses for a two-day period for the purposes of raising revenues by holding casinos (Campbell, 1981). These days, charitable groups that are licensed by the Alberta Gaming and Liquor Commission (AGLC) are responsible for conducting short-term charity casinos. The AGLC issues licenses to private casino facility operators to provide space and services for these casinos to operate.

In 2006, there were over 9,300 groups eligible to conduct charitable gaming activities. Charities earned $254-million from casino gaming activities in 2005-2006 according to Alberta Gaming. By 2009-10, charitable earnings had increased to  $323-million and eligible charities numbered more than 11,000.

Campbell and Smith (1998) note that, “while charitable organizations have thrived on gambling proceeds, another beneficiary of this regulatory format has been the private sector service industry that supplies gaming expertise, gaming equipment, and gaming venues.”

Casino & Racino Venues

There were 24 licensed permanent casino facilities in the province as of September, 2010. In addition to permanent casinos, each year the AGLC approves temporary casinos at major exhibitions and summer fairs which generally include both slot machines and table games. Examples include the Calgary Stampede and Edmonton’s Klondike Days.

Gaming facilities with slot machines adjacent to licensed race tracks that offer live horse racing are known as Racing Entertainment Centres (RECs). In many jurisdictions, these facilities are commonly known as racinos. A portion of the revenues earned at RECs goes to support the horse breeding and racing industry as per the Racing Industry Renewal Initiative. The three RECs in the province as of September, 2010 were located in Edmonton, Grande Prairie, and Lethbridge.

Slot Machines & Video Lottery Terminals - How They Differ Video Lottery Terminals (VLTs) and slot machines are both freestanding, interactive, computer-run, devices that offer various games of chance (often simulated casino games such as poker, keno and blackjack) whose outcome is determined by a preprogrammed microchip (Smith & Wynne, 2004). They differ in the following ways: VLTs record wins and losses as credits on the terminal screen. To redeem credits, players press a button to produce a receipt or “cashout ticket” that can be redeemed by the VLT retailer. In comparison, slot machines pay prizes in the form of coins dispensed in the tray of the machine which are then immediately accessible to the player.   In terms of location, VLTs in Alberta are confined to licensed/age-restricted establishments such as bars, taverns and lounges (which may, in turn, be located in a casino). In contrast, slot machines are found only in licensed gambling venues, either casinos, racetracks, or major summer fairs licensed to operate them.   The division of net revenue differs between VLTs and slot machines. VLT retailers receive a commission of 15% of VLT net revenue and 85% is placed into the Alberta Lottery Fund. Casino slot machine revenue is paid to facility operators (15%), charities operating a licensed casino event (15%), and the Alberta Lottery Fund (70%).

References

Alberta Gaming and Liquor Commission. (2001). Achieving a balance: Gaming licensing policy review. St. Albert, AB: Author.


Campbell, C. S. (1981). Parasites & paradoxes: Legalized casino gambling in Alberta, Canada. In W. R. Eadington (Ed.), Gambling papers: Proceedings of the Fifth National Conference on Gambling and Risk Taking (pp. 186-207). Reno, NV: University of Nevada, Reno).


Campbell, C. S., & Smith, G. J. (1998). Canadian gambling: Trends and public policy issues. The Annals of the American Academy of Political and Social Science, 556, 22-35. doi:10.1177/0002716298556001003


Smith, G. J., & Wynne, H. J. (2004). VLT gambling in Alberta: A preliminary analysis. Prepared for the Alberta Gaming Research Institute.