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TAKING THE PROBLEM OUT OF PROBLEM GAMBLING

By Michael D. Lipton, Q.C. and Chad Finkelstein

Good news for gamblers: the problem gambling rates across the province are dropping. That is, unless you are a young adult playing online poker. Recent statistics have indicated that fewer people are gambling than they were just five years ago; however the prevalence among youth gambling, particularly online where underage restrictions seemingly do not exist as barriers, is cause for concern.

The Responsible Gambling Council (RGC), a non-profit agency based in Toronto, is involved in several effective initiatives to combat problem gambling patterns, but perhaps more effort needs to be directed towards the younger and more vulnerable demographic who are exposed to the glamour of playing and winning every time they turn on the television.

The statistics paint a picture of a population substantially no more or less at risk to gambling problems than a decade ago, save for the advent of online poker. Overall gambling rates in Ontario have changed very little since 2001. In fact, while problem gambling remains steady at 6.9 per cent among young adults, the problem gambling rate for adults over 50 has dropped by more than 2 per cent.(1)

The broad patterns must be viewed in conjunction with gambling rates specific to poker to accurately gauge what the effects of this online trend have been. Sixty per cent of Ontarians gamble in one form or another, with 52.4 per cent comprising the largest number of gamblers, those who play in ticket lotteries. This is compared to 5.5 per cent who gamble online as of 2005.(2) While this number may not seem significant, it is noteworthy because only four years earlier, the number of people gambling online was 1.4(3) per cent. And frequency is significant: 25 per cent of Internet gamblers are gambling weekly, while 12.7 per cent are gambling daily. (4)

Interestingly, only 4 per cent of Ontarians who play poker are playing at a bar or casino, while more than half of the province’s poker players never play in a casino at all.(5) Eighteen per cent are spending more time online playing poker, compared with 50 per cent playing the same amount, and 17 per cent playing less online poker than they were two years ago.(6) Of course, it should come as no surprise that young adults 18 to 34 years old are the individuals more likely to be playing. To be precise, 49 per cent of the young adult poker-playing population are more likely to be playing more poker these days.(7)

Poker playing is touted on television, in movies and in print virtually around the clock as not only a likely avenue by which to earn money, but also a glamorous one. Tournament poker players have gained a Hollywood-like status as their celebrity is geared towards a younger audience more than ever before. And with online poker more accessible than ever, the number of underage gamblers participating online is staggering.

A 2003 study of youth between the ages of 9 and 16 showed that while 10 per cent of 11-16 year-olds reported betting on the Internet, almost 95 per cent of those betting reported that the sites they were on did not even require credit cards.(8) The prepaid credit cards offered by gaming websites have reduced spending barriers for the underage population. There is also a major issue with perception. The inescapable exposure to gambling has begun to create social pressures among an already impressionable demographic. One quarter of youth feel that gambling is “cool” and one third agree that it is “fun”.(9) The youth who describe themselves as popular are the ones who are more likely to gamble and take risks, and this has created the sense that it is imperative to be knowledgeable and experienced in gambling in order to fit in. However, the knowledge ends there. While most youth recognize that gambling can create problems, most have a general lack of knowledge of probability. Four per cent of Ontarians believe they could earn a living as a poker player(10), while 10 per cent agree with the statement that “poker is a good way to earn extra money.”(11)

Realistic expectations and awareness of risk

Clearly, the accessibility of Internet gambling is a leading factor contributing to its high frequency rates. It is critical, therefore, that players, especially young adults, understand realistic expectations and the risks that gambling entails. Fortunately, the statistics seem to indicate that most do, as the rates of “problem” gamblers are significantly lower than the overall participation rates. Most people who are gaming for entertainment are spending 1-2 percent of their annual income on it. Anything above that range should start setting off some alarms.(12)

Given that approximately 60 per cent of Ontarians gamble at some point, the fact that 3.8 per cent have a moderate to severe gambling problem makes the issue much more manageable to tackle.(13) A “problem gambler” is considered to be any person “whose ability to resist the impulse to gamble has been compromised, disrupted or damaged personal, family or vocational pursuits.”(14) In 2001, this number was at 4.8 per cent of the Ontario population, so we are seeing a decrease in these compulsions.(15)

However, it is staggering that the rate of problem gambling among 18 to 24-year-olds is at 7 per cent, which is nearly twice the general average.(8) Again, perception is an issue. A recent study showed that less than half of those subjects who scored as having a moderate to severe gambling problem reported having difficulties related to their gambling.(17) There is a large disconnect here and the fact that 78 per cent of youth have received messages from the television or Internet promoting gambling compared to the meager 12 per cent who have seen advertising for responsible gambling further illustrates the need not necessarily for increased gambling awareness messages but certainly better targeted ones.(18)

So what more can be done? Ontario Lottery and Gaming (OLG) and RGC have made their websites particularly user-friendly with easily accessible links to problem gambling information; signs to indicate a gambling problem; hotlines with trained employees; myths and facts; and links to credit counseling resources. The RGC has initiated high school and university drama and program tours, and prevention programs which span many Ontario communities.

New studies are commenced on a regular basis in the hopes of garnering more government support for these initiatives, as well. The RGC also has its widely publicized social marketing campaigns, friends4friends and Gambling and You, which target the family and friends of potential problem gamblers. While the success of these programs is yet to be determined, the RGC, in its advertising efforts on public transit, on television and in movie theatres, is certainly taking the appropriate steps by appealing to those individuals who can motivate a problem gambler to take action.

The success of these initiatives, and the prevalent gambling rate among youth, indicate the most likely successes will come from targeting youth and their perceptions of gambling. Adolescents will always be persuaded to act in a way that is “cool” to their peers so that they will feel accepted. No amount of problem gambling marketing will change this psychology. However, through print ads, television ads and school programs the youth lack of understanding should be targeted. These individuals need to learn the randomness of the game they have chosen. Poker arguably involves a fair amount of skill when sitting at a table next to a competitor. But these same abilities to read people do not apply to the online context, where a keen intuition to observe the player next to you is not necessarily applicable. Future effort should focus on the arbitrariness of the cards and the unlikelihood of winning in a game left to so much chance.

The casinos, themselves, provide gamblers with the opportunities to combat their disorders, although perhaps more could be done in this regard. For instance, according to the OLG website, all gaming facilities must install clocks in all restroom areas.(19) While this may be moderately helpful for the gambler, it would be a much more progressive step to actually install clocks on the casino floor at strategic locations. It is unlikely that this would have any remotely noticeable effect on gambling revenues.

Provinces could do more

The provinces, as well, may be able to do more to expressly recognize problem gambling. Nova Scotia is the only province that specifically states in its legislation that one of the purposes of the Gaming Control Act(20) is to “minimize the opportunities that give rise to problem gambling and other illness” and disruption.(21) Under its Regulations, casino operators are prohibited from permitting certain individuals to play games of chance, including “individuals who appear to be addicted to gambling” and the casino operator shall implement policies and procedures to identify individuals evidencing a gambling problem.(22) Ontario’s only similar acknowledgement is in the Regulations to the Gaming Control Act(23) where it states that an operator is required to implement a program to identify problem gamblers but only if so ordered by the Registrar of Alcohol and Gaming.(24)

Ontario, however, does arrange for a percentage of the gross revenues from its casinos and racetrack slot operations to be used to fund research and prevention of problem gambling, including the Ontario Problem Gambling Helpline.

Another method to deal with problem gambling is the OLG’s Voluntary Self-Exclusion Program. This written request by a person who recognizes his or her gambling problem excludes that individual from entry into a casino for an indefinite term. However it contains no commitment by the gaming venues to actually use best efforts to block entry and purports to shield operators from liability should that individual fail to comply with the ban.

Certainly the limited efforts to fight problem online gambling leave something to be desired. Prepaid credit cards make it easy to play and, aside from warnings about age restrictions and the promise of a loss of winnings if underage play is uncovered, do little to dissuade determined players from participating.

The OLG and casino operators would be prudent to start implementing the existing initiatives to sway problem gamblers and target their families and friends more rigorously. Recent jurisprudence has led to the possible application of host liability to the problem gambling context.(25) In a decision last fall involving lottery fraud, it was found that nothing in the governing legislation exempted the OLG from liability to the gambling public. The Ontario court rejected the notion of unlimited liability to an unlimited public as it related to lottery ticket holders in holding the OLG accountable, and it could therefore do the same in regard to problem gamblers. Given the appropriate context, it is foreseeable that this precedent could one day be applied to casino operators and obligate them to uphold a duty of care to its known problem gamblers.(26)

Around the world, some of the efforts of other countries to combat problem gambling are admirable but unrealistic to apply in a Canadian context, and certainly not necessary given this country’s problem gambling rates. Panama’s proposed bill to restrict entry into casinos based on income(27) and South Africa’s attempt to close casinos for at least six hours a day(28) would never achieve support here.

However, building on the existing gambling help centres currently in casinos, the systems that photograph patrons and automatically identify unwelcome guests, and the revenue contribution from casinos that the government uses for research and treatment of problem gambling are positive steps in a realistic and practical direction. Ensuring that the youth population is as aware of the dangers of gambling as they are the dangers of smoking, for example, will be even more effective in combating problem gambling and allowing for everyone else to responsibly enjoy this type of entertainment.


  1. Responsible Gambling Council, News Releases & Announcements, “Ontario Study Shows Internet Gambling is on the Rise Responsible Gambling Council Releases 2005 Prevalence Study” (19 September 2006) <http://www.responsiblegambling.org/en/media/news_details.cfm?ID=37&media=1>.
  2. Ibid.
  3. Responsible Gambling Council, News Releases & Announcements, “One-in-Five Ontarians Play Poker for Money” (7 November 2006). <http://www.responsiblegambling.org/en/media/news_details.cfm?ID=38&media=1>.
  4. Supra. note 1.
  5. “Around the World”, Newslink (Fall/Winter 2006) at 3.
  6. Ibid.
  7. Ibid.
  8. Jamie Wiebe & Agata Falkowski-Ham, “Understanding the Audience: The Key to Preventing Youth Gambling Problems” (Responsible Gambling Council, November 2003). .
  9. Ibid.
  10. Supra. note 3.
  11. Supra. note 4.
  12. Supra. note 3.
  13. Responsible Gambling Council, “Research & Information - FAQ's”, online: Responsible Gambling Council .
  14. William V. Sasso & Jasminka Kalajdzic, “Do Ontario and its Gaming Venues Owe a Duty of Care to Problem Gamblers?”, (Report submitted to the Ontario Problem Gambling Research Centre, February 2006) at 4.
  15. E. Single, J. Wiebe, A. Falkowski-Ham (2001) “Measuring Gambling and Problem Gambling in Ontario”. Toronto: Canadian Centre on Substance Abuse and Responsible Gambling Council cited in Ibid.
  16. Responsible Gambling Council, News Releases & Announcements, “The Responsible Gambling Council's New TV Ad Targets Young Adults” (15 February 2006). .
  17. Supra. note 1.
  18. Supra. note 8.
  19. OLG, “Responsible Gaming Practices”, online: Ontario Lottery and Gaming Corporation .
  20. 1994-95, c.4.
  21. Ibid., s. 2(c).
  22. N.S. Reg. 40/95 as amended up to O.I.C. 2005-559 (Dec. 15, 2005), N.S. Reg. 226/2005, s. 20(1)(c).
  23. S.O. 1992, c.24.
  24. O.Reg. 385/99, s. 32(3).
  25. Edmonds v. Laplante et. al., Superior Court of Justice court file number 02/CV-226280.
  26. Supra. note 14 at 25.
  27. Supra. note 4 at 15.
  28. “Around the World”, Newslink (Summer/Fall 2003) at 14.

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