gamingstrategy - Prince Edward Islandof the Atlantic Lottery Corporation, a Crown Corporation established and owned by the four Atlantic Provinces. The ALC operates provincial gaming

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Leadership, Integrity and Responsibility:A Responsible Gaming Strategy for

Prince Edward Island

A Strategy Prepared by Hon. Wesley J. Sheridan Minister Responsible for the PEI Lotteries Commission

For more information contact:

Office of the Provincial TreasurerSecond Floor South, Shaw Building95 Rochford Street, P.O. Box 2000

Charlottetown, PE, C1A 7N8

Telephone: (902) 368-4050Facsimile: (902) 368-6575

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Foreword from Minister Wesley Sheridan

On behalf of the Government of Prince Edward Island, I am pleased to present Leadership,Integrity, and Responsibility: A Gaming Strategy for Prince Edward Island.

This strategy will place Prince Edward Island at the forefront in achieving responsible gaming -preventing and reducing the problems that can arise from gaming, while maximizing its positivesocial and economic aspects for Islanders.

As a foundation of this strategy, Prince Edward Island will lead the nation in reducing theavailability of Video Lottery Terminals (VLTs). When this strategy is fully implemented, PEI willhave the fewest VLT sites per capita in Canada and fewest VLTs per capita in Atlantic Canada.

This strong action to prevent the negative impacts of gaming is complemented by a range ofmeasures to promote responsible gaming by Islanders, to ensure the fairness and integrity of playand to help Islanders adversely affected by excess.

The strategy also charts a forward-looking course, setting out an action plan to ensure thatIslanders benefit as fully as possible from gaming. Under the strategy, gaming revenues will betargeted to activities and events that enhance and strengthen our social fabric. Government willwork closely with charitable organizations to help them adapt their gaming fundraising to achanging and challenging competitive environment. And government will maximize the economicbenefits to P.E.I. from responsible gaming.

This strategy will provide the leadership to ensure both responsibility and integrity throughout thegaming sector in Prince Edward Island well into the future.

In closing, my thanks go to the many organizations and individuals who contributed to this, PrinceEdward Island’s first-ever responsible gaming strategy. Their advice and insights were valuable tome and to the team which worked to develop this strategy. These views were diverse and oftendeeply held, and this strategy has sought to strike a balance that will produce the best possibleoutcome for the Island.

Sincerely,

Wesley J. SheridanMinister Responsible for the PEI Lotteries Commission

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Leadership, Integrity and Responsibility:A Responsible Gaming Strategy for


Table of Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Environmental Scan: Key Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Guiding Themes and Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Core Themes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Guiding Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Achieving a Responsible Gaming Sector: Action Plan . . . . . . . . . . . . . . . . . 9

Prevent Problem Gambling: Sharply Reduce VLT Sites and Numbers . . . . 9

Prevent Youth Gaming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Promote Responsible Gaming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Enhance Treatment Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Ensure Integrity and Fairness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Maximize Social Benefits of Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Strengthen the Charitable Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Secure Economic Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

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1

Introduction

Leadership, Integrity and Responsibility:A Responsible Gaming Strategy for Prince Edward Island

Gaming has a long history on Prince Edward Island. From gamesof bingo at the local hall, to friendly card tournaments, to pickinga favourite horse to win the Gold Cup and Saucer Race, Islandershave long enjoyed playing games of chance for fun andentertainment. Over the years, revenues from gaming havesupported many worthwhile causes and met many needs amongour charitable organizations and our communities.

Recent years, however, have seen a rapid rate of social, economicand technological change in all domains of our lives. Gaming isno exception. It has grown very quickly worldwide, propelled bythe development of new gaming products and the increasedaccessibility provided by new communications technologies.These trends have both responded to and reshaped consumerattitudes and gaming behaviours. In Prince Edward Island, aselsewhere, the changing scope and scale of gaming has increasedboth its risks and its potential benefits.

Government must show leadership in preventing and reducing thenegative impacts of gaming, while ensuring that its benefits arerealized for Islanders as fully as possible.

This strategy, Leadership, Integrity, and Responsibility: AResponsible Gaming Strategy for Prince Edward Island has beendeveloped to achieve those goals. Over the last year officials havecarried out research and consultations to develop the strategy andplan set out in this report.

Prince Edward Island’s first-ever responsible gaming strategy isbased on the evidence provided by recent in-depth research intotrends and patterns of problem gambling in PEI, complementedby input from a wide range of stakeholder organizations. It seeksto balance the diverse views and priorities expressed byresearchers, gaming consumers, charitable organizations,

“Government must showleadership in preventingand reducing the negativeimpacts of gaming, whileensuring that its benefitsare realized for Islandersas fully as possible."


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Background

addictions treatment providers, gaming product providers andothers in order to achieve responsible gaming in Prince EdwardIsland.

The strategy opens with a brief description of the evolution ofgaming and its regulatory regime in Prince Edward Island. Next,it highlights and analyzes the key trends shaping the developmentof this strategy. The strategy then sets out its guiding principles,based on the core themes of leadership, integrity, andresponsibility. In support of those principles, an action plan isdetailed; one with an integrated, balanced range of measures toprevent and ameliorate the harms of gaming while ensuringIslanders benefit from any revenues derived from responsibleplay.

The practice of gaming stretches back into ancient times andtakes place in societies around the world. In Canada, gaming wasformally legalized just over a century ago when small raffleswere permitted. Between 1906 and 1925, lotteries wereintroduced, on-track betting was allowed and a special exemptionwas given to agricultural fairs allowing organizers to operategambling venues. In the past three decades, governments acrossCanada have significantly increased their involvement in andregulation of gambling.

In Prince Edward Island, the Lotteries Commission Act waspassed in 1976, establishing the Commission as the bodyresponsible to manage and operate gaming activities in PrinceEdward Island on behalf of Government or a Governmentpartnership. The Act also empowers Government to makeregulations regarding all aspects of gaming activities in theprovince.

In 1985, provinces were given exclusive control of gaming inCanada. The Criminal Code of Canada provides that gaming islawful if it is conducted and managed by a government of aprovince, or if a charitable or religious organization is licensed by

“...an action plan isdetailed; one with anintegrated, balancedrange of measures toprevent and amelioratethe harms of gamingwhile ensuring Islandersbenefit from any revenuesderived from responsibleplay.”

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a province to conduct and manage a lottery scheme underprescribed terms and conditions.

In fulfillment of this responsibility, the Government of PEI hasestablished a regulatory framework over the years:

• The PEI Lotteries Commission Bylaws, 1976, set outdetailed provisions on the functioning of the Commission.

• The Atlantic Lottery Regulations, 1976, empower theLotteries Commission to enter into an agreement with thethree other Atlantic Provinces to establish the AtlanticLottery Corporation (ALC).

• The Provincial Super-Loto Regulations, 1978, enable theAtlantic Lottery Corporation to participate in nationallotteries such as Super-Loto held by the InterprovincialLotteries Corporation.

• The Gaming Centre Control Regulations, 2005, set outthe regulatory regime governing the operation ofelectronic gaming devices, i.e. Video Lottery Terminals.

Since these regulations were established, they have beenamended on a number of occasions to take account of newgambling products, technologies, trends, and issues.

Under this legislative framework, the Minister responsible for thePEI Lotteries Commission is responsible for overall leadership,direction, and control of gaming in PEI. These responsibilities areexercised through the PEI Lotteries Commission, which consistsof the Minister responsible, the Deputy Provincial Treasurer, andone other member from the public service, normally a seconddeputy minister. Gaming operations in PEI are the responsibilityof the Atlantic Lottery Corporation, a Crown Corporationestablished and owned by the four Atlantic Provinces. The ALCoperates provincial gaming programs such as video lottery,Atlantic 6/49, and various scratch and win games, deals withbusinesses licensed to sell tickets and operate electronic gamingdevices, and, in PEI, operates the Charlottetown Driving Park andEntertainment Centre.


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Environmental Scan: Key Trends

The gaming sector in PEI includes a diverse range ofstakeholders. A number of community organizations sponsor andoperate gaming activities to raise charitable revenues, includingthe Royal Canadian Legion, Kiwanis and Lions Clubs. Some 194retailers in communities across PEI are licensed to sell lotterytickets and products, and a further 85 licensed entertainmentestablishments are licensed to operate a total of 386 VideoLottery Terminals (VLTs). As well, the ALC operates theCharlottetown Driving Park and Entertainment Centre, a tourismdestination racino offering harness racing betting and fine dining.This location has a further 200 VLTs, and Texas Hold’em Poker.

Stakeholders also include gaming consumers and the services andorganizations that work on their behalf. While many Islandersenjoy problem-free gaming, a smaller group of Islandersexperience problems with gaming or are at risk of developingproblems. These individuals have access to a treatment programat PEI Addiction Services established earlier this decade,complemented by self-help groups in the community such asGamblers Anonymous.

To be effective, this strategy must be founded on knowledge andunderstanding of current trends, their impacts and the issuesarising from those. The most significant of those are outlinedbelow. Where applicable, a more detailed analysis is included asbackground information for the action measures set out later inthis strategy.

Consumer trends:

• As in other provinces, gaming is very common in PrinceEdward Island, with about four-fifths of all adultsparticipating at least a few times a year.

• The most popular forms of gaming in PEI are lotteries,charitable gaming and instant-win tickets.

“Some 194 retailers incommunities across PEIare licensed to sell lotterytickets and products, anda further 85 licensede n t e r t a i n m e n te s tab l i shment s a relicensed to operate a totalof 386 Video LotteryTerminals (VLTs).”

“To be effective, thisstrategy must be foundedon knowledge andunderstanding of currenttrends, their impacts andthe issues arising fromthose.”

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� Overall participation in virtually all forms of gamingdecreased between 1999 and 2005 except for lotteries,which increased. Weekly participation rates, however,were more stable.

� Per capita spending on gaming among adult Islanders isbelow the national average and trending downward.

Problem gambling:

� Provincial and national research studies indicate that1.6% of Islanders are moderate risk gamblers or problemgamblers. This rate is stable over time and is similar to, orlower than, other provinces.

Pressures on charitable gaming:

� Gaming is a significant source of revenue for manycommunity organizations in PEI, with over 1,000 licensesissued in 2006-07. Raffles account for over three-quartersof all licenses.

� Charitable organizations in PEI have expressed concernthat their gaming revenues are declining.

� Revenue from bingo was just over $3.2 million in 2006-07, down slightly from $3.3 million the year before. Netrevenue after prizes and expenses saw a bigger drop,however, from $1.7 million to 1.2 million.

The changing gaming marketplace:

� Local competition for resident and visitor gaming dollarsis increasing with the planned construction of a casino inMoncton.

� New gaming alternatives offered over the Internetrepresent a diverse, unregulated, and rapidly developingsource of competition for Prince Edward Island.

“Per capita spending ongaming among adultIslanders is below thenational average andtrending downward.”

“Charitable organizationsin PEI have expressedconcern that their gamingrevenues are declining.”


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Guiding Themes and Principles

Changing regional and national approaches:

• Several provinces have developed gaming strategies orexpanded their regulatory frameworks in the past fewyears to move toward a more responsible gaming sector.

• Nova Scotia released “A Better Balance,” their firstgaming strategy in 2005, which detailed additionalresources for treatment and prevention, targetededucation programs for youth and seniors, cutting thenumber of VLTs, removing the stop button, slowing thespeed of play, and reducing hours of operations, FirstNations gaming arrangements, help for the charitablesector, and improvements to accountability and decision-making overall.

• In 2008 New Brunswick released ResponsibleManagement, Responsible Play in a ResponsibleEnvironment, which outlined plans for a destinationcasino, a stronger charitable gaming policy, newpartnership models, new Responsible Gaming Initiatives,and VLT Reform.

• These initiatives and their impacts have been analyzed,providing valuable information and insights to thedevelopment of this strategy.

Core Themes

This strategy is defined by three core themes: leadership,integrity, and responsibility.

The trends described above make it clear that strong leadershipis needed to set the best course for gaming in Prince EdwardIsland in a changing environment. Realistic leadership recognizes

“ This strategy is definedby three core themes:leadership, integrity, andresponsibility.”

“...strong leadership isneeded to set the bestcourse for gaming inPrince Edward Island in achanging environment.”

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that gambling is a social activity that has occurred for thousandsof years in societies worldwide – an activity that if excessivelyrestricted will only be driven underground, doing more harm andless good. Many Islanders enjoy gaming, and it is Government’sposition that they should have the choice to do so – but thatgaming must take place in an environment of fair and responsibleplay.

Leadership meets the challenge of finding a balance between thediverse views, needs, and concerns of those affected bothpositively and negatively by gaming, guided by the best and mostrecent research available.

Integrity is essential to public trust in gaming, and to attaining thehighest and fairest level of benefits from gaming. This strategyfurther strengthens the regulatory regime ensuring fairness andintegrity in gaming. Islanders who choose to partake in gamingmust be assured that their chances of winning are not only fairlyrepresented, but equal to all other players.

The theme of responsibility is at the heart of this strategy.Responsibility means preventing and reducing adverse impactsfor those Islanders who have difficulty setting limits on theirplay. It means making the best possible use of the significantrevenues generated by gaming for good works in our society. Itmeans partnership with community organizations to help themadapt to and meet the challenges of a changing gamingmarketplace. And it means supporting small businesses acrossPEI – retailers, entertainment venues, horsemen – to gain a fairshare of the benefits of gaming.

To fulfill these themes, five key principles have been developedto guide this strategy.

Guiding Principles

Social Responsibility: To be socially responsible is to considerthe effect of your actions on everyone in your community.

To offer socially responsible gaming alternatives, Governmentmust fulfil certain obligations. Government must build broad


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public awareness about gaming, ensure that each and every playerhas access to information on gaming products, and, wherenecessary, provide services for the treatment of problems withgaming.

To ensure social responsibility, Government must also becognizant of, and strive to eliminate, illegal gaming enterprisesthat do not provide the same degree of social responsibility ingaming.

Public Trust: The public should be confident that any productoffered by the Government or its agent will be fair and equitableto all. Integrity will be the foremost consideration for any productoffered or sanctioned by the Government of Prince EdwardIsland.

Player Protection: Player protection means more than justoffering a fair game. It encompasses the total experience that aperson has when engaging in gaming activities. It requiresproducts to be offered responsibly, through channels that ensureintegrity both in delivery and in the determination of winners.

It means that gaming must be supported with treatment andprevention programs for those who lose control of theirexperience. Player protection, linked with social responsibility,is the foremost consideration in this responsible gaming strategy.

Strengthened Communities: Government involvement ingaming has two primary purposes: to ensure the protection of itscitizens, and to guarantee that funds from gaming are given backto the community. Government will consider the needs of allstakeholders throughout execution of this strategy.

Responsible Fiscal Management: The mandate to managegaming carries obligations. Government must be fiscallyresponsible, providing returns from gaming activities to supportcommunity initiatives.

Gaming Strategy

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Achieving a Responsible GamingSector: Action Plan

Prevent Problem Gaming: Sharply Reduce VLT Sitesand Numbers

Issue

Research clearly demonstrates that Video Lottery Terminals arethe gaming product most strongly associated with problemgambling. As a result, VLTs are the component of the sector thatis of greatest concern to Islanders, and the focus of muchdiscussion and debate.

Strategic Direction

Over the next two years, Government will make PEI a nationalleader by sharply reducing Video Lottery Terminal (VLT) sitesand numbers.

Background

In the 1980s, PEI saw the emergence and rapid expansion ofillegally operated video poker machines. This ‘grey area’ marketwas totally unregulated, offering the players no assurance as tothe integrity of the game. The machines were operated in placeswhere minors had easy access, such as convenience stores.Revenues earned were not declared, meaning that moniescollected did not make their way into health care or socialsystems to develop or fund programs for those who werevulnerable to excess.

In 1991, Government intervened, establishing regulations toaddress these concerns. Through this intervention, guidelineswere established for fair play and a portion of revenues wasdirected back to taxpayers. Over time, regulations werestrengthened further when VLTs were restricted to licensedestablishments, reducing the number of sites and restrictingaccess by youth. In 2003 the Atlantic Lottery Corporation became

“...Government will makePEI a national leader bysharply reducing VideoLottery Terminal (VLT)sites and numbers.”


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the sole operator of the VLT program on behalf of theGovernment of PEI.

In recent years, research has provided mounting evidence on therole of VLTs in problem gaming. In his 2006 study, ProfessorJason Doiron found that participants who engaged in VLTgambling in the year prior to the survey were 38 times morelikely to have a gambling problem than non-VLT gamblers.Noting that most Islanders who develop problems with gamblingdo so in relation to VLT play, he called for a decrease in theavailability of VLTs on PEI: “Availability of VLTs is related bothto the total number of VLTs in the province and the total numberof venues containing VLTs. The most effective approach todecreasing availability would be lowering both of thesenumbers.”

Clearly, the question is not whether the regulations shouldbecome more stringent, but rather, how much more stringent theyshould become.

Some have called for a complete ban on VLTs. Enforcementagencies across Canada strongly feel, however, that if legal videolottery terminals were totally removed from licensedestablishments, illegal machines would proliferate, drivinggambling underground. Such gambling would not offer thecontrols and supports available in a responsible gamingenvironment.

Government has a responsibility to balance the desire of Islandersto have access to a regulated system of video lottery terminalswith the need to reduce the availability of the machines to thosewho may experience problems playing within their limits.

To strike this balance, a deliberate planned consolidation andreduction of video lottery terminals will be undertaken.

Actions

(A) The number of video lottery sites will be reduced by 50%across Prince Edward Island.

“The number of videolottery sites will bereduced by 50% acrossPrince Edward Island.”

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Prince Edward Island will become a national leader, with thelowest number of sites per capita. A reduction in access to VLTsis widely recognized as an effective way to increase socialresponsibility in VLT programs. A phased reduction will beimplemented upon the introduction of site business andperformance standards.

(B) The number of video lottery terminals will be reduced by20% on Prince Edward Island.

This reduction in the number of VLTs by 20% will make PrinceEdward Island the leader in Atlantic Canada for the lowestnumber of VLTs per capita.

(C) Commissions will be reduced for siteholders with morethan five video lottery terminals.

The current commission for all siteholders is 20%. A new classof sites will be established for siteholders with more than fivevideo lottery terminals, and the commission level for those siteswill be reduced from 20% to 15%.

(D) Business and performance standards will be developedand introduced to all video lottery retailers.

The Prince Edward Island Lotteries Commission and the AtlanticLottery Corporation will develop site and business standards forproviders of integrated gaming products. These standards willinclude an open and transparent process for selection of sites,which will be applied to carry out the 50% reduction in sitescalled for under Action A above.

Siteholders’ agreements will be modified to include business andservice standards, including customer service levels, minimumstaffing, and site cleanliness.

“The number of videolottery terminals will bereduced by 20% on PrinceEdward Island.”


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(E) Prince Edward Island branches of the Royal CanadianLegion which currently have VLTs will not be impacted.

The 11 Royal Canadian Legion branches which currently haveVLTs will not be affected by the reduction in site numbers. Thismeasure recognizes the crucial role that VLT revenue plays in theongoing success and viability of a number of Legion branches.Legions will be expected to participate in the responsible gamingmeasures and requirements outlined in the following section.

Lead Organization

Government will direct the Atlantic Lottery Corporation todevelop site standards and to implement required changes to theVideo Lottery Terminal network.

As well, government will request that Atlantic LotteryCorporation provide options for adjustment allowances for thosesiteholders impacted by this consolidation.

Timing of Implementation

Within six months:

• The Prince Edward Island Lotteries Commission and theAtlantic Lottery Corporation will develop site andbusiness standards for all siteholders within the VideoLottery Program in Prince Edward Island.

Within twelve months:

• The consolidation of VLTs in the western portions of theprovince will be completed.

Within eighteen months:

• The consolidation of VLTs in the eastern portions of theprovince will be completed.

“Prince Edward Islandbranches of the RoyalCanadian Legion whichcurrently have VLTs willnot be impacted.”

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Prevent Youth Gaming

Issue

Despite existing restrictions on gaming by youth, researchindicates that a high proportion of Island youth participate ingaming, and that problem gamblers are far more likely than non-problem gamblers to report gaming during childhood and youth.

Strategic Direction

Government will amend legislation and establish compliancemeasures to further restrict access by youth to gaming productsand activities.

Background

Currently, in Prince Edward Island, youth must be 18 years of ageto purchase tickets, and 19 to play VLTs.

Despite these restrictions, successive Student Drug Use Surveysindicate extensive participation in gaming among youth. The2007 Survey found that overall, 59% of students in Grades 7, 9,10, and 12 had played one or more of nine gambling activities formoney in the year preceding the survey. Two-thirds of males hadtaken part in gaming, compared to one half of females. Gamingparticipation increased steadily with age, rising from 46% inGrade 7 to 70% in Grade 12. About 6% of students reported usingfalse identification or lying about their age in order to gamble.Three per cent of students were at risk of developing gamblingproblems, while 1.6% met the definition of problem gambling.Males were three times as likely as females to be at-risk orproblem gamblers. Young people are increasingly accessingunregulated online gaming sites. This is introducing them to ahigher-risk, higher-stakes form of gaming than had beenpreviously available.

“Government will amendlegislation and establishcompliance measures tofurther restrict access byyouth to gaming productsand activities.”


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Participation by form of gaming is shown in the chart below.

In his 2006 study, Professor Doiron found that problem gamblerswere far more likely to have begun gambling at a young age.Almost half of all problem gamblers, 44%, reported gamblingbefore the age of 16, compared to 16% of non-problem gamblers.Problem gamblers were more than four times as likely as non-problem gamblers to have a big win early, at 63% compared to14%. Almost one-third of problem gamblers reported playingcards for money with acquaintances during childhood, and one-quarter had played bingo. VLT play or betting on games of skillwas each reported by 6% of problem gamblers. All these rateswere far higher than among non-problem gamblers, whose mainform of childhood gaming was lotteries.

Professor Doiron recommended “… development of newlegislation and intensified enforcement of existing legislationrelated to prohibiting of gambling among minors....” As well, hecalled on organizers of charitable gaming events to play a role inpreventing children from participating in these activities.

Actions

(A) Age of majority legislation will be amended to establishthe age at which gaming is permitted.

Government will make PEI a Canadian leader by implementinglegislation on the age of majority for the purchase of gamingproducts, making it illegal for young people under the age of 19to buy lottery products.

“ A g e o f m a j o r i t ylegis lat ion wil l beamended to establish theage at which gaming ispermitted.”

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(B) Retailers will be educated on the age of majoritychanges.

Government will fund a Retailer Education and Monitoringproject to ensure compliance with the new requirements on ageof majority. The Atlantic Lottery Corporation has recentlyestablished a Retailer Education and Monitoring Program. Thisprovides retailers with in-depth information about the regulationssurrounding the sale of lottery products as well as a “secretshopper” program to ensure these products are not sold to minors.The Province will enhance this with the introduction of its owneducation and monitoring program.

Lead Organizations

Provincial Treasury staff will develop legislative amendments onbehalf of the Minister responsible.

The PEI Lotteries Commission will develop the RetailerEducation and Monitoring Program.

Timeframe for Implementation

Within six months:

• Drafting of legislative and regulatory amendments will becompleted.


• The Retailer Education and Monitoring Program will bedeveloped and implemented.


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Promote Responsible Gaming

Issue

Public education, awareness and research all play vital roles inpreventing problem gaming.

When players understand they are participating in a game ofchance, one that is random and without guarantees, they will havea better chance of playing within their limits.

For those who face difficulties in playing within their limits, moreintensive early intervention supports must be available.

Strategic Direction

To promote and support responsible gaming, government willenhance resources for education, awareness, research, andtreatment.

Background

The core elements of a responsible approach to industrymanagement include providing clear and accurate information toplayers, investing in research to better understand the issuessurrounding problem gaming and ensuring access to treatment foranyone who does experience a problem.

P.E.I. is fortunate to already have a strong research foundation toguide its work. The detailed studies by Professor Jason Doiron in1999 and again in 2006 provide valuable baseline data on whichto measure the impacts of this strategy. This made-in-P.E.I.research is complemented by a growing body of research andexperience in other jurisdictions.

Among other valuable findings, this research indicates thatattitudes and beliefs about gaming differ dramatically betweenproblem and non-problem gamblers. The 1999 GamblingPrevalence Study found that problem gamblers are likely to have

“Publ i c educa t ion ,awareness and researchall play vital roles inprevent ing problemgaming.”

“To promote and supportresponsible gaming,government will enhanceresources for education,awareness, research, andtreatment.”

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a distorted perception of their likelihood of winning and to over-estimate their control over outcomes.

Existing measures demonstrate the benefits of providinginformation to address misperceptions and support appropriatechoices by players. In 2005 the Charlottetown Driving Park andEntertainment Centre (CDPEC) established a ResponsibleGaming Information Centre. This centre has proven to be asuccessful model offering support services to players, includinginformation on sources of assistance and support for thoseexperiencing problems. In addition, ALC currently has inoperation at CDPEC a computer program that calculates howmuch it would cost a player per hour/month/year to play slots atvarying levels of betting.

This element of the strategy builds on the progress that hasalready been made in awareness and research.

Actions

(A) Government will match the national average bydesignating 1.5% of gaming revenues to supportResponsible Gaming initiatives.

Based on 2007-08 revenues of $15.4 million, this commitmentrepresents an investment of over $230,000 in responsible gamingmeasures. This is in addition to monies already allocated by theDepartment of Health for Addictions Services. These dedicated funds will go toward public education andawareness, targeted information programs for at-risk gamblers,research, and treatment for people experiencing gamblingproblems. Education and research measures are set out below,and enhanced treatment programs are described in the followingsection.

“Government will matchthe national average bydesignating 1.5% ofgaming revenues tosupport ResponsibleGaming initiatives.”


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(B) Information supports to help players make appropriatechoices will be expanded both within and beyond theCharlottetown Driving Park Entertainment Centre.

The Responsible Gaming Information Centre (RGIC) model atthe CDPEC will be extended throughout the industry to ensurethe consistent delivery of these services for players. The RGICprogram and service concept will be scaled to fit each venue inwhich it is offered.

The Province will expand the MARGI (Mobile Access toResponsible Gaming Information) program. MARGI is a machinethat illustrates the randomness of the VLTs. It is currently housedat the CDPEC but will also be taken where needed to providefurther education.

A computer program, which is currently used at the ResponsibleGaming Centre at the CDPEC, allowing people to calculate thecosts of various levels of VLT play will be placed online on theDepartment of Health website -- allowing people to access thisinformation from the privacy of their own homes.

Government will also hold discussions with the Atlantic LotteryCorporation to explore some innovative approaches to encourageplayers at the CDPEC to play within their limits. One potentialapproach will have responsible gaming messages to scroll brieflyacross the screen of video lottery terminals after 30 minutes ofconsecutive play. Another measure would see recordedresponsible gaming messages being played at intervals across thesound system at the CDPEC. These messages would provide ashort break in focus, allowing and encourage players to stop fora moment and think about the time and resources they arededicating to game play.

(C) Public messaging in support of responsible gaming willbe increased.

A key recommendation in Professor Doiron’s 2006 study was acall for increased television advertising on responsible gaming.The impact on youth of televised poker tournaments and othergambling activities was a particular concern. “To counteract the

“A computer program, ...,allowing people tocalculate the costs ofvarious levels of VLT playwill be placed online onthe Department of Healthwebsite...”

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pro-gambling messages delivered by these programs, it isrecommended that televised responsible gambling messages bedelivered as well.”

To expand public messaging on responsible gaming, the AtlanticLottery Corporation will develop a partnership model tostrengthen connections with other stakeholders. In keeping withthe Government’s emphasis on preventing gaming by youth, theALC will place particular emphasis on strengthening itspartnership with the education system.

(D) An Advisory Council on Responsible Gaming will beestablished.

An Advisory Council on Responsible Gaming will be establishedto offer guidance on the distribution of the funding dedicated toresponsible gaming initiatives.

The Council will include members from the addictions servicesfield, post-secondary institutions and the responsible gaming staffat the Charlottetown Driving Park Entertainment Centre. TheCouncil’s mandate will include reviewing and consideringresearch proposals on gaming study and examining theeffectiveness of existing and future responsible gaminginitiatives. The Council may also provide advice on collaborativeresponsible gaming initiatives with other jurisdictions,particularly within the Atlantic Region.

Lead Organizations

The PEI Lotteries Commission will facilitate the collection anddistribution of funds to support future responsible gamingprograms.

ALC will play a lead role in developing the education andawareness components of this strategy through the execution ofa scaled Responsible Gaming Information Centre to all gaminglocations in Prince Edward Island.

“To expand publicmessaging on responsiblegaming, the AtlanticLottery Corporation willdevelop a partnershipmodel to strengthenconnections with otherstakeholders.”


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PEI Addictions Services, the CDPEC, and post-secondaryinstitutions will provide their expertise to the Advisory Councilon Responsible Gaming.


Within six months:

• The strategy to scale and execute the Responsible GamingInformation Centre concept to all gaming locations willbe completed.

• The funding designated for Responsible Gaming will beallocated to this strategy’s education, research, andtreatment priorities.

• The Advisory Council on Responsible Gaming will beformed with a clear mandate and goals.

• A computer program, currently found at the CDPEC, tocalculate the costs of VLT play will be available online.


• The Province will expand the MARGI program to furtherinform players.

• An enhanced social marketing campaign on responsiblegaming will be developed and introduced.

Within two years:

• Scaled versions of the Responsible Gaming InformationCentre will be implemented in all gaming locations onPrince Edward Island.

“The Advisory Council onResponsible Gaming willbe formed with a clearmandate and goals.”

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Enhance Treatment Services

Issue

Most people who use gaming products play responsibly andwithin their limits. But research indicates that a small proportionof Islanders have a gambling problem or are at some risk ofdeveloping a gambling problem. In offering gaming products,government also has a responsibility to offer the servicesnecessary to help these Islanders avoid or overcome theirproblems.

Strategic Direction

Government will expand resources for treatment of problemgambling.

Background

Problem gambling takes a toll on individuals, their families, andtheir communities. Reducing that toll must be a key priority forthis strategy. The prevention and early intervention measuresoutlined above will help to prevent problem gambling, reducingits prevalence in the medium and long term. But it is alsoessential to help those who are already encountering problems.

In 1999, research indicated that about 3% of adults surveyed wereproblem gamblers. In response, a gambling addiction programwas established in recent years by PEI Addiction Services. Theprogram’s services include screening and assessment, short-termin-patient stabilization if necessary, individual counselling, grouptherapy, psycho-educational sessions, family counselling, after-care, long-term follow-up, and referral to other agencies such asGamblers Anonymous and Credit Counselling Services.

Case plans are individualized and are tailored to meet the specificneeds of each client. Following stabilization as needed, clientsmay engage in individual counselling and/or a three-weekoutpatient group rehabilitation program which is followed by asix-month aftercare program. The group program includes

“Government will expandresources for treatment ofproblem gambling.”


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psycho-educational sessions on shame, managing cravings,lifestyle changes, stress management, the impact of addiction onfamilies, cognitive distortions and self-defeating beliefs.

The findings of the detailed follow-up study by Professor Doironin 2006 are not directly comparable to those of the 1999 studysince different categories and methodologies were used.Generally, however, the study indicated that rates of problemgambling had remained relatively stable, and were similar tothose found in other provinces. Less than 1% of adult Islandershad a gambling problem; 0.6% were at moderate risk ofdeveloping a problem; and 1.2% had a low risk of developing aproblem. As well, the study found significantly higher rates ofmental health and substance use issues among problem gamblers,indicating a need for responsive, multi-faceted services.

Actions

(A) A full-time gambling addiction specialist position will beestablished at PEI Addiction Services.

The full-time gambling addictions specialist will provide publiceducation and raise awareness about problem gambling.Recognizing that individuals often suffer from dual or multipleaddictions, the addictions specialist will also work closely withaddiction staff throughout the province to build their awarenessof the signs of problem gaming in their clients. As well, he or shewill liaise with other addictions staff across PEI to developcomprehensive treatment plans for those in need. The specialistwill also work with responsible gaming information sites toupdate materials and supply more when needed, and will providematerials to physicians and psychologists.

(B) A 24-hour problem gambling hotline will be established.

Resources will also be invested in a 24-hour help line for problemgamblers. In his 2006 study, Doiron found that problem gamblerswere significantly more likely than average to engage in suicidalthoughts and behaviours. He noted, “It is important that peoplewho experience gambling problems have access to supports intimes of crisis when suicidal ideation and behaviours are most

“Resources will also beinvested in a 24-hour helpl i n e f o r p r o b l e mgamblers.”

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Ensure Integrity and Fairness

likely to occur. Twenty-four hour support (e.g., via telephone)provides a measure of support in time of crisis.”

The establishment of such a hotline will ensure timely access tohelp, and appropriate information and support to meet the needsof the person seeking assistance.

(C) A group information program will be established to helpat-risk gamers.

Education plays a vital role in reducing problem gambling. Assuch, a new program will be developed to offer informationsessions to at-risk gamblers. This program will include in-depthinformation about the randomness of VLT play, as well asdiscussing alternative problem-solving and coping skills.


Within six months:

• The group information session will be developed.


• The gaming addictions specialist position will be filled.

• The 24-hour telephone support line for problem gamblerswill be established.

• The group information session will be implemented.

Issue

The public needs to have complete trust in the integrity of thegaming sector. They must have assurance that every gamingparticipant has a fair and equal chance to win, and they must feelthat regulations reflect Island values.


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Strategic Direction

Government will enhance, update, and strengthen the regulatoryenvironment for the gaming industry in Prince Edward Island toreflect best practices, to keep player protection and industryintegrity at the forefront, and to continue to reflect the values ofIslanders.

Background

In the fall of 2006, media reports in Ontario raised concerns abouthigher than expected levels of retailer wins on lotteries. Thesereports led to scrutiny and action by gaming providers acrossCanada. In the Atlantic Region, KPMG was contracted to providean independent external review of the integrity of the gamingoperations conducted by the Atlantic Lottery Corporation.

KPMG’s report was released in May 2007 with 23recommendations to strengthen and ensure the integrity ofgaming operations. Since the report, the Atlantic LotteryCorporation has invested over $5 million in additional measuresto protect players and ensure the integrity of gaming, including:

• Holders of tickets other than Breakopen tickets must signtheir tickets prior to validation by the retailer.

• Retailers must immediately return all winning and non-winning tickets and applicable validation slips to ticketholders.

• All retailers now have ticket checkers, devices whichallow verification by the ticket holder.

• Forward-facing LED screens were installed at manyretailers, showing the ticket holder any prize won withinthe retailer’s limits or indicating a larger price forconfirmation with ALC.

This strategy will build on those measures with additional actionto secure the integrity and fairness of gaming and ensure thatIslanders are protected.

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Actions

(A) Regulations will be strengthened to provide increasedoversight of all gaming activities in Prince EdwardIsland.

The Prince Edward Island Lotteries Commission will strengthenthe regulatory framework that provides oversight on all gamingwithin Prince Edward Island, including the Atlantic LotteryCorporation.

Government will ensure the applicable recommendations fromthe KPMG Report are implemented by the Atlantic LotteryCorporation.

(B) The current regulatory framework will be updated toindustry best practices.

An industry review of the regulatory environments across Canadawill be completed to update Prince Edward Island’s regulationsto meet the best practices for regulation, within the recommendedframework. This will ensure Prince Edward Island’s regulatoryenvironment is as robust as any in Canada.

(C) Additional resources will be provided to the PrinceEdward Island Lotteries Commission to strengthen itscapacity to oversee gaming on Prince Edward Island.

The PEI Lotteries Commission will be provided resources toestablish and enforce an enhanced regulatory framework.

Lead Organizations

The PEI Lotteries Commission will develop and implement a newregulatory framework for Prince Edward Island.

Government will provide resources to the PEI LotteriesCommission to enable it to strengthen its regulatory frameworkand activities.

“Regulations will bestrengthened to provideincreased oversight of allgaming activities inPrince Edward Island.”


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Maximize Social Benefits of Revenues


Within six months:

• An updated structure for the Lotteries Commission willbe completed.

• An industry review of the regulatory environment inCanada and recommendations on best practices will becompleted.


• The new regulatory framework will be finalized andimplemented.

Issue

Gaming revenues represent a substantial resource which must beallocated as effectively as possible to support the socialdevelopment and well-being of Islanders and Island communities.

Strategic Direction

The Prince Edward Island Government will develop a strategy toallocate all lottery revenues to good works in Prince EdwardIsland.

Background

Prince Edward Island’s reliance on gaming revenues is the lowestin Canada, at 1.4% compared to a national average of 2.4% in2006-07. That year, government-operated gaming revenue (afterprizes but before expenses) in P.E.I. was $378 per adult Islander,compared to a national average of $543 and a high of $860 inAlberta. Furthermore, reliance on gaming revenues is declining,dropping from 1.9% in PEI and 3% nationally in 2002-03.

“The Prince EdwardIsland Government willdevelop a strategy toallocate all lotteryrevenues to good works inPrince Edward Island.”

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While Government’s dependence on gaming revenues iscomparatively low, there can be no question that those revenueshave provided valued resources over the years to support publicgood works in Prince Edward Island. During its first threedecades, from its founding in 1976 to 2006-07, the AtlanticLottery Corporation returned almost $250 million to the Provinceof PEI. Currently, over one-third of ALC gross revenues are paidto the four provincial shareholders. In PEI, in 2007-08, thisamounted to over $15.4 million in 2007-08.

Income obtained by the Government from gaming will beallocated by the Lotteries Commission to good works throughoutPrince Edward Island. This practice of designating lotteryrevenues for various causes is in place at a large number oflotteries throughout North America. At the current time, the 2009Canada Games offer an excellent opportunity to support sport, thecommunity and health promotion in general.

Actions

(A) The existing distribution of lottery funds will bereviewed, with a goal of focusing revenues in the areas ofsport, the community and health promotion.

A clear understanding of the current distribution of revenues isrequired to ensure the future model will provide continuity inbenefits where critically needed. A review of the currentdistribution model will be conducted by the Prince Edward IslandLotteries Commission.

(B) A framework for distributing funds under the newmodel will be developed.

A new framework will be developed to distribute lottery funds ina way that maximizes their benefits. This framework will be openand transparent, responding to the wish of Islanders to know howand where lottery proceeds are directed.

“A review of the currentdistribution model will beconducted by the PrinceEdward Island LotteriesCommission.”


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Strengthen the Charitable Sector

Lead Organization

The Lotteries Commission will be responsible for developing andimplementing the new funding model for allocation of gamingrevenues in Prince Edward Island.


Within three months:

• The existing distribution of gaming funds will bereviewed.

• Core programs/elements that must be reflected in the newpolicy will be identified.

• Baseline information will be incorporated into thedevelopment of the new funding strategy.

Within six months:

• A new framework for the public distribution of gamingrevenues will be developed.

Within eight months:

• Revenues from gaming in Prince Edward Island will beallocated in the 2009-10 Budget to various good causesthrough the Prince Edward Island Lotteries Commission.

Issue

Charitable gaming represents a vital and necessary form offunding for public good works in Prince Edward Island. In recentyears these revenues are declining, creating hardship for manyvalued organizations and reducing the funds available for manyworthwhile causes.

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Strategic Direction

Government will engage all stakeholders in developing a plan torevitalize charitable gaming in Prince Edward Island and sustainthese revenues for public good.

Background

Prince Edward Island is blessed with a strong and vibrant rangeof community and volunteer organizations working to better theircommunities. Gaming represents a significant source of revenueto those organizations. In 2006-07, PEI issued over 1,000 licensesfor charitable gaming, including over 750 raffles, 28 bingolicenses, 3 casino licences, and 240 other gaming activities.While data were not available on total charitable proceeds fromthese activities, bingo net revenues alone were over $1.2 million.

These revenues, although significant, represent a decline frompast years. In consultations for this strategy, non-profit groupsexpressed strong concern about this decline and its implicationsfor their good works. Similar trends exist in other provinces, andare linked to a range of factors including competition from otherforms of entertainment and from new gaming technologies, anddeclining volunteer participation. However, evidence from otherjurisdictions also indicates that their charitable sectors have beenable to revitalize their gaming revenues through product andvenue enhancements.

To explore how those benefits might be attained for the Island’scharitable organizations, the PEI Lotteries Commission willfacilitate a sector discussion to identify and implementopportunities to drive revenue growth in charitable returns fromgaming.

“Government will engageall stakeholders indeveloping a plan torevitalize charitablegaming in Prince EdwardIsland and sustain theserevenues for publicgood.”


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Actions

(A) Stakeholders will be engaged in the development of acharitable gaming strategy.

The PEI Lotteries Commission will engage charitable andindustry organizations in a process to develop a strategy oncharitable gaming.

(B) The feasibility of new product opportunities will beinvestigated.

New revenue sources are required to sustain and grow charitablebingo operations on Prince Edward Island. Examples exist withinthe charitable gaming industry of new product opportunities thathave helped to revitalize the sector in other jurisdictions. Thesewill be, in close consultation with the charitable sector, carefullyexamined for their relevance to PEI’s needs.

(C) Revenues from gaming will be dedicated to stem thedecline of charitable gaming revenues.

In the short-term, the Government would earmark funds to ensurereturns from charitable bingo operations remained stable.

Lead Organization

The PEI Lotteries Commission, in close consultation withstakeholders will lead development and implementation of theearmarking strategies to support charities and the stakeholderengagement process.

ALC will lead the investigation and development of any newproducts as well as any execution as identified by thestakeholders.

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Secure Economic Benefits


Within three months:

• A plan will be developed surrounding the engagement ofall stakeholders in the charitable gaming industry inPrince Edward Island.

Within six months:

• The Lotteries Commission and ALC will have met withall relevant industry stakeholders.


• A new industry-built charitable gaming strategy will bedeveloped.

Issue

Increasing competition from gaming providers outside PrinceEdward Island and on the Internet poses challenges to PEI’sgaming sector and the revenues that it generates for reinvestmentin PEI.

Strategic Direction

Government will initiate a review of the CDPEC’s brand imageand product offerings to promote a strong, responsible gamingsector in Prince Edward Island.

Background

The competitive landscape for gaming in Atlantic Canada israpidly changing. Prince Edward Island’s gaming industry facesdiverse and rapidly evolving competitive threats – not onlylocally from casinos in New Brunswick and Nova Scotia, but also


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from far-reaching, illegal Internet gaming operations. The levelof competition, from both land-based and Internet threats, issteadily increasing to a point where PEI’s economic benefits fromgaming will be impacted unless actions are taken.

Government needs to ensure the strength of Prince EdwardIsland’s existing gaming offering by embracing the products andservices required to compete on a level playing field. In additionto providing gaming alternatives to Islanders for fun andentertainment, the gaming industry is also an importantcomponent of PEI’s tourism product. A failure to meet thecompetition could prove detrimental to future visitation on theIsland. Revenues from gaming could also be lost to the provinceand to Islanders if competitiveness falters.

The continued competitiveness of the CDPEC may requireproduct and branding changes. It is necessary to explore thechanging gaming marketplace and to adapt to new challenges andopportunities with a plan for future branding and new productofferings, consistent with the Government’s commitment toresponsible gaming.

Action

The CDPEC’s brand image, including marketing focus andpositioning changes, will be reviewed.

The Atlantic Lottery Corporation will provide options forGovernment’s consideration on any potential rebranding,marketing focus, and gaming product offerings.

Lead Organization

ALC will provide Government with any potential productimplementations at the CDPEC.

Government will review these options in the context of its strongcommitment to responsible gaming, balanced with the necessityof revenue protection on behalf of the citizens of the province.

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Conclusion


Within six months:

• ALC will provide Government with options on potentialrebranding, marketing focus and gaming productofferings.

Within nine months:

• A new marketing strategy will be developed forimplementation for the 2009 tourist season.

The Government of Prince Edward Island has recognized theneed for a clear framework to maximize the benefits and containthe risks of gaming in Prince Edward Island, founded on corethemes of integrity and social responsibility.

This strategy sets out an action plan for implementation over thenext two years. Some measures will be implementedimmediately. Others will be put in place over a longer time frameto allow the research and development needed for soundprograms and measures. To realize the benefits of the strategy,Government is committed to making decisions in a timely way.

To best serve Islanders, this strategy must be a living document,one that can adapt and respond to demand and circumstance. Tofulfill this goal, the strategy will be consistently reviewed, andupdated as needed. Government will continue to monitor,evaluate and measure the impacts of this strategy as it isimplemented, and will take action on findings.

What will remain constant is Government’s commitment tocreating a fair and level playing field inside a consistentlyresponsible environment for those who choose to participate ingaming in this province.

“To realize the benefits ofthe strategy, Governmentis committed to makingdecisions in a timelyway.”

Documents

gamingstrategy - Prince Edward Islandof the Atlantic Lottery Corporation, a Crown Corporation established and owned by the four Atlantic Provinces. The ALC operates provincial gaming