Following the lead of the province of Quebec, the leaders of the province of Ontario are now examining the possibility of starting their own provincial online gaming and poker outlets.
Facing a deficit of $24.7 billion this fiscal year, the government of Ontario, headed by Premier Dalton McGuinty, is attempting to find ways to make up that shortfall. McGuinty has previously shot down the idea of increasing taxes on alcohol sales in the province, but seems to be willing to discuss the province opening up its own online gaming and poker portals. With the appointment of a new director for Ontario Lottery and Gaming in Paul Godfrey, the discussion of an online operation is moving forward.
Godfrey, who is currently the president and CEO of the National Post newspaper, has stated that he believes that the implementation of a provincial online gaming and poker outlet would benefit Ontario as a whole. It is estimated that Ontario’s citizens are responsible for approximately $1.9 billion per year in action on online gaming sites and Godfrey believes that Ontario is losing out in taxes and other revenue through not having an outlet for its citizens. “Money is going out of this province to other provinces as well as offshore sites,” Godfrey stated.
The opposition to legalization and regulation of any Ontario-based online gaming outlet is pointing out many issues that concern them. In an interview at TheStar.com, Jeff Derevensky, who heads McGill University’s International Center for Youth Gambling Problems and High Risk Behaviors, weighed the pros and cons of Ontario’s ideas. With more than 2,000 online gaming sites available worldwide, Derevensky stated, “If they can recoup a slice of it, then that (money) could be better used in government-run programs.”
The downside of opening up a provincial gaming operation is that Ontario’s youth haven’t been prepared for such activity, Derevensky notes. While the Ontario school system has instruction in other possible problematic areas such as alcohol, drug usage, and underage sex, there is nothing that deals with the potential pitfalls of online gaming. If the Ontario provincial government were to open up a government run online poker site, “It puts more young people at risk,” Derevensky said in TheStar.com article.
Ontario already has an active lottery and gaming establishment, but, according to TheStar.com, the operation has faced several problems. Revenues have been declining because of a loss of previously seen American action. Because of stricter border controls, fewer Americans are crossing to take part in Ontario’s gaming options. While Ontario Lottery and Gaming pulls in approximately $6.5 billion per year, the company has had several problems that have made the news, including lawsuits from people who say their product made them gambling addicts, according to TheStar.com.
Canadians are free to participate in online gaming and poker, but the moves by Ontario and Quebec are a grab at getting their share of the money made by these sites as well as being able to enact governmental controls on such activities. The Kahnawake Gaming Commission (KGC), located outside of Montreal, is the hub of the online gaming industry, licensing and managing many of the top sites in the world. Because the KGC is a private company under the Mohawk Nation’s control, however, provincial governments see no revenue from the venture.
Earlier this month, Quebec announced that it would be opening its own state-run online gaming and poker site later this year. Quebec’s Finance Minister Raymond Bachand has predicted that the new operation will generate $50 million in dividends within three years of activity. With its budget shortfall, this could be what Ontario is looking at as a way of cutting into the deficit without raising taxes in other areas.