QUEBEC -- Fresh off the announcement that Loto-Quebec would be launching an online gambling option next Fall, Alain Cousineau, president and CEO of Loto-Quebec, presented the challenges facing his organization to the Sherbrooke Chamber of Commerce on Wednesday.
Last week, the Quebec Government gave Loto-Quebec authorization to offer an online gambling option to the public. Internet gambling in Canada has grown dramatically over the last decade; going from an $184 million industry in 2003 to a $675 million in 2008. By 2011, it is expected to surpass a billion dollars.
In response to this growth, Loto-Quebec announced it would offer online poker and sports betting websites in September of this year.
Cousineau, Loto-Quebec, and Quebec finance minister Raymond Bachand have taken a lot of criticism for this decision. Citing social health risks, MNA Amir Khadir (Mercier) recently called the announcement "nonsense" and fellow MNA Danielle Doyer (Matapédia) said that "Minister Bachand recognizes that there are some important social costs, but his appetite for siphoning money from our wallets seems to be stronger."
On Wednesday, Cousineau took the time to address the social concerns, saying that over the last seven years Loto-Quebec has contributed over $180 million to help combat against excessive gambling. "This makes Quebec one of the few areas in the world that devotes such a significant amount of money to this type of problem," he noted.
For Cousineau, it is better that people gamble at a trusted, state-funded, reliable website where the revenue would go directly to the province, than at one of the 2000 illegal ones that are currently available to Quebecers. "Presently, there does not exist any controls to ensure a safe gaming environment on the Internet, the gamblers are left to control themselves," he said. "There are no age limits, time limits, or budget limits, no way to prevent people from gambling excessively."
The Loto-Quebec president vowed to implement these types of controls on their sponsored sites, similar to ones that already exist in some European countries. The Loto-Quebec sites will actually be created in collaboration with provincially-supported sites in British Columbia and the Atlantic region.
Some are concerned about the limitations that exist in policing things like age restrictions and excessive use. Cousineau said that there is still much work to be done in that regard before their site is launched in September. "Before putting our site online, we will have it looked over by international experts in responsible (online) gaming," he said. "The results of this work will allow us to once again tighten our preventative measures."
Loto-Quebec is a massive moneymaker for the province. In 2008-2009, it gave $1.375 billion to the Quebec government, representing 2.2 percent of the province's budget revenue. Throughout his speech, Cousineau made sure to outline the large amount of charitable donations that his organization has given over its 40-year existence.
Government involvement in gambling is a controversial issue. For Dr. Robert Palmer, a Business professor at Bishop's University who has done extensive research for a number of gambling institutions, the discussion is an ethical one. "The question of governments getting involved in the (gaming industry) instead of allowing private businesses to run it really comes down to an ethical issue that will always be up for debate," he said in a recent article in The Record. "There are arguments for both sides."
Cousineau seems aware of the negative social impact gambling can have, and believes it is about finding the right balance. "Loto-Quebec will always try to maintain the balance between its economic mission and its social responsibility," he explained. "Even if the exercise is sometimes perilous, we will continue to work hard to find the optimal balance."
