REGINA – In their first year in Saskatchewan, video lottery terminals (VLTs) have clearly cut into charity revenues.
The charities and the province are trying to mitigate the damage.
“We didn’t think it would make that much difference when they (VLTs) started,” said Barb Watson of the Assiniboia Royal Canadian Legion. The legion there runs a bingo to raise money for local sports groups.
Since last year, when VLTs were first allowed into hotels and bars, including one in Assiniboia, Watson said bingo revenues have dropped by about 30 percent. Dick Jones, of the Grenfell Legion, said the bingo there has also seen declining revenues recently, but he isn’t sure whether it’s VLTs or other bingos being held nearby that are to blame.
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Watson said she knows VLTs are the culprit. The bingo started losing money and players right when VLTs were introduced.
“You get to know the people who are bingo regulars and when they’re gone, you wonder why,” she said. She has since seen these former bingo regulars playing VLTs, a habit that has hurt not only her own bingo.
“Some people used to drive everywhere to play bingo,” she said. “They’d drive to Moose Jaw, or wherever there was a bingo in the general area, and they’re not doing that anymore. They’re playing VLTs.”
Tightening belt
The drop in bingo revenues hasn’t made the Assiniboia Legion cut support of local sports yet, but “we’re cutting it very fine to make any money this year.”
If more money doesn’t come in next year, Watson thinks the Legion will have to cut back its support.
Recently the Saskatchewan government announced it was eliminating the four percent fee it charges charities to hold bingos. This cut in fees, which will leave about $8 million in the hands of charities, is designed to help offset the losses from VLTs and other forms of gambling, gaming minister Eldon Lautermilch said.
But Watson said the fees themselves “don’t amount to a whole hill of beans,” and cutting them won’t cover the kind of losses they’ve experienced.
Popularity will drop off
Watson added he doesn’t think the VLTs will cut any deeper in bingo revenues, because “after people realize how much money they’re wasting on these things we’ll get our crowds back.”
The NDP government has expanded gambling since it came to power in 1991. It allowed VLTs into bars and hotels last year, and wants to set up Las Vegas style casinos. One casino was suggested for Saskatoon, but after a plebiscite overwhelmingly rejected it, those plans were dropped. One is still planned for Regina, but development of that has been slowed because a judge ruled the province had not consulted the public sufficiently and will not allow it to proceed until it does.
The province is appealing that decision.
Premier Roy Romanow, who has said he is against gambling personally, said he supports expanded gambling because it is a “reality”.
He said if the province is not involved in setting up casinos, Indian bands will set up their own. The White Bear Reserve, near Carlyle, established its own casino in 1993. The government sent in the RCMP to close it down. The case is still before the courts. Some Indian bands say they have a right to self government, and that only they should be allowed to decide whether to have a casino.
The Saskatchewan government maintains that deciding gaming laws is its right.
Romanow said the province has a deal now to share casino profits and jobs with Indians if one is built in Regina. But he thinks if the government does not go ahead with a casino, Indian bands will.
