Revitalization of Gambling in Ontario:

Concerns about Electronic Games

March 20, 2013

Dr. Kevin Harrigan, PhD

Gambling Research Lab, uWaterloo

Presented at Taking Flight Harm Reduction Forum, Guelph

July 2010 Ontario Government gave OLG direction to modernize :

• An expansion of charitable gaming to allow bingo halls to deliver electronic games– Bingo has declined in recent years

• A complete internet gaming platform • A comprehensive strategic review of the

lottery distribution network and land-based gaming facilities.– According to OLG, “About 88 percent of OLG land-

based gaming revenue is from slot machines”

OLG by 2017

There are some 2,300 net new lottery and gaming industry jobs and an estimated 4,000 service sector jobs; about $3 billion has been invested in private capital in Ontario; and OLG has increased Net Profit to the Province by an additional $1.3 billion annually—all while upholding responsible gambling standards.

Player Losses

• In order to realize $1.3 Billion in addition net revenue annually, I estimate that players will need to lose an additional $2.0 Billion annually.

uWaterloo Gambling Research Lab

• Mostly study slot machine games• New 3-year project studying eBingo• Today will talk about slots and eBingo• Goal of our lab is to:– Provide facts about how the games work– Conduct experiments to determine effects on the

gambler– Knowledge Translation

Sample Slot Machine Topic

• Losses Disguised as Wins / Fake Wins• >50% of all “wins” are in fact net losses• Ex: wager $1 and “win” 30 cents– A net loss of 70 cents– Celebrated by the game like a win

• Assume 600 spins per hour– ~ 160 LDWs per hour– Player is rewarded for 160 net losses

Losses Disguised as Wins: Our Research Results (Perspiration)

Knowledge Translation re Fake Wins

• CAMH Knowledge Translation website– https://www.problemgambling.ca/gambling-

help/gambling-information/about-slot-machines.aspx#false_wins

– Sample screen shot on next slide– 3 minute animation

Screen Shot from CAMH website:About Slot Machines

Audience for our Research and KT

• Other Researchers• Counsellors• Media• Advocacy groups• Regulators• Policy Makers• You

Other Slot Machine Concerns

• Near Misses• Stop Buttons• Multiple versions of the same game– Ex: 12% hold and 8% hold

• Players play multiple machines at once• Credits vs currency (no need for credits)• High denomination (up to $750 per spin)• Open 24/7

Charity Gaming Revitalization:eBingo Halls

re-branded as

Charitable Gaming Centres

New Model for NewCharitable Gaming Centres

• OLG– Previously OLG had no role in Bingo Halls– eBingo Halls upgraded and branded as OLG Charitable

Gaming Centres– OLG will conduct and manage Charitable Gaming Centres

through partnership with:• Ontario Charitable Gaming Association• Commercial Gaming Association of Ontario (i.e. the operators)

• Municipalities– Must approve the Charitable Gaming Centre

• Commercial Operators– Owns the building and manages day-to-day operations

Charitable Gaming Centres: Revenue Model

• Charities 25% • OLG 25%• Municipalities 3%• Operator 47%

A Look at What to Expect• Presently 9 Charitable Gaming Centres

– Pembroke, Penetanguishene, Sudbury, Peterborough, Barrie, Kingston, Pickering, & 2 in Windsor

– Municipal approvals are moving forward in Owen Sound, Niagara Falls, Cambridge & Toronto

– Will expand to at least 30 as approvals are completed

• Will market to new younger market– ‘Bingo halls will transform to charitable gaming centres over a period

of time to attract new players and provide an exciting charitable gaming entertainment experience’

Charitable Gaming Centres:My Observations

• Responsible Gambling brochures are available to players. • Ontario Problem Gambling Helpline # prominently displayed.• No security in the parking lot.• No security at the door.• Minimum age 18 whereas it is 19 for slots facilities in Ontario.• No indication that players could self-exclude.• I did not see any alcohol for sale or being consumed.• The hours of operation varied by bingo hall and by day of the week.

Typically the first bingo was at approximately 10am and the last bingo ended at approximately 10pm.

• The vast majority of players were over 30 years old. Average age probably 50+.

• The vast majority of players were female. Perhaps 80%.

My Observations con’t

• Live bingo with a caller and paper cards• Players could also play live bingo on terminals• About 100 terminals per hall with Player on Demand (POD) games • Players play POD on the terminals at the same time as live bingo.

– Live bingo on paper– Live bingo on the terminal– POD games on the terminal

• Must purchase paper cards at counter• Must purchase POD voucher at the same counter• Upon request, OLG provided fairly detailed odds for POD games• TapTix games introduced in December 2012• Let’s look at the games

Aztec

Treasure Island Scratch

Berri Fruiti

Old Glory

eBingo Video

IMG_1341.MOV

My Experience with Lucky Clover

• 10 Plays – 4 Cards per play– 3 Wins– 3 Losses– 4 LDWs or Fake Wins

Possible Wager

• Per Card– 25 cents– 50 cents– 75 cents– 1 dollar

• Number of cards– 1, 2, 3, 4

• Minimun 25 cents• Maximum 4 dollars

Paytable

1) Clover $2,500

2) Crazy Letter L $500

3) Cross $250

4) Small Picture Frame $100

5) Large Diamond $75

6) Crazy Letter T $50

7) Letter X $30

8) Block of 9 $25

9) Letter Y $10

10) Six Pack in Corner $5

11) Four Corners $4

12) Small Diamond $3

13) Stamp in Corner $2

14) One Line Any Way $1

15) Any 3 corners $0.25

Lucky CloverEstimated “average” Loss

• Payback is ~ 90%• Let’s assume $1 wager• Loss is 10 cents every couple seconds. Let’s say every

3 seconds• 20 plays/spins per minute • Loss per minute: $2.00

• Loss per hour: $120.00• Wagering $4/play loss/hour is $480.00

TapTixIt Looks Like a Slot Machine but it’s Not

It simply displays the results of Break Open Tickets (BOTs)

ScreenPlay Button

Hopper

Bill AcceptorVoucher Printer

TapTix Break Open Ticket Dispensers

• The screen is just a display to make showing the results of the BOTs entertaining

• It accepts paper money & displays how much you have in the machine, just like a slot machine

• It issues a voucher you need to cash in with the cashier – voucher cannot be inserted into another TapTix, yet!

• TapTix is an automatic break open ticket dispensing machine – it’s not considered a slot machine

• The machine selects an internal break open ticket and scans the bar code to determine what symbols to display on the screen

• It also displays the amount won (if any), but wins are displayed in credits, not in currency

• Can play a game about every four seconds, like a slot machine

TapTix Game: Dynamite DiamondEstimating “average” Loss

• The Hold is ~ 8% • Wager is $1• Loss is 8 cents every 4 seconds. Let’s say every 6 seconds to

be conservative• 10 plays per minute • Loss per minute: $0.80

• Loss per hour: $48.00• Loss per evening (3 hours) $144.00

Conclusion: Reducing Harm from Revitalized Gambling

• An additional $2B annually in player Losses• Reducing the harm may be difficult• One area is understanding the games– Other Researchers– Counsellors– Media– Advocacy groups– Regulators– Policy Makers– You– The public

Contact Information

• Professor Kevin Harrigan, PhD• Gambling Research Lab• University of Waterloo• https://uwaterloo.ca/gambling-research-lab/• kevinh@uwaterloo.ca• Tel: 519-888-4567x36652• Cell: 519-500-8099