document.write(CETransPubCode("TP Provincial News")); NB Telegraph-Journal | Provincial News
As published on page A1/A8 on March 31, 2006
Lottery revenues down almost $13M
Finance minister Jeannot Volpé says smoking ban may be to blame for decrease
By Kathy Kaufield
Telegraph-Journal
FREDERICTON - New Brunswick's ban on smoking in public places is likely to blame for an almost $13-million drop in lottery revenues this year.
This week's provincial budget shows the government is projecting a $12.8-million loss in 2005-06, including both video lottery terminal and lotto ticket sales.
Finance Minister Jeannot Volpé said Thursday that final numbers for the fiscal year aren't available yet, so he doesn't know whether the drop came in VLT revenue or ticket sales. But he said it's most likely VLT revenue that's on the decline because of the province's decision in October 2004 to ban smoking in public places.
That may have prompted some VLT players to either stop plugging the machines or to take their business from the province's licensed bars and restaurants to some First Nations communities that have VLTs and allow smoking.
"Maybe there are some people just shifting (to First Nations communities). We don't know yet. We will have to assess," Mr. Volpé said.
The province has revenue sharing agreements for gaming with several First Nations communities; the majority of profits made from VLT machines on reserves stay with the reserve rather than go to the province's coffers.
Mr. Volpé said the province can't force First Nations communities to ban smoking to level the playing field because they come under federal jurisdiction.
"We are trying to discuss with them and convince or whatever but at the end of the day, they are the ones who decide," he said.
The province estimated $122.9 million in lottery revenue in 2005-06, but this week's budget showed revised projections at only $110.1 million.
The numbers mark the first significant drop in lottery revenue in years. The only other drop in recent years came in 2001 when revenues fell by $100,000.
Mr. Volpé added that some of the drop could also be attributed to recent anti-VLT public awareness campaigns.
In 2005, Saint John resident Tim Smith staged two hunger strikes in front of the legislature in a bid to raise public awareness about VLT addiction and to push the province for changes to its VLT policy.
"Maybe (the public awareness campaigns) are also part of it. We don't know exactly. We are just trying to best guess," he said.
Mr. Volpé said the province had to make adjustments in its budget to make up for the lost revenue but that's just par for the course in a $6.2-billion budget.
The minister said the province isn't sure if the lottery revenue will bounce back next year so the government decided to be prudent and budget for the lower amount in 2006-07 too.
Despite the drop in revenue, Mr. Volpé said the province made the right decision by banning smoking in public places.
He said down the road the move will save health-care dollars because the province will see fewer cases of lung cancer.
"I think it is a good investment," he said.
Darlene Doucet, spokeswoman for the Atlantic Lottery Corporation, said Thursday New Brunswick retailers noted an immediate drop in sales after the smoking ban came into effect but because the final numbers aren't in yet, she's not sure if that trend continued for the entire year.
Newfoundland bar owners reported a 20-per-cent drop in VLT revenue when that province implemented a smoking ban last year.
When ALC president and CEO Michelle Carinci appeared before a legislative committee earlier this month, she said the corporation is expecting lower profits in 2006 for the first time in 30 years.
She linked the drop to the smoking bans in New Brunswick and Newfoundland.
Friday, March 31, 2006
DID TIM SMITH PLAY A ROLE FOR REVENUES FROM VLT'S GOING DOWN????
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12 comments:
Sorry to say but it wasn't Tim. It was the smoking ban.
Yes I think it had alot to do with pointing out to the people of N.B. that these machines are only taking from us and nothing being returned plus the fact that some of those who were giving all they had to our government are now deadbroke or just dead as well as those who are now either on social assistance, out in the street or in jail because of the vlt addiction so those people can no longer put into the cash cow.
Out of curiosity I decided to ask a few of my friends who can't break away from their addiction from vlts if smoking is a factor for them and I was told that the smoking part has nothing to do with playing vlts because all you have to do is put a little red sign on your screen and step outside to smoke which in all reality gives you a moment to try and break away and go home.
So based on this I agree that those who are protesting the ills of these machines are in fact having an effect on pointing out this province's addiction to gambling revenues through as it is labled "exploitation" by our own representatives.
Tim has done a very good job on the issue and he is a factor in the reduction of revenues as well as the media who have been very good to him in helping with his message.
Bravo tim good job don't give up the fight.
When they clean up the harbor down there maybe Saint Johners can get together and dump those pieces of junk into the harbor too and do a double clean up on Mr.Lord's weakness to care about the less fortunite of New Brunswick.
Probably a little bit of everything comes into it. The story says that they don't yet know whether its from ticket sales or VLT's, so it's pointless to talk about reasons, when we don't yet know the details. I doubt that smoking bans have an effect on lotto ticket sales.
However, you can also look at online gambling. Here you can gamble with your credit card or bank account in the comfort of your home, the increase in 'texas hold em' parties has also become an issue. So combine all the factors and you probably get a good clue. The only good news is that reserves benefit from no smoking elsewhere. If you want to go into a gambling casino on a reserve then you take the risk of second hand smoke, just like a smoker does. If you don't want to be around smoke-don't go.
good point about poker. it's huuuuuuge!!! are younger people playing VLT's? seems to me when I am anywhere it's people of a certain age that are playing.
Charles any activist that takes up a cause puts all they have in doing so.even you can attest to that.
so on that note of course Tmi Smith had an effect on the vlt revenues it would be obsurd to think any different.
The sad day here is when you have to listen to your own elected officials play with peoples lives and use them as dollar signs and nothing else and to top it off with the ultimate insult to the people of this province by telling them that standing up for what they believe is a major injustice by our own government has no effect on trying to regulate this governments irresponsibility.
I have a friend that I can't convince to leave those damned things alone but at least Mr.Volpe and friends have made it easy to vote in the next election by showing myself and my family where he stands when it comes to doing anything to help with this issue other than to keep on defending the almighty dollar over someone's health and life.
good post Charlie, do you think tanker malley, being your friend and all, will take the opertunity to weigh in on this one?
I worked in the bar industry for years and the smoking ban is the reason the VLT play is down. They went down almost up to 50 % at that time!
the comment above must live in a different province because I personally know about a dozen people that play those goofy things and no smoking hasn't slowed them down at all.
I keep praying they will all be put in one big pile and blown to smithereens never to be talked about again.
They are pure evil and our cities don't get anything but death and distruction as the end result.
I used to like going to a lounge or smaller bar to unwind and enjoy a pleasant atmisphere but I don't go anymore just because I can no longer watch people come in and go to the back wall and put themselves through pure hell everyday young and old alike.
As far as I can tell the bars are loosing good business for that reason.
Nobody wants to go out to their local bar,pub or lounge to relax only to watch this type or thing take place for a few dollars a year.
It's too bad that most bar owners have chosen to look the other way while so many potential customers only visit long enough to throw every penny they own in those vlts.
I guess good healthy compatition has gone down the drain.
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