Online casinos could ‘repatriate play’ from illegal sites: Compton
Allowing the Atlantic Lottery Corporation to establish an online casino for P.E.I. gamblers will create an alternative to illegal, unregulated offshore sites, while contributing to provincial tax coffers, P.E.I.’s minister of finance told a standing committee on Wednesday.
Darlene Compton faced harsh questions from MLAs during an appearance before the standing committee on health and social development. The minister spoke about cabinet’s decision to allow the Atlantic Lottery
Corporation to establish an online casino for P.E.I. gamblers.
The ALC established an online casino site in New Brunswick over the summer. This gaming site is currently geofenced, meaning P.E.I. residents cannot access it.
But P.E.I.’s cabinet has authorized the P.E.I. Lotteries Commission to develop “an enhanced digital platform” that would allow a similar site to be set up for P.E.I. gamblers.
"The intention of the platform is not to create new players. It is to repatriate play from illegal, for-profit entities in other countries back to ALC's responsible and regulated platform," Compton told the committee.
“We will be having discussions with health and wellness on possible harm mitigation measures and responsible gambling education campaign."
Compton said P.E.I. is “early in the process” of developing the online gaming platform.
Gambling in Canada is regulated and run by provincial gaming authorities. But online gaming has been eating away at bricks and mortar gaming revenues for years. The ALC estimates $100 million of revenue leaves Atlantic Canada each year due to offshore online gaming sites.
Compton also said an online casino for P.E.I. gamblers is estimated to turn a $750,000 profit in its first year alone. Forecasts estimate net profit would reach $985,000 in the second year and $1.2 million in year three.
But several opposition MLAs argued allowing a provincially sanctioned online gambling platform could boost gambling addiction in P.E.I. The same standing committee heard earlier this month that about 950 people in P.E.I. are considered to have some form of gambling problem.
“Somebody has to lose in order for P.E.I. to make money. And all of the studies show that that person is more likely to be a low-income Islander,” Opposition Green Leader Peter Bevan-Baker said. “Do you still feel that this is a responsible way for Prince Edward Island to generate revenues?”
“It’s no different than going to the corner store and purchasing lottery tickets,” Compton said in response.
“People are going to gamble. And the percentage that have a problem are going to have supports here on P.E.I. to help them.”
So far, regulations governing advertising for the new online casino have not been created.
“We’re not interested in creating brand new players. Our focus is on repatriating play,” said Jennifer MacDonald-Donovan, manager of policy, planning and regulatory affairs with the department of finance
But at least one ALC promotion has been pulled in P.E.I. Green MLA Michele Beaton revealed that one promotion involved an email sent out recently by ALC to an unknown number of individuals with dormant accounts, advertising a $20 credit to reactivate their accounts. The promotion was also advertized on Facebook.
“We have no idea how many of those people were recovering addicts. We see (ALC) advertising on Compass,” Green MLA Michele Beaton said of the ad campaign.
“That doesn’t sound responsible to me,” she said.
MacDonald-Donovan did not disagree with Beaton.
“We saw that ad, and the minister sent notice to Atlantic Lottery that that’s not to happen again,” MacDonaldDonovan said.
“They are not to try to incentivize with a cash bonus or credits to non-players.”
However, as of late Wednesday afternoon, an ad offering the $20 “bonus” for individuals setting up a new online account was still up on the Atlantic Lottery mobile website.
In an interview, MacDonald-Donovan and Compton both said part of the marketing of the P.E.I. online casino would involve communicating that it is a trusted option for gamers. Players can limit their bets and place time limits on access to the site.
“If someone is going to go play online, they’re probably going to take a site and stick to it,” MacDonald-Donovan said. “If that site is a regulated site versus a non-regulated site … that’s probably a better alternative.”