MLA Casino Review

Background

What is the Issue?

The Alberta government has appointed a 3 MLA Committee to consider aspects of the Charitable Gaming Model. Casino revenues are particularly important to organizations because of the predictability of the events, the amount of money that can be raised, and the flexibility of casino revenues in being applied to operating costs. For smaller charities, casino revenues often provide a critical funding base which is heavily relied upon.

Changes in the aspects under consideration would result in reduced casino revenue for charities in what are defined as urban areas, i.e. Calgary and Edmonton. While the MLA Committee is asking for feedback on three very specific topics, one potential outcome of the review is a fundamental change in Alberta’s Charitable Gaming Model.

Aspects Being Reviewed

Distribution of Proceeds

• The consultation questions from the government ask whether pooling should continue to be applied on a regional and quarterly basis (see below), and ask if there are suggestions for better alternatives.

• There is a significant difference in proceeds to charities from rural and urban casinos, with a current range of $18,325 to $76,109.

• Various lobby efforts have been made in the past several years to institute some sort of province-wide pooling. These efforts include resolutions presented to the Alberta Conservative Convention (2008), the Alberta Urban Municipalities Association (AUMA), and the Alberta Association of Municipal Districts and Counties (AMD&C). There have also been discussions at the Standing Committee on Public Safety and Services, and motions (non-government) made in the provincial Legislature.

• Advocates for change argue that casino proceeds should be shared more equitably among charities, with the idea that equity means identical per-capita proceeds across the province.

• Currently casino proceeds (table revenues and slot machine revenues) are pooled quarterly within the same region. These pooled proceeds are equally divided among all organizations that supported a casino during that quarter and in that region. This process ensures that organizations within the same region receive comparable revenues, in spite of variations between individual casino facilities and between weekday & weekend proceeds.

• Allocation of table revenues varies from region to region; however slot machine proceeds are distributed in a standard manner: 15% to the charity; 15% to the operator; 70% to the Alberta government (Alberta Lottery Fund).

• One position that has been promoted is to move to provincial pooling of slot machine revenues only. However, it should be noted that slot machine revenues are growing and have substantially outpaced table revenues.

• Considerations/Implications
  • Calgary organizations have seen an average decline of $30,000 revenue per casino event since 2007 (3rd quarter).
  • Any reallocation of casino revenues would further aggravate funding issues and create increased hardship on urban charities.
  • The challenge of replacement of any lost income from this source is compounded by the substantial decline in other provincial funding programs.

Wait Time

• The consultation questions from the government ask whether current boundaries should be moved and how, whether rural charities should have access to Edmonton and Calgary casinos, and ask for suggestions for better alternatives.

• The difference between waiting periods for rural charities and urban charities has been discussed for a number of years.

• Currently the range in wait times is 16 months to 33 months (the longest wait time was up to 40 months a couple of years ago).

• The principle that Alberta Gaming and Liquor Commission (AGLC) currently applies to this issue is that casino proceeds should be distributed to the community in which they were raised. In addition AGLC acknowledges that charities in Edmonton and Calgary often support a larger client base, including provincial charities. See Consultation Questions

• Proposals have been circulating for a number of years to modify or eliminate the current boundaries so that rural charities are eligible to apply for casinos in Calgary and Edmonton. These proposals suggest that the boundaries are arbitrary and cite issues of fairness and equity – particularly that rural charities should have equal access to casinos, meaning experience the same wait times as urban charities.

• Considerations/Implications
  • Any of the proposed changes in boundaries or wait times would have the effect of reducing payouts to existing organizations in the urban areas

Volunteers

• The consultation questions from government ask whether the volunteer requirements should be decreased or maintained, and ask for suggestions for better alternatives.

• Some charities have expressed concern to their MLAs about the number of volunteers that are needed to support their casino event.

• Casino operators have also been advocating for a change in the system, recommending a move to fully staffed casinos with minimal involvement of charitable organizations, as a more efficient way of operating casinos.

• A recent Volunteer Calgary poll found that:
  • Over 70% of respondents do not find the casino volunteer requirements excessive
  • Over 90% of respondents would not want the government to modify the system to reduce the volunteer requirement if proceeds would be decreased

• Considerations/Implications
  • Any substantial changes to the volunteer model represent a fundamental shift in Alberta’s Charitable Gaming Model. If casinos were fully staffed, there would be no sound rationale for charities to receive revenue from specific casinos.
  • Potential outcomes could be province-wide pooling of proceeds, or the replacement of the license model with a grant program.
  • A grant program could require more complex applications and increased administrative burden, different eligibility criteria, and could provide less flexibility in allocation of monies, potentially ruling out allocation to operating expenses.

Consultation Process

Consultation Meetings

The 3 MLA Committee is holding consultation meetings across the province with eligible charities, from October 5-15. The registration deadline for these meetings has passed.

Written Submission to the MLA Committee

There is still an opportunity to provide a written submission to the Committee. The deadline is November 20, and all organizations are permitted to submit a proposal.

You can send in your submission by one of the following methods:

Email: mlaconsult@aglc.ca

Fax: 780-447-8950

Mail: MLA Review Committee

Distribution of Casino Proceeds

50 Corriveau Ave.

St. Albert, Alberta

T8N 3T5

Updates

November 20, 2009

CCVO Sends Submission to MLA Casino Review
CCVO has provided input to the MLA Advisory Committee in the form of a written submission, as we feel many of our members will be affected by any changes made to current policies and procedures. To read our submission, click here.
For more information, please contact Laura MacKinnon, CCVO Policy Analyst, at 403-261-6655 ext 228.

October 21, 2009

CCVO issues Notice on Extended Deadline for Written Submissions
The Government of Alberta has extended the deadline for written submissions on the provinical charitable Casino Review to November 20th. For more information on the MLA Casino Review, visit CCVO's webpage on the topic.

Sept 24, 2009

CCVO Issues a Deadline Reminder Regarding the Review of the Charitable Gaming Model by the Alberta Government
CCVO encouraged eligible organizations to register for upcoming consultation meetings being held in Calgary October 14 & 15. These meetings will offer an opportunity to participate in roundtable discussions. The consultations are focused on three very specific questions related to pooling of proceeds, wait times, and volunteer recruitment. The government is seeking input from organizations that are currently licensed or slotted for a casino event. If you are one of these groups, you should have received an invitation to the meeting in the mail. Registration deadline for meetings is September 25. The MLA Committee is also accepting written submissions: Written submission deadline is October 30.

Sept 11, 2009

CCVO Issues a Policy Watch: Alberta Government Announces Review of Charitable Gaming Model
On September 10, the province announced a review of Alberta’s charitable gaming model, focused on casinos. The press release stated that the review is a response to concerns expressed by charities about the casino process, particularly wait times, pooling of proceeds, and volunteer recruitment. A three-member MLA panel will be meeting with charities across the province, starting in Grande Prairie on October 5 and ending in Calgary on October 14 & 15. The panel will accept written submissions until October 30, and their final report with recommendations will be completed by March 31, 2010. CCVO, with other sector leaders in the province, will monitor the review. We’ll be developing a submission and are asking for member and sector feedback and input. 

Related Information

See Alberta Gaming and Liquour Control (AGLC) Website

News Release and Backgrounder issued by the provincial government (includes dates for entire province)

New charity review panel puzzles MLAs, Edmonton Journal, September 11, 2009

Questions or Comments?

If you have questions or comments please contact:
Laura MacKinnon
Policy Analyst
403-261-6655 ext 228
lmackinnon@calgarycvo.org