Gambling in Canada

Over the past few years, Canada has expanded its gaming industry to increase provincial revenues.

The industry has grown with such abandon that many critics feel the provincial and federal governments have disregarded caution because they are caught up in the web of easy profits. While this may or may not be so, the gaming industry in Canada is substantially different from that in the United States.

In 1969, the Canadian federal government legalized casino gambling; however, only the provincial governments or non-profit organizations could initiate such establishments.

The casinos were restricted to table games, but the federal government recently included video lottery terminals and slot machines as legitimate gaming devices. Each province, within the broader federal law, governs how gaming may operate within its jurisdiction.

The provincial governments regulate how many casinos there will be, whether or not they will be permanent, and how they will be licensed.

Most of the casinos are situated in Alberta, Saskatchewan, and British Columbia, but other provinces have jumped on the bandwagon.

The casinos in British Columbia and Alberta are operated by private management companies that contract with non-profit organizations that sue the casino facilities to raise funds.

These charitable organizations apply for gaming licenses which restrict their use of the casino to two days. Even under these conditions, the casinos are usually open every day of the year. The exception to this is the Calgary Stampede and the Edmonton Exhibition every summer.

During the summer, a ten-day special casino permit is issued, which allows each of the cities to operate between 170 and 200 gaming tables. In British Columbia in October of 1994, the government Services Minister announced that there would be no Las Vegas-style casinos within British Columbia.

In addition, the government is introducing 5,000 video lottery terminals into entertainment facilities for adults only.

Alberta and British Columbia treat the distribution of gaming profits differently, however. In British Columbia, the charities pay the casinos an agreed-upon fee for use of the facility; in Alberta, the provincial government receives 40 percent.

The province of Saskatchewan grants licenses to non-profit organizations that assist the farming industry, but these gambling facilities only operate on a part-time basis.

New Brunswick and several other provinces grant two-day licenses to non-profit organizations, but there are no permanent gaming facilities. Gaming must be conducted in private clubs.

The law can be changed, but that raises the question of whether or not the government can ethically change laws that advantageously affect casinos in that it has an interest.