Casino, lottery business down
NHL lockout, U.S. competition cited
High Canadian dollar has impact
ROBERT BENZIE AND CAROLINE MALLAN
QUEEN'S PARK BUREAU
The lockout of NHL players, a stronger Canadian dollar and increased competition from U.S. border casinos will cost the Ontario economy more than $100 million this year.
In an economic statement released just two days after Premier Dalton McGuinty admitted the province was hooked on gambling revenues, Finance Minister Greg Sorbara's fall fiscal review points out that lady luck may not be smiling on Ontario.
"Changes to the revenue forecast this quarter ... (include) Ontario Lottery and Gaming Corp. (OLGC) net income decreasing by $102 million largely due to lower earnings from border casinos," his report says.
"Business at border casinos continues to be adversely affected by the decreasing value of the U.S. dollar and perceived border-crossing slowdowns," it continues.
"Lower Pro-Line lottery profits attributable to the National Hockey League labour dispute also lowered the OLGC net income outlook."
While Sorbara did not specifically mention gaming in his speech to the Legislature, he noted that the Canadian dollar's strength against a weakening U.S. greenback has a wide-ranging impact.
"Our dollar has reached a 12-year high in October and, indeed, closed today at over 83 cents U.S. That's good for consumers who are buying imported goods or who travel south for a winter holiday, but it's tough on exporters," Sorbara said.
Also unmentioned was the NHL lockout, which in Ontario has left off ice the Toronto Maple Leafs and the Ottawa Senators.
Aside from lost tax revenues that would have been generated at games at the Air Canada Centre and the Corel Centre, the OLGC has to contend with no Pro-Line gambling on the National Hockey League.
On the casino side, U.S.-based gamblers now can risk their money at establishments in New York and Michigan instead of having to endure lengthy waits at border crossings to go to Niagara Falls, Windsor and Rama.
Despite the tax-free status of casino winnings that have always given a competitive edge to gaming houses in Canada, security concerns and federal labour disputes have slowed the borders to the point of frustration for many gamblers.
Earlier this week, McGuinty surprised many with his candour when he said the provincial treasury could not afford to lose the expected $2 billion in gambling revenue in this fiscal year.
"There is no doubt about it. We have come to rely on gambling revenues," the Premier said Tuesday.
"Perhaps in a better world we wouldn't, but the fact of the matter is it's here, it's here to stay."
McGuinty was reacting to a report that shows problem gamblers — 4.8 per cent of all gamblers — account for 35 per cent of the more than $4 billion that Ontario reaps each year from all forms of gaming.
Yesterday, Ontario's chief coroner, Dr. Barry McLellan, said he is noticing an increase in gambling-related suicides.
While there were just four in 1998, when coroners began to take notice, this year is on track for up to 15. "It's obviously a concern for us," McLellan said.
"Information would suggest that problem gambling or gambling addiction is a significant societal problem that's contributing to death," McLellan told CBC news.
With files from Andrew Chung
