Casino fears outpace impacts

October 13, 2007 Maple Ridge News

A three-year study of impacts from new Lower Mainland casinos shows a growing number of host city residents believe the harm of gambling outweighs the benefits, even though no serious increase in problem gambling was detected.The study, carried out by consultants hired by the provincial government, examined socio-economic impacts since the 2005 opening of Langley's Cascades Casino and Vancouver's Edgewater Casino, and the 2004 addition of slot machines at Fraser Downs racetrack in Surrey."The general public's attitude toward gambling is quite negative and getting more so," the report concludes, predicting a rising public backlash.The study included random phone surveys of 2,500 area residents, as well as 630 patrons at the new venues, plus interviews with casino employees, municipal reps, police, merchants and counsellors.

Of the Langley, Surrey and Vancouver residents surveyed, 61.7 per cent said in 2006 the harm of gambling outweighs its benefits, up from 54 per cent in 2004. Respondents were also assessed on a series of questions that gauged their gambling habits.Problem gambling rates rose most in Langley City over the three years – moderate problem gambling there rose from 2.0 in 2004 to 5.4 per cent in 2006, and severe problem gambling rose from 0.5 to 0.6 per cent.In contrast, the study found a slight reduction in Langley Township problem gamblers, where 2.5 per cent were rated moderate and 0.4 per cent severe (compared to 3.6 per cent moderate and 0.4 per cent severe in 2004).While Surrey's severe problem gamblers increased from 1.6 to 1.9 per cent of those surveyed in 2006 – the highest in the study – the proportion of moderate problem gamblers fell from 4.0 in 2004 to 3.3 per cent in 2006.Only the increase in Langley City is considered statistically significant.Calls from Langley residents to the province's Problem Gambling Help Line increased by 50 per cent (from 10 per month to 15) after Cascades opened in May 2005, the report shows.Overall calls in B.C. to the help line climbed steadily from 2001-2005, but fell in 2006.The number of problem gambling treatment sessions provided by counsellors to Langley and Surrey residents prior to the expansions was stable at about 10 per month early in 2004. Those climbed to peak at more than 30 per month in Langley and around 50 per month in Surrey by early 2006, before subsiding to about 25 per month in the two cities.

Derek Sturko, assistant deputy minister for B.C.'s Gaming Policy and Enforcement Branch, said the budget to combat problem gambling has risen from $4 million last year to $7 million this year and will rise again to $8 million next year."We have a pretty aggressive set of programs," he said, adding the findings "do cause us to want to put renewed resources into our efforts around problem gambling."He said the government plans to conduct a follow-up study in a few years time to track longer-term impacts.Sturko also said Victoria will conduct an independent evaluation of the self-exclusion program by which problem gamblers can have themselves voluntarily barred from casinos.The effectiveness of the program was questioned in the report. Counsellors contacted by researchers said their clients who have tried self-exclusion still find it relatively easy to get into Lower Mainland casinos.

Sturko noted local municipalities are happy with the roll out of the gambling expansions.The report found no increase in crime attributable to the casino expansions, and crime rates in Surrey and Langley Township actually dropped significantly.The study found no links to local rates of suicide or bankruptcies. Gains include about 1,000 new jobs and tens of millions of dollars in ongoing revenue for local cities and the province.But the new casinos so far have not pulled in new gambling dollars previously being spent outside the region.The vast majority of gamblers at the new sites – 97 per cent – were Lower Mainland residents.As a result, the $219 million taken in last year mostly amounts to a redistribution of money previously spent at other local casinos."The Cascades Casino resulted in a significant redirection of gambling money to Langley from other Lower Mainland venues," the report said.Recent sustained increases at Langley, Edgewater and River Rock in Richmond came at the expense of casinos in Coquitlam, Burnaby, New Westminster and Washington State, the report said.Overall, it concludes, the three new venues have "neither caused widespread economic rejuvenation, nor have they created major new social problems." Gaming expansion had more impact in Langley, where unlike Surrey and Vancouver there had never been a gambling venue previously.

Researchers say that supports a theory that most negative effects happen initially but diminish as the community adapts to the new casino."The large majority of casino revenue comes from people who gamble several times a month or more," they concluded.Of those high-frequency gamblers, 24 per cent are problem gamblers."This is an important finding when weighing the overall costs and benefits of gambling," the report advises.The 2004-05 expansions added 1,500 slot machines and 90 table games in the region. There are now 4,400 slot machines in the region, a four-fold increase since 2003.Great Canadian Casinos media and entertainment vice-president Howard Blank declined comment, saying he had not yet seen the report.The president of Decker Management, which owns three acres east of the ARTS Centre Theatre in Maple Ridge, is the lead director with the Great Canadian Gaming Corp., which has three casinos in the Lower Mainland.The District of Maple Ridge held public consultation meetings in spring 2006 to gauge support for expanding gaming in the community.Any kind of expanded gaming would have to take place in partnership with Ridge Meadows Bingo Association, to preserve $1.75 million in funding to local charities.