P.E.I. Finance Minister Darlene Compton is wading into a hornet's nest with the government's plan to allow Atlantic Lottery Corporation to establish an online casino.
The line she is using to defend the idea is almost as old as time. It is essentially the same theory behind the end of prohibition and the legalization of cannabis It boils down to the fact that government regulation will ensure a safer alternative to illegal, off-shore stops on the worldwide web.
Less emphasis is put on the fact that none of those sites provide a dime to the provincial treasury as illegal operations (the same as bootleggers and dope dealers) are not usually keen on filling in tax remittal forms.
The Atlantic Lottery site is already up and running (based in New Brunswick) but access to Island residents is denied until the province agrees. Compton recently told a legislature committee the intent was not to create new gamblers but, rather, to "repatriate play from illegal, for-profit entities in other countries back to ALC's responsible and regulated platform." That's political speak for "we want our share of the tax money."
The argument does have some validity. Atlantic Lottery is owned by the four provinces in the region and puts millions of dollars back into communities by sponsoring a host of events big and small. The corporation estimates about $100 million leaves the four provinces each year through the illegal sites.
While government-sanctioned gambling has long been a reality, it is also a hot potato. It didn't take long for the argument to surface that allowing more access to gambling could lead to more problems for those with addictions. Opposition Leader Peter Bevan-Baker makes the point that it is often people who can ill afford to lose any of their income that are in the category of a problem gambler.
The finance minister is also correct when she notes gambling opportunities abound but it is only through sanctioned venues that problem gamblers can get help. Green party MLA Michele Beaton was concerned Atlantic Lotto was advertising a $20 credit on dormant accounts as a way to entice people back.
She wanted to know how many of those dormant accounts might be held by problem gamblers and suggested the ad on social media was ill-conceived.
Compton and her officials didn't disagree and slapped the fingers of Atlantic Lotto, telling them not to use credits to entice customers in the future. Compton said those playing an online Atlantic Lottery site would be able to place limits on their bets and the time spent on the site. However, online gaming requires less effort than the in-person option, where you have to physically go to a casino – now you will be able to just sit on the couch and press a few buttons.
The plan is in the very early stages and will likely generate more than its share of debate when the legislature opens later this week. The estimate is the portal would be generating a profit of $1.2 million annually by the third year of operation.
That would be guaranteed tax revenue going forward and the debate is very similar to the one surrounding the establishment of the Red Shores casino several years ago. The government of the day used essentially the same arguments and approved the project - the smart money says the online site will get the green light too.
Andy Walker is a P.E.I.-based political commentator. His column appears each week in the Journal Pioneer.