A Canadian think tank has insisted that Alberta’s gambling profits estimated at more than CA$1.4 billion had better be used to fund a monthly benefits for the province’s financially disadvantaged residents.
In a report published earlier this week, Cardus think tank revealed that Alberta-based households with the lowest income pay 7% of the yearly earnings generated through gambling to the Government of the Canadian province, which is three times the proportion paid by the wealthiest residents of Alberta. Cardus’ report, which is called “Royally Flushed”, concluded that people at the lowest and the highest margin of society are making disproportionate payments into the province’s coffers.
The think tank’s report includes suggestions on how to use the revenue generated by the Alberta Gaming and Lottery Corporation (AGLC) for reducing poverty in the province, instead of merging it with the general tax revenue that is contributed to the local coffers.
Cardus has recommended the establishment of a gaming equality benefit that would be used to redirect the yearly gambling profits contribution to families with low incomes so that it is not mixed with the province’s general tax revenue. If the recommendation becomes reality, the contributions would be made through a special monthly support system that is pretty much the same as the social assistance system available in Alberta.
More Than 75% of AGLC 2019 Profit Generated by Slots and Video Lottery Machines
Cardus think tank further shared that profits generated by the Alberta Gaming and Lottery Corporation should be used to encourage savings, which is considered one of the most efficient ways to make sure local families do not turn to extortionate payday loans. Think tank officers have reminded that this could help low-income families in Alberta boost their savings accounts by following a model that is pretty much the same as some contributions and savings accounts.
The “Royally Flushed” report presented findings that video lottery machines and slot machines, which are considered harmful to players as they encourage them to lose control of their gambling, generated over 75% of the AGLC overall profit in 2019. According to data provided in the think tank’s report, residents of Alberta are likely to gambling services’ expenditures that are almost six times higher than they confess.
As mentioned above, Cardus also found that the revenue generated by the Alberta Gaming and Lottery Corporation is treated in similarly to general tax revenue. Gambling revenue has not been specially designated to fund community improvement projects.
According to one of the authors of the “Royally Flushed” report, Brian Dijkema, the province’s authorities made a crucial mistake last year at the time they decided to mix the proceeds generated from AGLC’s lottery, casino and slot machines with the general revenues received by the local government. Mr. Dijkema explained that the step only cemented the status of the province’s gambling system as what he described as a taxation’s regressive form, which accounted for disproportionate payments made by the richest and poorest members of society.
