Posted Nov 7, 2007, 3:33 PM
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N.B. to cut VLTs
Gov't to slash number of video lottery machines by one-quarter when gaming policy announced tomorrow
By Jesse Robichaud
Times & Transcript Staff
Published Wednesday November 7th, 2007
Appeared on page A1
The Liberal government will cut the number of video lottery terminals in the province by roughly a quarter when its responsible gaming policy is released tomorrow.
On top of cutting the number of video lottery terminals (VLTs) from 2,660 to 2,000, Finance Minister Victor Boudreau announced yesterday that the province would place a moratorium on installing new video lottery terminals (VLTs) effective tomorrow.
The moratorium would run for one year until the policy, which will limit the number of locations where VLTs can be accessed, is up and running throughout the province.
Boudreau said the plan for video gambling strikes a balance between the need to curb problem gambling while, at the same time, retaining most of the $135 million the VLTs currently pump into government coffers.
"As we all know various jurisdictions rely on the revenue that comes from these machines," said Boudreau. "We also know that the video lottery machines are probably the most addictive ones."
Boudreau was short on details when speaking with reporters, and did not say whether machines located in potential casino or racino projects would count toward the cap of 2000 machines.
He refused to discuss whether the province would allow casinos in the province yesterday, but did say bars and restaurants would not be shut out of the video lottery business.
However, in a letter printed to the province's daily papers yesterday, Boudreau did suggest that destination gaming could be a means by which the gambling policy could reenergize the province's tourism industry.
Yesterday Boudreau told reporters tourism will be one of the key industries if the province hopes to reach economic independence.
"We have seen it in the past that it has brought huge dollars to the province but, over the past few years, we have seen that dwindle," he said. "So the whole tourism side of things was looked at very carefully when we were preparing this policy."
Interim Conservative leader Jeannot Volpé said Boudreau was simply throwing up some last-minute trial balloons to avoid political embarrassment tomorrow.
"There are some people against even one VLT machine in this province. There are some business interests that want to see more," he said.
Volpé said he believes fewer locations where the public can access VLTs will help the government offer better services for those faced with gambling addiction issues.
"I have seen some good friends lose everything they have, so I am not a great supporter of casinos and racinos," he said. "But I am for free choice, and people should be smart enough to decide what they want to do with their money."
Volpé noted that Saint John could run into trouble with its cruise ship traffic if it creates a racino or casino project in the city. He says cruise ship operators, who operate their own casinos on their ships, might simply decide to skip the city in order to avoid the competition.
Daniel Allain, general manager of Downtown Moncton Inc., says Moncton has proven itself the perfect fit for a downtown casino project.
He says the impact of a destination gaming centre on the city would be huge.
"This policy will certainly have ramifications on the tourism end, but certainly under the hospitality and the food industry, as well."
Allain said his membership came out overwhelmingly in support of a casino as a part of a downtown convention centre project in 2002, but there has not been a formal poll of members' opinions since then.
Hugh Borlafe, owner of Dooly's lounge and Au Bayou restaurant in Shediac says removing VLTs from small- and medium-sized bars would force many out of business immediately.
Borlafe hopes that the province will close the loophole that allows establishments to apply for several liquor licences under one roof in order to multiply the number of VLTs permitted from five to as many as 30 or 40.
"That is like almost having a casino as it is, I think that loophole should be eliminated," he said.
Like other bar owners contacted, Borlafe was reserving judgment until he hears just how the province intends to reduce the number of VLT machines.
In his letter to provincial papers, Boudreau said the gambling policy will protect the interests of local charities that rely on bingos and draws as fundraisers.
That comes as welcome news to Chuck Steeves, president of the Moncton Rotary Club. His organization holds an annual draw for luxury cars, and has been considering adding a bingo to its fundraising strategy.
"We don't know where they're gong on this, but if they make casinos and they say bingo is outlawed there are going to be a lot of people upset," he said.
Steeves said the commitments made by service groups to local initiatives would suffer from any negative interference.
"I can't imagine they will stop us from raising money to help Headstart, or the YMCA, or the Youth Quest centre for disadvantaged youths," he said.
"I can't imagine because there are no funds for that stuff. Our funds from service clubs are the only ones helping do those things."
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