Report NEWFOUNDLAND areas in terms of social responsibility.
Since 1976 the ALC has returned more than $7.4bn in profit to the four Atlantic provinces which help fund services such as roads, hospitals or schools.
The subject of VLTs in the NL province has been a touchy one for some time. One anti gambling group wants to see the VLTs removed permanently whilst the government continues to support the machines and the income it collects from them.
The games were introduced in 1991 and were permitted only in licensed establishments with a play of 5c minimum and $2.50 bet with a maximum payout of $500 and a prize payout percentage of between 93-95 per cent. They all feature responsible gambling features such as length of play reminders, forced cash outs and a $60 deposit limit. A maximum of five terminals are permitted per site.
In 2005 the government implemented a five year VLT reduction strategy which included reducing the number of VLTs by 15 per cent, reprogramming VLTs to slow the speed of play and changing the hours of operation from 12pm-12am instead of 9am-2.30am. More funding was also allocated to treatment, research and education. This was fully implemented by 2010/11 and saw the reduction of 650 VLTs.
ALC’s Lindsay Shannon said: “This programme was about creating gaming environments that support Atlantic Lottery’s, and the government’s commitment, to responsible gaming and we’re proud of how it’s been implemented.”
At the time there were 2,645 VLTs in 593 different bars in the province. This was the highest per capita number of VLTs in any Canadian province. Regulation stated a maximum of five per site. However some site holders merely multiplied their liquor licenses and sites within the same establishment in order to increase their number of VLTs. Today there are 1,938 VLTs in the province whilst net VLT receipts were $122.7m.
Meanwhile the ALC has been operating its online gaming site since 2004 and became the first lottery in North America to sell its products online. Games such as Lotto Max and Lotto 6/49 and regional draw games are all on offer.
Two years ago in June 2010 the ALC began a process to replace the 7,000 VLTs it operates throughout Canada. The ALC plans to spend $93m to replace 5,900 of
April 2013 PAGE 36
“The [VLT] replacement
process began in September 2012 and will span a
period of two years. The new terminals will offer many of the same games allowing for a
seamless transition in our VL
programme. The technology may allow for the
introduction of new
games however the replacement
initiative is driven by the fact we have
obsolete technology that can’t be serviced.” LINDSAY
SHANNON, ALC
the 7,500 VLTs it operates in the four provinces. The ALC issued a request for proposals and the results were announced in May 2012.
Lindsay Shannon of ALC said: “Currently our terminals are almost 10 years old which is older than terminals in other jurisdictions across Canada making them obsolete as we can no longer buy parts for or service them.
“The replacement process began in September 2012 and will span a period of two years. The new terminals will offer many of the same games allowing for a seamless transition in our VL programme. The technology may allow for the introduction of new games however the replacement initiative is driven by the fact we have obsolete technology that can’t be serviced.
“The new terminals will continue to offer proven responsible gambling features
such as length of play reminders, forced cash outs and a $60 deposit limit.”
Techlink Entertainment won a contract to build 1,000 VLTs, some 17 per cent of the units, whilst Spielo will provide 1,700 new VLTs a 29 per cent share, IGT with 1,612 units and 28 per cent share and Bally with 1,576 units and 27 per cent share.
Bally signed its agreement in May this year and will provide 1,576 VLTs. The Bally cabinet is the V22/22 and will include top titles such as Quick Hit Platinum and American Original. This is the first VLT replacement contract for Bally who were not selected for the Loto Quebec and Alberta awards.
Techlink was set up in 1994 and is headquartered in Nova Scotia. The contact with ALC was signed in May 2012 for 1,000 Blast VLTs and is the largest contract in Technlink’s history and was
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