1. Revitalization of Gambling in Ontario:
Concerns about Electronic Games
March 20, 2013
Dr. Kevin Harrigan, PhD
Gambling Research Lab, uWaterloo
Presented at Taking Flight Harm Reduction Forum, Guelph

2. July 2010 Ontario Government gave OLG direction
to modernize :
• An expansion of charitable gaming to allow
bingo halls to deliver electronic games
– Bingo has declined in recent years
• A complete internet gaming platform
• A comprehensive strategic review of the
lottery distribution network and land-based
gaming facilities.
– According to OLG, “About 88 percent of OLG land-
based gaming revenue is from slot machines”

3. OLG by 2017
There are some 2,300 net new lottery and
gaming industry jobs and an estimated 4,000
service sector jobs; about $3 billion has been
invested in private capital in Ontario; and OLG
has increased Net Profit to the Province by an
additional $1.3 billion annually—all while
upholding responsible gambling standards.

4. Player Losses
• In order to realize $1.3 Billion in addition net
revenue annually, I estimate that players will
need to lose an additional $2.0 Billion
annually.

5. uWaterloo Gambling Research Lab
• Mostly study slot machine games
• New 3-year project studying eBingo
• Today will talk about slots and eBingo
• Goal of our lab is to:
– Provide facts about how the games work
– Conduct experiments to determine effects on the
gambler
– Knowledge Translation

6. Sample Slot Machine Topic
• Losses Disguised as Wins / Fake Wins
• >50% of all “wins” are in fact net losses
• Ex: wager $1 and “win” 30 cents
– A net loss of 70 cents
– Celebrated by the game like a win
• Assume 600 spins per hour
– ~ 160 LDWs per hour
– Player is rewarded for 160 net losses

7. Losses Disguised as Wins:
Our Research Results (Perspiration)

8. Knowledge Translation re Fake Wins
• CAMH Knowledge Translation website
– https://www.problemgambling.ca/gambling-
help/gambling-information/about-slot-
machines.aspx#false_wins
– Sample screen shot on next slide
– 3 minute animation

9. Screen Shot from CAMH website:
About Slot Machines

10. Audience for our Research and KT
• Other Researchers
• Counsellors
• Media
• Advocacy groups
• Regulators
• Policy Makers
• You

11. Other Slot Machine Concerns
• Near Misses
• Stop Buttons
• Multiple versions of the same game
– Ex: 12% hold and 8% hold
• Players play multiple machines at once
• Credits vs currency (no need for credits)
• High denomination (up to $750 per spin)
• Open 24/7

12. Charity Gaming Revitalization:
eBingo Halls
re-branded as
Charitable Gaming Centres

14. New Model for New
Charitable Gaming Centres
• OLG
– Previously OLG had no role in Bingo Halls
– eBingo Halls upgraded and branded as OLG Charitable
Gaming Centres
– OLG will conduct and manage Charitable Gaming Centres
through partnership with:
• Ontario Charitable Gaming Association
• Commercial Gaming Association of Ontario (i.e. the operators)
• Municipalities
– Must approve the Charitable Gaming Centre
• Commercial Operators
– Owns the building and manages day-to-day operations

15. Charitable Gaming Centres:
Revenue Model
• Charities 25%
• OLG 25%
• Municipalities 3%
• Operator 47%

16. A Look at What to Expect
• Presently 9 Charitable Gaming Centres
– Pembroke, Penetanguishene, Sudbury, Peterborough, Barrie,
Kingston, Pickering, & 2 in Windsor
– Municipal approvals are moving forward in Owen Sound, Niagara
Falls, Cambridge & Toronto
– Will expand to at least 30 as approvals are completed
• Will market to new younger market
– ‘Bingo halls will transform to charitable gaming centres over a period
of time to attract new players and provide an exciting charitable
gaming entertainment experience’

17. Charitable Gaming Centres:
My Observations
• Responsible Gambling brochures are available to players.
• Ontario Problem Gambling Helpline # prominently displayed.
• No security in the parking lot.
• No security at the door.
• Minimum age 18 whereas it is 19 for slots facilities in Ontario.
• No indication that players could self-exclude.
• I did not see any alcohol for sale or being consumed.
• The hours of operation varied by bingo hall and by day of the week.
Typically the first bingo was at approximately 10am and the last
bingo ended at approximately 10pm.
• The vast majority of players were over 30 years old. Average age
probably 50+.
• The vast majority of players were female. Perhaps 80%.

18. My Observations con’t
• Live bingo with a caller and paper cards
• Players could also play live bingo on terminals
• About 100 terminals per hall with Player on Demand (POD) games
• Players play POD on the terminals at the same time as live bingo.
– Live bingo on paper
– Live bingo on the terminal
– POD games on the terminal
• Must purchase paper cards at counter
• Must purchase POD voucher at the same counter
• Upon request, OLG provided fairly detailed odds for POD games
• TapTix games introduced in December 2012
• Let’s look at the games

20. Aztec

21. Treasure Island Scratch

22. Berri Fruiti

23. Old Glory

25. eBingo Video
IMG_1341.MOV

26. My Experience with Lucky Clover
• 10 Plays – 4 Cards per play
– 3 Wins
– 3 Losses
– 4 LDWs or Fake Wins

27. Possible Wager
• Per Card
– 25 cents
– 50 cents
– 75 cents
– 1 dollar
• Number of cards
– 1, 2, 3, 4
• Minimun 25 cents
• Maximum 4 dollars

28. Paytable
1) Clover $2,500
2) Crazy Letter L $500
3) Cross $250
4) Small Picture Frame $100
5) Large Diamond $75
6) Crazy Letter T $50
7) Letter X $30
8) Block of 9 $25
9) Letter Y $10
10) Six Pack in Corner $5
11) Four Corners $4
12) Small Diamond $3
13) Stamp in Corner $2
14) One Line Any Way $1
15) Any 3 corners $0.25

29. Lucky Clover
Estimated “average” Loss
• Payback is ~ 90%
• Let’s assume $1 wager
• Loss is 10 cents every couple seconds. Let’s say every
3 seconds
• 20 plays/spins per minute
• Loss per minute: $2.00
• Loss per hour: $120.00
• Wagering $4/play loss/hour is $480.00

30. TapTix
It Looks Like a Slot Machine but it’s Not
It simply displays the results of Break Open Tickets (BOTs)

33. Play Button Screen
Voucher Printer Bill Acceptor
Hopper

34. TapTix Break Open Ticket Dispensers
• The screen is just a display to make showing the results of the BOTs
entertaining
• It accepts paper money & displays how much you have in the
machine, just like a slot machine
• It issues a voucher you need to cash in with the cashier – voucher
cannot be inserted into another TapTix, yet!
• TapTix is an automatic break open ticket dispensing machine – it’s
not considered a slot machine
• The machine selects an internal break open ticket and scans the bar
code to determine what symbols to display on the screen
• It also displays the amount won (if any), but wins are displayed in
credits, not in currency
• Can play a game about every four seconds, like a slot machine

35. TapTix Game: Dynamite Diamond
Estimating “average” Loss
• The Hold is ~ 8%
• Wager is $1
• Loss is 8 cents every 4 seconds. Let’s say every 6 seconds to
be conservative
• 10 plays per minute
• Loss per minute: $0.80
• Loss per hour: $48.00
• Loss per evening (3 hours) $144.00

36. Conclusion: Reducing Harm from
Revitalized Gambling
• An additional $2B annually in player Losses
• Reducing the harm may be difficult
• One area is understanding the games
– Other Researchers
– Counsellors
– Media
– Advocacy groups
– Regulators
– Policy Makers
– You
– The public

37. Contact Information
• Professor Kevin Harrigan, PhD
• Gambling Research Lab
• University of Waterloo
• https://uwaterloo.ca/gambling-research-lab/
• kevinh@uwaterloo.ca
• Tel: 519-888-4567x36652
• Cell: 519-500-8099