Opinion

Why BC Liberals Love Gambling

You need only follow the money -- and the players.

By Bill Tieleman, 27 Jul 2010, TheTyee.ca

Gordon Campbell giving a thumbs-up

Gordon Campbell once opposed gambling growth.

Related

"A B.C. Liberal government will stop the expansion of gambling that has increased gambling addiction and put new strains on families." -- B.C. Liberals New Era promise, 2001

Hope you didn't bet on that one!

But why has the B.C. Liberal Party done a complete 180-degree turn from strongly fighting gambling when in opposition to presiding over a massive expansion of gaming?

Why did the B.C. Lottery Corporation introduce its PlayNow.com addictive online gambling site -- which immediately crashed -- in the same week we learn it was fined $670,000 by federal financial regulators for 1,020 violations of the Proceeds of Crime and Terrorist Financing Act on casino transactions over $10,000?

And why won't minister responsible Rich Coleman fire Michael Graydon, the $383,000 a year CEO of the B.C. Lottery Corporation?

Simple -- follow the money. And the lobbyists.

This government has a gambling addiction second to none -- it cannot stay away from the blackjack tables and slot machines because it desperately needs the money just to pay off its bad debts -- B.C.'s massive $1.8 billion deficit.

Preach abstinence, bet the house?

When it comes to gambling, Premier Gordon Campbell neither knows his limit nor plays within it -- he needs to apply for "problem gambler" status so he'll be banned at the casino doors.

Campbell preached like an evangelical revival-tent pastor against gambling when the New Democratic Party was in office -- praying for an end to this scourge on humanity.

But once in power, Campbell became a sinner, expanding all forms of gambling in order to increase net government revenue by 265 per cent -- from $414 million in 2001 to more than $1.1 billion today.

Meanwhile, who is the top lobbyist for Great Canadian Gaming Corporation, the large gambling company that runs several B.C. casinos and horseracing tracks as well as other operations across the country?

Who is the lobbyist with an undertaking from Great Canadian that started in August 2005 and continues through until April 2013?

Why it's Patrick Kinsella, the B.C. Liberal Party's former election campaign chair and co-chair in the 2001 and 2005 provincial votes, the most influential backroom guy in the business and a man who has donated more than $77,000M either through his Progressive Holdings or Progressive Strategies businesses to the party since 2005.

Casino makes things 'cosier'

Kinsella -- also a well-known horse owner with entries running at Hastings Racecourse nearly every weekend -- summarizes his business on the B.C. Lobbyists registry as: "Casino operations in partnership with B.C. Lotteries Corporation."

Just to keep things even cosier with the provincial government, who did Great Canadian hire in May to become senior vice-president of operations? Why Vic Poleschuk -- the former CEO of the B.C. Lottery Corporation, who was terminated with $603,000 severance after a report from B.C. Ombudsman Kim Carter found a "lack of scrutiny for the 99 per cent of the winning [lottery] tickets and 80 per cent of the prize money paid out for wins under $10,000."

And who did Public Eye Online discover was scheduled to meet Poleschuck repeatedly in 2006 and 2007? Yes, lobbyist Patrick Kinsella.

'Whacked' by money-laundering guardian

The only bad bet the B.C. Liberals made was to wager against the Financial Transactions and Reports Analysis Centre of Canada, the federal regulator that guards against money laundering.

And the B.C. Lottery Corporation lost badly. It was fined $670,000 for violating the reporting rules 1,020 times -- but kept it secret until CKNW's Brett Mineer got the scoop.

It turns out the B.C. Lottery Corporation was also the only provincial gambling authority to be whacked by FINTRAC.

While Graydon calls them "administrative" breaches, FINTRAC wasn't impressed.

FINTRAC says 20 per cent of all money-laundering and terrorist-financing cases in Canada in 2008-2009 involved casinos, where criminals and bad guys pay cash to buy chips and then cash in for a legitimate casino cheque after minimal play.

You can see just how seriously the B.C. Lottery Corporation felt about the need to prevent money laundering here -- because last year it increased the maximum weekly online gambling limit from $120 to a massive $9,999 -- just one dollar short of FINTRAC's reportable minimum $10,000.

PlayNow adds to losing streak

Then there's the PlayNow.com fiasco -- the new online gambling site B.C. Lottery Corporation aimed at making $100 million a year from that crashed shortly after it was launched.

The B.C. Lottery Corporation initially claimed it was overloaded with so many happy gamblers that the system couldn't handle it -- but five full days later the truth came out.

PlayNow.com suffered 134 "data crossovers" that meant players could see other players' personal financial data online -- and even make bets with their money.

All in all, a disastrous record for the luckless B.C. Liberals.

And let's be clear -- I'm not opposed to gambling.

I've even bet and won money placing wagers on Kinsella's own horses at Hastings Racecourse, while subsidizing government revenues through buying lottery tickets.

But I am opposed to rank hypocrisy and gross incompetence, something that is always a sure bet with this government.  [Tyee]

34  Comments:

Login or register to post comments

  • mariner

    1 year ago

    CORRUPT GOVERNMENT LEADERS LIKE CAMPBELL

    Corrupt government leaders like Gordon "the liar" Campbell seem to be able to get away with almost anything these days.

    It is no surprise that the BC Liberal government - poorly lead by Campbell, has turned out to be both morally and ethically corrupt. Campbell seems proud of his dishonesty, lies, deception, no credibility and integrity - to the point where he constantly boasts about how good things are - hhhhm!!!

    I wonder what dope Campbell is smoking this week ????

    It go's beyond reason how this BC Liberal government can be so arrogant and stupid and think they can get away with it. Rich Coleman - well, what can a person say ??? Another one of those DUH! people eh !

    It leaves one almost speechless, trying to find words that adequately describe the pathetic situation BC now finds itself in - with the provincial government "aidiing and abetting money laundering" - working with criminal elements. WHo are the criminals ?

    Thanks

    JW

  • marlonbrando

    1 year ago

    Does anyone remember...

    NDP and Casinogate? - seems like the NDP attackers on the Libs have memory loss.

    Starnet? - Seems like the BC Government finally figured out what the online gambling industry learned years ago.

  • verso

    1 year ago

    ...

    "NDP and Casinogate? - seems like the NDP attackers on the Libs have memory loss."

    What's your point, the BC Liberals get a pass because of what happened to a political party a decade ago? Please. Besides, need I remind you that the premier of the day paid a heavy price for what turned out to be a mostly non-scandal. Funny that, the NDP always paid a price for their scandals (wether real or imagined). The same doesn't seem to apply to the BC Liberals.

    And since you want to bring up the past, I'll leave you with some quotes from the BC Liberals when they were opposition to the NDP government:

    Kevin Kruger:
    "Children may die as a result of gambling expansion and their blood will be on the heads of the government."

    Campbell:
    "I want to build an economy based on winners, not losers, and gambling is always based on losers."

  • G West

    1 year ago

    Casinogate????

    Give me a fucking break. Casinogate was a Gordon Campbell generated crisis about nothing (confirmed in court) which used the media and the RCMP to destroy his political opposition.

    The NDP did expand gambling - which is quite another matter and doesn't reflect well on their 'past'.

    Campbell's gambling policy and his lies are matters of the present.

    Hopefully the opposition has learned something from history - Campbell and the few supporters he (apparently) has left haven't learned a thing.

  • snert

    1 year ago

    Market saturation

    I suspect that this latest expansion to on-line gaming is an attempt to overcome market saturation. It gives BC a momentary edge until everyone starts to do it then reality will catch up.

    There are just so many addicted gamblers out there and the rest will get bored with one form of wasting money and just move on to the next.

  • reallife

    1 year ago

    War on gambling?

    Yes, the BC Liberals are caught being two-faced (not the first time, won't be the last). But in spite of the rants from the usual NDP apologists, government-ran gambling makes sense. Addicts will find a way to satisfy their needs. Government may as well provide a relatively safe supply rather than leave the addicts at the mercy of criminals. Don't expect the BC government to get out of the gambling business regardless which party is in power.

  • Van Isle

    1 year ago

    The Mafia is alive and well

    The Mafia is alive and well and living here in BC thanks to the Liberals. Hmm, I wonder how they do their money-laundering? Oh, it's called legalized gambling!! Also, just wondering how much of this last real estate boom that we had, had dirty money in it??

  • stver

    1 year ago

    Gambling

    Gambling revenue is perfect for a corrupt government such as the one we have in B.C.
    They have reduced income taxes, which has been a massive benefit to Liberal supporters, they have implemented regressive sales taxes such as the HST and the Carbon Tax (the revenue from which went back to furhter reduce income taxes) and they have massively expanded gambling. Gambling revenue comes from lower and lower/ middle income people. It's a tax on the less well off - not your typical Liberal voter.
    Do you see any casinos in West Vancouver, North Vancouver, Shaughnessy, the West side of Vancouver, White Rock or Oak Bay? No. Gambling is not for them. It's for those who are battling for a way out, except that it digs them further and further into a hole.
    The B.C.Liberals are not just hypocrites. They are a corrupt government that is currying the favour of those with resources at the expense of those at the bottom end of the income scale.

  • DPL

    1 year ago

    A guy who put himself on a

    A guy who put himself on a list to be excluded from gambling, still managed to show up at casino's and win the odd 500 bucks, and got the money. Then he won a much bigger pot and suddenly he couldn't collect it. Chubby Coleman said we may miss a few of the problem guys. The court case should be interesting.

  • jim1966

    1 year ago

    Is Anyone Really Surprised By Any Of This?

    I am not surprised at all. Sadly our government does not care about the people it is supposed to govern. That's the bottom line. I am not opposed to Gambling and it's a luxury and entertainment and nothing more. Once again another debacle from the BC Liberals. Mismangement, arrogance and complete denial or ignorance is really the power behind this throne. It is clear that this government is no longer capable or mature enough to govern this province. The evidence is clear. Mr Campbell and Co do not deserve the job any longer. Recall is fast approaching and by now even some of the backbenchers know that they're days are numbered. Regardless of the outcome these goons have to go.

  • verso

    1 year ago

    ...

    "But in spite of the rants from the usual NDP apologists, government-ran gambling makes sense."

    I think you will find the "rants" are more to do with calling the BC Liberals out on their hypocrisy over their well documented position on gambling before forming government. Not to mention the disastrous way they've handled the file to date... from the playnow website fiasco to the FINTRAC cover ups.

    "Don't expect the BC government to get out of the gambling business regardless which party is in power."

    I don't recall anyone in the NDP calling for a ban on gambeling - in fact, that sounds just like the BC Liberals would have said in opposition.

  • warbler

    1 year ago

    Hypocrisy strengthened by data

    The Campbell government's utter hypocrisy on this issue is further underscored by the growing body of available scientific data on the addictive nature of online gambling, as well as casino gambling, which has become increasingly overrun by slots and rapid-fire computerized games.

    Gambling today is not what it was 20 years ago. In BC, it's more accessible, more plentiful and with PlayNow it exists, officially, in new mediums (online). All of this is being pushed by governments (not just the BC government, it should be noted) with wilful disregard for the research that has long warned that online gambling truly is the "crack-cocaine" equivalent of gaming.

    Shame on this government.

  • Skywalker

    1 year ago

    stver

    Every once in a while in these posts someone cuts through all the usual bullcrap and nails it with an explanation of how this is connected to everything else, the bigger picture if you like. You did just that. Well done!

  • Frank

    1 year ago

    marlonbrando

    Obviously your grasp of history could be better.

    Please explain why it is that the BC Liberals should be given a pass on the charge of turning a blind eye to money-laundering because Glen Clark's neighbour leant a hand building his deck?

    It'll be interesting reading.

  • Kam Lee

    1 year ago

    Gordo, lies, corruption

    A wise soul once said...
    What is the difference between organized crime and the lieberals?
    Answer: The organized crime is at least organized.

    I have been in a casino and have witnessed money laundering. He was a very nervous fellow for sure. He had many money receipts in his possession, and he brought them out one at a time. He played each one, a little bit, then he cashed out. I reported his activity to the security. I do not know what happened if anything to that report. [OFFENSIVE COMMENT REMOVED. -MODERATOR.]

  • offended

    1 year ago

    Wasn't Patrick Kinsella

    recently seen at a local restaurant in South Surrey having dinner with a government person?

  • reallife

    1 year ago

    More taxes?

    I presume that all the posters against government control of gambling are willing to pay more taxes to make up the shortfall. (You do pay taxes?)

  • Frank

    1 year ago

    reallife

    And I presume that you are no doubt also in support of government controlled distribution of hard drugs, government mandated child prostitution, becoming the toxic waste dump of the world and selling arms to any terrorist in need I guess.

    Anything to save a buck in taxes eh? Assuming you pay taxes.

  • Bailey

    1 year ago

    Death and taxes

    The first thing the BC Liberals did on getting elected was to reduce taxes in BC by around $3,000,000,000 a year. The catch was that it only applied to people who made more than $250,000.

    This resulted in a lot of merry laughter at the Vancouver Club, and public remarks about "Christmas in July". It also resulted in the latest round of cuts. Cuts to health, to housing, to disability services, elder services, childrens services, and so forth.

    When it was pointed out that this policy would result in inevitable deaths, they virtually closed down the coroners office, and opened a warehouse where was found some years later, hundreds of questionable death records for said children.

    By sheer co-incidence, three billion dollars a year has been pretty much the average deficit these deleted expletives have been running.

    So, when reallife above asks so archly whether we

    "posters against government control of gambling are willing to pay more taxes to make up the shortfall. (You do pay taxes?)"

    I must assume he is speaking to the beneficiaries of all this "policy". He couldn't possibly mean anybody else, we all still pay OUR taxes.

  • zalm

    1 year ago

    Coleman gives away the store

    My favourite quote from Richie Rich is one that I will bring back to haunt him and his ilk every chance I get.

    VICTORIA — B.C.’s minister responsible for gambling jumped to the defence of the B.C. Lottery Corp. and its president Wednesday, saying the Crown corporation has exceeded industry standards in dealing with a privacy breach at its online gambling site, PlayNow.com.

    “Other companies would just put a patch on and continue to run and fix the problem as they go,” said Minister of Housing and Social Development Rich Coleman. “Because they’re a Crown corporation, and they’re held to a higher standard, they shut down.”

    http://www.vancouversun.com/news/Rich+Coleman+backs+BCLC+gambling+website+despite+privacy+breach/3306931/story.html#ixzz0uwxd3Iti

    So we can now look forward to repatriating our medical records from Accenture "because a Crown corporation is held to a higher standard" so they will take better care of our records.

    We can count on ICBC to continue to supply our car insurance at discount rates to the broad majority of people, rather than cherry-picking the good drivers as private insurers are wont to do.

    And we can count on getting BC Rail back for ourselves because they serve shippers and other customers "to a higher standard" instead of a private company like CN that would "just put a patch on it."

    Bwaaaaa-hahahahahahaaaaa! Well I'm not holding my breath, but it'll be lots of fun to throw this in Coleman's face every few days.

    Coleman's, and any other Fiberal supporter who hasn't the wits to figure out the pain in between his shoulderblades means he's just been hung out to dry....

  • crankypants

    1 year ago

    Playnow

    Let's see. We have Coleman and Graydon being less than forthright about why the Playnow site went down, from too high a traffic load to a software issue, and on today's news it was stated that there was a server malfunction.

    With all the misinformation we have been fed by these two, how can we believe that the games they are offering are on the level. Who is entrusted to verify that the players are getting a fair shake. I assume that there is some government agency that polices the bricks and mortar casinos, but these are privately owned. Who keeps a government run virtual casino in line?

    I like to gamble, but wouldn't even think of rolling their dice. I'll be quite happy spending my money in Las Vegas every once in a while.

  • Bailey

    1 year ago

    Virtuality

    I have the kind of mind that just naturally wants to figure out where the magician was really keeping all those pigeons, and where the lady's legs were while the saw was cutting the box in two.

    For example, I never buy scratch and sniff tickets because they never tell who they gave the winning tickets to. They just pretend they don't know where the winning tickets come from. The fairies bring them I suppose.

    I read an article a few months ago about how Video Lottery machines are programmed. Apparently, since there are no mechanical parts, when the machine is set up to not pay off except when it's told to, it is also set up to pretend to "almost" pay off by showing a picture of a winning combination just above or just below the picture of the losing combination the hypnotized sucker just paid for.

    This leaves the deluded mark with a subconscious impression that he might actually have a chance of coming out ahead without the express approval of whoever is running these machines.

    A false impression, it would seem. Proof of this is the recent story about the guy who unexpectedly won $45,000 and was denied his prize, because he had signed a paper agreeing never to win. No doubt one of those tricky lawyerly contracts they don't want anybody to read too closely.

    When I was a kid, there was an illicit trick called a punch card that you could find in bars sometimes. I suppose I shouldn't admit how much time I spent in bars when I was a kid, should I?

    It was a piece of cardboard drilled with a hundred holes, each stuffed with a prize amount on a slip of paper. You'd buy a hole for a buck, and push out your slip of paper, and win whatever it said. Grand prize: $50, and many smaller prizes.

    The bartender would buy the card from one salesman, then the salesman's confederate would come in soon after, punch out the grand prize, claim the fifty, and leave the bartender to then sell the chances to his customers. while carefully not telling them that the only good prize wasn't there any more.

    Sound familiar at all, at all?

  • snert

    1 year ago

    It's not only the Liberals who love on-line gambling.

    http://www.nytimes.com/2010/07/28/technology/28eurogamble.html?th&emc=th

  • realisticman

    1 year ago

    I Agree with G West on this

    Quote:
    "The NDP did expand gambling - which is quite another matter and doesn't reflect well on their 'past'."

    I suppose it's all bit like drugs. Should/can society stop people from self-destruction?

  • Skywalker

    1 year ago

    The liberals have expanding

    The liberals have expanding gaming to the levels that dwarf any expansion under the NDP. This is a nonsensical diversion from what the real issue and liberal apologists here know it. Just compare gaming revenue then and now. Stver and Bailey are dead on in their analysis. This is all about a corrupt government that has lost any moral compass if it ever had one in the first place.

  • stver

    1 year ago

    Reallife

    Reallife, you should get a life. Gambling revenue, from your point of view, is a substitute for taxation revenue. You couldn't be any furhter from the truth. Does that mean that those who gamble, usually those at the lower end of the income scale, pay taxes, while the rest of us don't. Does that mean that people in West Vancouver, North Vancouver, Shaughnessy, the west side of Vancouver, White Rock and Oak Bay, where there are no casinos, don't have to pay taxes?
    You are out of your mind my friend!!

  • realisticman

    1 year ago

    Excluding Locals

    The residents of Monte Carlo are not allowed to gamble in the casinos there. Singapore has an interesting approach.

    "Given the concerns many Singaporeans have about legalizing a casino, the government has taken several steps to ensure this does not become an epidemic problem.

    An entrance fee to the casinos will be enforced for all Singapore citizens and permanent residents (PR). The fees are tentatively $100 a day and $2,000 a year. The monies collected will go to the Singapore Totalisator Board for charitable causes. Individuals that are undergoing bankruptcies or have poor credit reports will be excluded. Spouses and family members can also request exclusion. Locals cannot use credit cards, post-dated cheques or request house credit from casinos.

    No casino advertising will be allowed in the local media.

    The Home Affairs Ministry will set up Casino Regulatory Authority and a National Wellness Centre will also be constructed to help compulsive gamblers kick the habit.

    The Ministry of Community Development, Youth and Sports is to develop public education programs on gambling addiction as well as a National Council on Gambling."

    Trouble is that here in BC there are casinos just a few miles down the road in Washington, so some of the revenue for government services would be lost to the State of Washington if the same restrictions were imposed here.

  • Frank

    1 year ago

    r'man

    I don;'t think we should worry about losing a few dollars to Las Vegas or Washington state.

    The problems gambling causes (everything from money laundering to bankruptcies) are far more expensive.

  • Bailey

    1 year ago

    Worth a shot, considering

    You all may have read recently that the Provincial Government is considering replacing the Port Mann Bridge. I have accepted the responsibility of selling off the existing bridge to any one who will agree to remove it and transport the pieces to a scrap recovery depot.

    I'm offering this contract for tender to whichever of you gullible people who would be willing to tender a substantial deposit to guarantee performance, in return for which you will then be the owners of the bridge, and authorized to sell it at a huge profit for yourself.

    Interested parties can apply by writing large cheques in my name and sending them to me at this address. The entrepreneur writing me the largest cheque will be the winning bidder, so don't be stingy.

  • jross

    1 year ago

    Not at all surprising given

    Not at all surprising given the history of our present liberal government.

  • paisley

    1 year ago

    Anybody remember

    I remember when the gambling got started and there was a lot of opposition from segments of the public. The government finally got general public approval(best scam ever) to legalize forms of gambling by claiming the profits to be made were going to be used to fund amateur sport and the arts. Well yes the government did fund those items for a while but everybody knows how much funding amateur sport and the arts are getting now.

  • ov

    1 year ago

    What about social expenses.

    There have been lots of studies that show that for every dollar earned by gambling there is a social cost of two or more dollars.

  • Camero409

    1 year ago

    This governmernt is corrupt and lacking any trust!

    They have slashed taxes to corporations, banks etc to the extent that, in order to come anywhere near to having a budget they promote gambling. If you look at other revenue sources, there is literally no money left except gambling. Our taxes, including HST are all going to the corporate elite. The LIbERalS are bankrupt morally and financially.

  • RickW

    1 year ago

    ov

    Quote:
    There have been lots of studies that show that for every dollar earned by gambling there is a social cost of two or more dollars

    An "inconvenient truth" if ever there was one. But that is true of most policies endorsed by governments. Just have to read Ed Deak contributions.......

    • The discussion for this story is closed. No more comments can be added.