VLT placement rakes in higher profits: critic

A well-known gambling critic says the Quebec government isn't telling the whole story on why video lottery terminals are becoming more profitable.

Government documents reveal VLTs hauled in more than $800 million last year, up 12 per cent from the year before.

Quebec Finance Minister Michel Audet says the machines brought in more money because the government is paying a lower commission to bar owners.

"Half of the increase of revenues came from this change, he says, noting the government is actually reducing the number of VLTs in the province.

He says the rest of the increase is simply inflation.

Location, location, location

But some Quebecers believe Loto-Qubec is actually targetting compulsive gamblers when placing the VLTs, and that that is the real reason revenues are up.

Sol Boxenbaum, head of a counseling firm for Montreal gamblers, says it is not true that the government made more money this year because bars were getting a smaller cut of the profits.

"That doesn't hold water because the reduction for bar owners was only four per cent," says Boxenbaum.

Many VLTs have been moved out of bars, and into racetrack facilities.

Boxenbaum says VLTs brought in $85 million extra last year because of Loto-Qubec's placement strategy.

"They always have a better chance of getting play in a hippodrome than they do in some remote bar where they're not really producing enough money for Loto-Qubec," he figures.

Boxenbaum says three out of four VLT users are addictive gamblers, and rising revenues from the machines mean players are losing more and more money.