Atlantic Lotto considers interactive TV

The Crown corporation that manages gaming in Atlantic Canada is studying how it can use interactive television as it examines new ways for gamblers to wager money.

The Atlantic Lottery Corp. recently issued a request for information looking for help to understand the new technology, which could be used to place bets with the click of a remote on everything from televised horse races to talent shows.

"Seizing the right technology solution is critical, not only for sales growth but more importantly for player attraction and engagement," the corporation's request says.

"Could Atlantic Lottery create new games and line extensions of our current products that could be specific to sporting events, reality TV shows and games that involve a degree of skill?"

A spokeswoman for Atlantic Lottery said they want to better understand what's in the marketplace, adding that the request is for research purposes only.

"It's about us doing due diligence because of the emerging trend in the technology world," Jennifer Lawlor said. "Computers and televisions are moving together and there's different offerings with both."

Nigel Turner of the Centre for Addictions and Mental Health in Toronto, who has been researching psychological risk factors associated with pathological gambling, said the new venture could bring problems.

"You can't get more maxed out, more available than gambling on the internet, your TV or your mobile phone, so that's a concern," said Turner.

"But that's weighed against, to some extent, the fact it's less intensive, exciting, thrilling to win in that context because it removes the social reinforcement."

'You don't see problems immediately' Nigel Turner, Centre for Addictions and Mental Health

Turner said problem gamblers using new media are in the minority for now, but their numbers are growing.

"There's a lag with gambling," he said. "You don't see problems immediately. They take time to develop."

Mark Griffiths, a professor of gambling studies at Nottingham-Trent University in England, shares Turner's view.

"Interactive television, like the internet, provides 24-7 access and if you're vulnerable or susceptiblewith the new media this is where I do have concerns," said Griffiths, who has done consultation work for Atlantic Lottery and the Nova Scotia Gaming Corp.

He said his recent research shows that uptake of interactive television gambling in the United Kingdom, where Sky Network Television has a dedicated gambling channel, is lowless than one per cent of those who wager.

But, like any new technology, Griffiths said it takes time to find a comfort level.

"Our children may be the first to come along and gamble for the first time in an online medium before ever having stepped into a gambling venue," he said.

He points to a Merrill Lynch study that suggests remote gambling will be worth almost $204 billion globally by 2015, half of it from interactive television.

'Don't have to accept'

Dave Wilson, the minister responsible for gaming in Nova Scotia, said the government is aware of how technology is changing the gambling business.

He said the province's gaming strategy, released earlier this year, calls for constant and ongoing evaluation.

"We take in over $100 million a year in gaming revenue so it's our role to ensure it has a lens of responsibilitythat as a province we are committed to ensuring we minimize any harmful effects," said Wilson.

"We have an interest in ALC but we don't have to accept or buy any given service."

In Newfoundland and Labrador, a government spokesman said they've been assured that Atlantic Lottery will not purchase or sign any contracts based on responses to the latest information request.

"If ALC ever reached the point of providing stakeholders with a new service to examine, we would review it closely and then make our viewpoint known at that time," Luke Joyce said in an email.

Officials with the governments of New Brunswick and Prince Edward Island did not return messages seeking comment.

Atlantic Lottery's request for information comes as it grapples with ways to reverse dropping revenues.

In its latest annual report released in July, Atlantic Lottery said it contributed $371.2 million to the provinces in 2010-2011, down about $18 million from the year before. That was despite an increase in gross revenues from lottery ticket sales.

Atlantic Lottery is owned by the four governments, which share the company's net profits annually.