Why has the issue of the morality of charitable gaming become topical in the Boardrooms of Charities?

In 1970, an amendment to the Criminal Code of Canada made it possible for charitable and religious organizations to conduct lottery schemes pursuant to a licence issued by the appropriate provincial authority. Proceeds raised from these lotteries must be used for a charitable or religious object of purpose.

In 1992, the Ministry of Consumer and Commercial Relations of Ontario completed a series of client consultations to change the regulatory framework governing charitable gaming. The Gaming Services Act was proclaimed in force on February 1, 1993. This new legislation regulates the commercial sector involved in the charitable gaming industry. The Act requires persons, who supply a gaming service or good to charities, such as bingo hall operators, break open ticket manufacturers, etc., to be registered.

A new order-in-Council that consolidates and updates the 5 existing Orders-in-Council was developed. This document defines the roles the Municipal Councils and the Province play in the charitable gaming industry and provides the authority for the Province and the Municipalities to license and regulate lottery events. It also outlines general terms and conditions applicable to the conduct of lotteries and provides broad policies for the administration of events.

Terms and Conditions are the set of rules a charity must follow once a licence is issued. They have been rewritten for all lottery events to reflect the changes in the legal framework. Interim terms and conditions were implemented to coincide with the proclamation of the Gaming Services Act and the passage of the Regulations. The terms and conditions were again revised when the Order-in-Council came into effect.

In just three short years, charitable gaming, in Ontario, has made tremendous inroads into thousands of Charities which now rely on this source of revenue for its programs. Programs such as Assistive Devices for adults with physical disabilities is one of the Ontario March of Dimes key items its charitable gaming proceeds go to support. Rod Blaker, CEO of M.E. Canada, stated recently in an interview, “Our organization is almost totally dependent on charitable gaming for its revenue. In just two short years we’ve grown to one hundred and eighty one chapters. Myalgic Encephalomyelitis (M.E.) was recognized by the Centre for Disease Control and Prevention in Atlanta in 1988. In 1990 it gave formal recognition to fibromyalgia, characterized by profound fatigue and musculoskeletal pain, often more painful than arthritis. In 1996, charitable gaming proceeds will help us fund our Canada-wide Awareness M.E. ’96 Program.”

Most of us can remember the origins of “Church Bingo” and how it has now exploded into creating major Bingo Halls, and Super Jackpots with Bingo seven days a week. Is charitable gaming helping society by funding needed programs, or is it creating a deeper disrespect for the moral principles that glue our social fabric together? Many Board Members of charities are asking such questions!

To look for answers we need to consider other types of Gaming that has crept into our society, which most of the public has learned to accept. In fiscal year 1993-94, the Ontario Lottery Corporation (OLC) contributed, after all expenses, $564 million to the provincial treasury. Of this $463 million went to the Ministry of Health for the operation of hospitals across Ontario. You may recall how Canadians spoke loudly in the late 1960s about how the Irish Sweepstakes were held to fund Hospitals overseas. Government listened to the people! OLC also funds the Trillium Foundation which distributes about $20 million annually. For example, the Shepherds of Good Hope in Ottawa received over 153 thousand dollars in Trillium funding to provide emergency shelters and a soup kitchen for the homeless.

Can we call charitable gaming fundraising? It’s been argued that true fundraising has as its basis the philanthropic motivation of the donor. For instance the tickets sold for a gala event to raise monies for a Hospital Project is pure fundraising. The direct appeal in a fundraising letter is also pure fundraising, although, often referred to by the public as junk mail.

Is charitable gaming creating gambling addicts?

Statistics from Alberta says that 2 per cent of its population are addicted to Gaming. How much do Albertans spend on lotteries and gaming? In 1983/84, the provincial government received $602 million in revenues from lotteries and gaming activities. By 1993/94 that figure had grown almost fourfold to $2.215 billion. The most recent projections are that Alberta’s gross revenues from lotteries and gaming will grow this year to $2.6 billion. On average each Albertan may be spending $1,427 on gambling up from an average of $382 just ten years ago.

What do you think about this issue? Is it a form of fundraising? Is it morally correct for a Charity to use the proceeds of charitable gaming to fund its programs? Has charitable gaming helped your organization?

Let us know by e-mail now.