Modernization of Canadian Charitable Gaming: Are Bingo Halls ‘Slots Parlours’ in Disguise? March 27, 2015 AGRI Conference Kevin Harrigan, PhD Gambling Research Lab University of Waterloo In July 2010 the Government of Ontario gave OLG new direction. OLG was asked to modernize through: • An expansion of charitable gaming to allow bingo halls to deliver electronic games • A complete internet gaming platform … • A comprehensive strategic review of the lottery distribution network and land-based gaming facilities. All … to include a commitment to socially responsible gambling—particularly age restricted access, privacy controls and maximum betting limits for the internet. New Charity Gaming Operating Model Role of OLG in New Model • OLG will conduct and manage Bingo Halls through partnership with the Ontario Charitable Gaming Association & Commercial Gaming Association of Ontario (i.e. the operators) • Bingo Halls upgraded and branded as Charitable Gaming Centres • Previously OLG had minimal role in Bingo Halls Role of Municipalities • Will now award “permits” to charities. These permits will not be “licenses” as previously granted under ss. 207(1)(b). Instead, they will focus on eligibility of charities to receive gaming funds … Role of Commercial Operators • Will work directly with the OLG. Still managing day-to-day operations (facility, games, finances, most advertising and promotion) Ontario Charitable Gaming Association … mandate … is to provide strong independent and effective advocacy on behalf of charities and non-profit organizations with respect to charitable gaming. Commercial Gaming Assoc. Ontario • Who We Are • … an Industry Association that primarily represents the interests of Commercial Operators, Suppliers and Manufacturers in the Charitable Gaming Sector… • What is Our Strategy? • Our strategy is … Engage, Partner and Deliver. Through this we look to forge a vibrant and sustainable commercial sector in Charitable Gaming. • What do we do? • We advocate on behalf of our membership… Charitable Gaming Centres: Revenue Model • • • • Charities OLG Municipalities Operator 25% 25%(cost recovery) 3% 47% Ontario 2012 Only Halls Total Bingo Prize Payout % 61 80% Sessions per hall per day 3.3 Attendance per session Wager per person per session Payout per person per session Loss per person per session 101 $67 $53 $13 • • • • Hours: 8am-4:00am, 7 days/week St Clair Promotional Video 100’s of POD terminals 49 TapTix machines St. Clair House Rules: “Dead Beat Dads” All winnings valued over $999.99 are subject to a Family Responsibility Office (FRO) search. Proper government issued identification is required to claim the prize. Charitable Gaming Centres: My Observations • • • • • • • • Responsible Gambling brochures are available to players. Ontario Problem Gambling Helpline # prominently displayed. No security in the parking. 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. – St Clair is open much longer • The vast majority of players were over 30 years old. Average age probably 50+. • The vast majority of players were female. Perhaps 80%. 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 Play 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 Old Glory Aztec Treasure Island Scratch Berri Fruiti eBingo Video My Experience with Lucky Clover • 10 Plays – 4 Cards per play – 3 Wins – 3 Losses – 4 LDWs 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 Paytable 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) Clover Crazy Letter L Cross Small Picture Frame Large Diamond Crazy Letter T Letter X Block of 9 Letter Y Six Pack in Corner Four Corners Small Diamond Stamp in Corner One Line Any Way Any 3 corners 2500 500 250 100 75 50 30 25 10 5 4 3 2 1 0.25 Lucky Clover Lucky Clover “Average” Loss • Payback is ~ 90% • Assume $1 wager per play • Loss is 10 cents every couple seconds. – Let’s say every 3 seconds • • • • 20 plays per minute Loss per minute: $2.00 Loss per hour: $120.00 Wagering $4/play loss per hour is $480.00 TapTix It Looks Like a Slot Machine but it’s Not It simply displays the results of Break Open Tickets (BOTs) Play Button Voucher Printer Hopper Screen Bill Acceptor Video - TapTix • Animation of TapTix TapTix Break Open Ticket Dispensers • TapTix is an automatic break open ticket dispensing machine – it’s not considered a slot machine • It accepts paper money & displays how much you have in the machine, just like a slot machine • It issues a voucher (ticket in ticket out) • 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 • The machine is not the game – the game is a BOT • The screen is just a display to make showing the results of the BOTs entertaining 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 Wording Within Help on Taptix • Over time, the more you risk, the more you lose. • This game involves no skill. • There is nothing you can do to influence its outcome. How Will This Impact the Public? • An additional $1.3billion/year has to come from somewhere • More gambling opportunities • New gambling technologies • New games • New channels for distribution, including internet • New venues • Easier access • Need for more awareness, education & research, especially regarding new types of games that are unknown to most players Postscript re Live Bingo Live Bingo: Arrow International Bingo Card Permutations • One strategy is to produce bingo cards that bring more players close to a bingo. “Many of the bingo series such as Arrow's 'Player Preferred UniMax' have built-in features like this.” • “… some card series are designed to significantly increase the number of calls it takes on average to win a certain game, which in turn allows games to offer larger jackpots without increasing their average pay out.” Live Bingo: Perfect Play • Perfect Play • Let’s say we create 3 cards (3-up) • Randomly – – – – – 1-15 under B on the three cards 16-30 under I on the three cards 31-45 under N on the three cards 46-60 under G on the three cards 61-75 under O on the three cards • With every number called player dabs once • A “smooth ride” Manipulating the Ordinal • Ordinal: # of called balls to win jackpot • Example Game: Full card, ordinal 54 – Win $2500 if full card in 54 numbers or less – Otherwise, win $25 for full card – Tomorrow ordinal will be 53, & jackpot $2,600 • Bingo card manufacturer can (and do) increase the average ordinal to win ! 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
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