Accountable Gambling in the Public Interest

Alberta Gaming Research Institute-April 2008Dr. Garry Smith &

Dan Rubenstein CA, MAFunded By: Ontario Problem Gambling Research

Centre--

Contents

• Accountability 101• Research Methodology• Research Findings

– There Are Attributes of Commercial Gambling Worth Noting• Compared to other Government Goods & Services

– Accountability Implications of Attributes of Commercial Gambling– There Are Accountability Gaps: Ontario Regime

• Operating and Regulatory Regime in Ontario• Observed Gaps

– Need for Model: Accountable Gambling in the Public Interest• Questions for Citizens• Need for Further Research

Accountability 101

• Definition of Accountability• Westminster Model Parliamentary Democracy:

– Ministerial Responsibility/Collective Responsibility of Cabinet

– Foundation: Enabling Legislation• Accountability Process:

– Role of Executive Branch & Legislative Assembly (Basis of Accountability Relationship)

• Ministers Render an Account• Parliament Holds Ministers to Account

• Accountability Gap: Significant Unanswered Questions in Accountability Relationship

Research Methodology• Researchable Questions: • 1. Are There Attributes of Commercial Gambling That Create Gambling

Specific Accountability Requirements and Public Expectations?• 2. Does Legislative and Policy Foundation in Ontario Provide a Reasonable

Basis to Hold A Government to Account, Given These Gambling Specific Accountability Needs?

• Scope: Enabling Legislation, Policy Framework for Ontario Lottery and Gaming Corporation (OLG) and Alcohol and Gaming Commission of Ontario (AGCO).

• Methodology:– Analysis of What Is:

• Analysis of Enabling Legislation, Policies• Structured Interviews: Regulator, Operator and Policy Makers in Ontario

– Consideration of What Could Be– Identify Accountability Gaps/Questions for Citizens?

Question 1: Attributes of Commercial Gambling

1. Morally Contested Industry*2. Gambling is Not an Essential Service*3. Unlike Other Forms of Entertainment*4. Gambling is Hazardous to Some*5. Application of Consumer Protection Laws is Unclear6. Contractual Arrangements With Powerful Special

Interests7. Risk of Creating Financial Dependency8. Independent Oversight Challenges9. Lack of Jurisprudence & Definitions of Key Terms*10. Unintended Effects of Policy Implementation Are

Largely Invisible

Question 1:Gambling Specific Accountability Implications

• 1. Morally Contested Industry:– Need for Objective, Credible and Complete Data on

Costs & Benefits.

• 2. Not an Essential Service:– Need for Evidence Based Case (Public Domain) How

Gambling Is in the Public Interest.

• 3. Unlike Other Forms of Entertainment:– Need for Disclosure: Market Stimulation, Unintended

Effects, %of Revenue from Problem Gamblers (By Type of Gambling).

Question 1: Gambling Specific Accountability Implications (Con’t)

• 4. Gambling is Hazardous to Some:– Need for Data On How Different Types of Gambling

Affect the Vulnerable; Efficacy in Protecting Vulnerable.

– Need for Statutory Clarity--Do Principles of Informed Consent, Precautionary Principle or Duty of Care Apply to Gov’t. as Regulator and Operator?

• 9. Lack of Jurisprudence & Definitions of Key Terms:– Clarity of Meaning--Social Responsibility, Duty of

Care, Informed Consent in Commercial Gambling.

Operating and Regulatory Regime: Ontario

Electorate

CabinetLegislativeAssembly

Auditor General

Min. Gov’t. & ConsumerServices

Min. of Public Infrastructure

Renewal

AGCO OLG

Standing Committees

AGRPPA OLGCA

Ombudsman

Accountability Gaps: Issues to Be Clarified in Accountability Relationship

• Enabling Legislation:– Operator: Accountability to Act in Public Interest in

Accordance with Principles of Honesty, Integrity and Social Responsibility (OLGCA Largely Silent)?

– Ministers’ (Operator & Regulator) Accountability for Harm Minimization and Mitigation (Acts and Policies Largely Silent)?

– Operator & Regulator: What does Social Responsibility Mean (Lack of Definition, Jurisprudence)?

Accountability Gaps: Issues to Be Clarified in Accountability Relationship (Con’t.)

• Policy Framework:– Explicit Chain of Accountability for Results that Links Explicit Mission

Statement, Objectives, Defined Terms and Core Principles to Public Interest?

– Should there be Reference to Accountability for Adherence to:• Precautionary Principle?• Informed Consent?• Duty Of Care?

– Silent: Transparency About Rationale for Policy Decisions, Including Trade-offs Between Revenue Generation and Adherence to Core Principles. Should There Be a Disclosure Requirement?

• Expectations on When Periodic Informed Public Consultation Is Required (Policy and Statutes Silent)?

• Should There be Sectoral Accountability for Oversight of Whole System of Commercial Gambling (Accountability for Regulation, Silent on System Oversight)?

Need for Model: Accountable Gambling in Public Interest

• Difficult for a Citizen to Know if Public Interest Served by Commercial Gambling:– Need for an Evidence Based Case Showing

Public Interest Served by Commercial Gambling (i.e. Net Benefit).

• Incomplete Basis to Hold Ministers to Account for Regulation & Operation:– Limited Basis to Assess if Doing Enough:

Harm Minimization and Mitigation (Addiction), Duty of Care, Informed Consent?

Questions for Citizens

• How Does a Government Know and Prove to Citizens That:– Gambling Is a Net Benefit to Community?– The Vulnerable Are Adequately Protected?– The Games Are Fair, the Odds Are Reasonable?– There is Enough Distance Between Government and

the Gambling Industry; No Perception of Undue Influence on Government Policy for Commercial Gambling?

Need for Future Research

• Accountability Focus Transcends Pro and Anti-Gambling Debate.

• Accountability Information is the Grist of Democracy. Relatively Unexplored Research Area.

• Addressing Accountability Gaps Can Lead to More Informed Discussion During Policy Development and Implementation on Intended and Unintended Effects?

• Phase II: Develop and Field Test Model of Accountable Gambling in the Public Interest