The Ontario lottery and gaming corporation (OLG) is considering rolling out self-serve lottery ticket terminals across the province to modernize lottery sales and offer more convenience to players. These types of terminals allow customers to purchase lottery tickets themselves using a touch screen interface, without the need for a retail clerk. However, the move is facing some opposition over concerns about increased problem gambling and loss of retail jobs.
What are self-serve lottery terminals?
Self-serve lottery terminals, also known as player-activated terminals or self-service betting terminals, allow players to independently purchase lottery tickets using a touch screen interface. Customers can select their game of choice, numbers, ticket quantity and other options through the interface. Payment is made using cash, debit or credit cards. The terminal then prints out the selected tickets.
These terminals provide a quick and convenient way for players to purchase lottery tickets without waiting in line at a retailer. They are common in many other provinces in Canada as well as countries such as the UK, France, Germany and Australia. Major lottery providers like Pollard Banknote provide the necessary software and hardware for jurisdictions looking to deploy self-serve lottery terminals.
Why is Ontario considering rolling them out?
The OLG has stated that introducing self-serve lottery terminals would help modernize lottery sales in the province and offer more options and convenience for players.
Some of the potential benefits cited by the OLG include:
– Improved customer experience – Players can make quick purchases without waiting for a clerk. Terminals offer a wider selection of lottery games in one spot.
– Increased sales – Studies in other jurisdictions have shown self-serve terminals increase overall lottery ticket sales. Players tend to spend more when using the convenient machines.
– Reduced costs – Automated terminals lower labor costs for retailers as fewer clerks are needed. Their streamlined operation also reduces other expenses.
– Combating grey market resellers – Unauthorized resellers often overcharge for lottery tickets. Self-serve terminals would make tickets available at fair prices.
The OLG says introducing the terminals would modernize the Ontario lottery market and bring it in line with other major lottery jurisdictions. The convenience and accessibility of the machines is expected to help generate higher revenue.
What are the concerns around self-serve lottery terminals?
Despite the benefits cited by the OLG, self-serve lottery terminals have been controversial, with several groups raising concerns about their impact. Some of the main concerns include:
– Increased problem gambling – Critics argue that the accessibility and convenience of self-serve terminals will enable compulsive gambling and lead to more gambling addiction.
– Underage access – Retail clerks help restrict underage access to lottery tickets. There are fears self-serve machines could enable easier access by minors.
– Job losses – Retail unions have argued that self-serve terminals will lead to reduced work hours and job losses for retail clerks.
– Targeting vulnerable groups – Some analysts say the machines could be disproportionately situated in lower income neighborhoods, exploiting vulnerable populations prone to problem gambling.
– Lack of sales data – Retailers benefit from data on lottery sales and redemption that may be lost with self-serve machines.
Critics say more consultation and impact assessment is needed before Ontario allows an unprecedented expansion of self-serve lottery ticket sales.
What do health experts say about the gambling impact?
Health experts have warned that significantly expanding access to lottery tickets through self-serve terminals risks increasing problem gambling issues.
Dr. Garry Smith, Director of Addictions at Ontario Shores Centre for Mental Health Sciences, has cautioned that self-serve terminals reduce a key safeguard against excessive gambling:
“There is no interaction with a human being who can observe behaviors and signs of distress or mental health issues. This removes a layer of protection against problem gambling.”
He notes that other jurisdictions that introduced the terminals also experienced notable increases in help calls for gambling addiction.
Nancy McPhee, a gambling therapist, has voiced similar concerns about round-the-clock access to lottery tickets:
“When you’re dealing with a gambling addiction, ease of access becomes a huge risk… Slot machines, internet gambling, and now self-serve lottery terminals – they will just trigger more destructive behavior for gambling addicts.”
Problem gambling advocates like Gamblers Anonymous have called for third-party impact studies and limiting the number of self-serve terminals if they are introduced. However, the OLG maintains that responsibility initiatives like setting a maximum spend will prevent abuse.
How could self-serve lottery terminals affect retail in Ontario?
Retail stakeholders have strongly opposed expanding self-serve lottery machines in Ontario over fears about reduced clerk hours, job losses, and declining in-store sales.
The United Food and Commercial Workers union estimates introducing just 5,000 self-serve terminals could result in the loss of 3,300 retail jobs. They argue terminals would replace clerks without generating additional employment, as has occurred in other jurisdictions.
Retailers also benefit from lottery sales driving foot traffic that generates spill over revenue on other in-store purchases. In their view, shifting ticket sales from clerks to impersonal machines could negatively impact these cross-sales and undermine the viability of small retailers.
However, the OLG disputes claims that terminals significantly displace retail clerks and says retailers would choose the number of terminals appropriate to their own needs and sales mix. The organization also points to data from the UK showing only modest declines in retail staff hours despite widespread use of self-serve lottery terminals.
What retail safeguards are being proposed?
To address retail concerns about self-serve lottery terminals potentially cannibalizing clerk sales and displacing jobs, some safeguards being considered include:
– Number limits – Capping the maximum number of terminals permitted in larger retail locations. Small independent stores may be excluded.
– Fee revenue – Providing retailers with a share of fees or commissions from terminal sales to offset any labor costs.
– Phase in – Gradually rolling out terminals over several years to smoothly transition and assess impacts.
– Machine size limits – Restricting the physical size of terminals to minimize floor space impacts in retail outlets.
– Location limits – Allowing municipalities to restrict terminal locations through zoning by-laws to achieve a balanced rollout.
– Data access – Providing retailers with sales and foot traffic data from terminals to support business planning and marketing.
– Responsible gambling – Incorporating consumer safeguards into terminal software such as spend limits.
Retail advocates argue these kinds of measures, if properly implemented, could allow modernization while avoiding negative disruption of retail clerks.
How prevalent are self-serve lottery terminals in other provinces?
Self-serve lottery terminals are already widespread across Canada, with Ontario lagging behind in adoption. Here is how other major provinces compare for the availability of player-activated lottery machines:
| Province | Number of Terminals |
|---|---|
| Quebec | Approx. 7,000 |
| British Columbia | Approx. 3,500 |
| Alberta | Approx. 2,000 |
| Manitoba | Approx. 550 |
| Saskatchewan | Approx. 375 |
As the table shows, Quebec leads in adoption with over 7,000 self-serve lottery terminals already deployed. In contrast, Ontario currently has zero terminals, although pilot testing is underway. The OLG hopes catching up with other provinces will help revive lagging lottery revenues.
Critics argue Ontario should take a more cautious approach to rollout rather than matching the scale seen in Quebec and British Columbia. However, the OLG maintains that appropriate responsible gambling features will prevent issues despite increased numbers of self-serve terminals.
What safeguards do other provinces use?
Other Canadian provinces with self-serve lottery terminals have implemented various responsible gambling and consumer protection safeguards including:
– Age verification – Customers must provide accepted ID to prove they meet the 18+ age restriction. Both human and biometric screening methods are used.
– Spend limits – Customers can set a maximum daily or weekly spend amount which will lock them out when reached. Limits between $20-$100 are common.
– Time limits – Terminals can be programmed to shut down during certain nighttime hours, such as 1am to 6am.
– Usage data – Lottery corporations monitor usage for signs of problem gambling patterns. Proactive notifications are provided with gambling addiction resources.
– Location limits – Some provinces prohibit terminals in venues associated with problem gambling or where minors may be present.
– Payment options – Requiring use of debit or credit cards enables tracking caps on spending. Cash-only machines are riskier.
Ontario would likely implement similar responsible gambling safeguards if it proceeds with a major terminal rollout. However, critics argue more study is needed on how effective these protections are in the Ontario gambling landscape.
What consultations have occurred on self-serve lottery expansion?
Prior to deciding on major expansion of self-serve lottery terminals, the OLG undertook a consultative review that included:
– Community meetings – Public townhalls were held to solicit direct feedback from residents.
– Stakeholder sessions – Retail groups, health advocates and other stakeholders provided input.
– Public polling – Surveys gauged public support and concerns about increased terminal availability.
– Written submissions – Emails, letters and reports were accepted from groups and individuals.
– Economic study – Impacts on retail, employment and government revenue were assessed.
– Responsible gambling – Academics and therapists gave feedback on safeguarding problem gambling risk.
– Pilot locations – Real world testing of multiple self-serve terminal models occurred at pilot sites.
– Executive decisions – The OLG board reviewed findings and provided direction on the rollout approach.
In announcing next steps, the OLG stated that the consultations provided valuable guidance that would shape strategies for responsible expansion of self-serve sales.
However, critics argue the feedback regarding problem gambling in particular was not given enough weight, with economic motivations taking priority over social impacts.
What types of self-serve lottery games and tickets are available?
If introduced in Ontario, self-serve lottery terminals would likely provide a wide selection of OLG lottery games and ticket options similar to those available in other provinces. This could potentially include:
– LOTTO MAX – Provides play options for the nationwide LOTTO MAX draw game.
– LOTTO 6/49 – Ontario’s most popular lottery game would be featured.
– ENCORE – Add-on game for LOTTO 6/49 would be available.
– DAILY GRAND – Offers ticket purchase for the DAILY GRAND daily draw.
– PICK 2/PICK 3 – Quick pick and selection options for these popular draws.
– SPORTS Select – Allows betting on major sporting events once legalized.
– Instant tickets – Dispenses common scratch and break-open instant win tickets.
– Specialty games – Spotlight limited-time games and prizes.
– Jackpot signage – Displays real-time jackpots to promote excitement and urgency.
The wide game selection aims to drive incremental revenue by serving as a one-stop self-serve lottery destination. However, it may also increase gambling harms due to convenient access to such a variety of lottery products.
How are other Canadian lottery corporations modernizing?
Apart from expanding self-serve terminals, other strategies used by Canadian lotteries to bolster revenues include:
– Enhanced mobile apps – Apps allow purchasing tickets online and scanning tickets for prizes. Features like notifications and loyalty programs retain players.
– Cashless payments – Allowing digital payment options like Apple Pay attracts younger tech-savvy players.
– Third-party retailers – Offering lottery sales through large chains like 7-Eleven improves access.
– Responsible gambling – Programs like voluntary purchase limits and self-exclusion build public trust.
– Customer data – Collecting and analyzing player habits enables personalized promotions.
– Online gambling – Providing online versions of lottery games sustains revenues as demographics shift.
– Prizes and games – More exciting prizes and new specialty games create fresh interest.
– Retail commissions – Increasing retailer commissions incentivizes clerks to promote lottery ticket sales.
The OLG views self-serve lottery terminals as part of a broader push to modernize through technology, data and responsible gambling initiatives. However, the rollout still faces questions on whether it is happening too rapidly without sufficient public health protections.
Conclusion
The potential rollout of self-serve lottery terminals in Ontario is a polarizing issue. On one side, the OLG cites potential benefits such as increased revenue, modernized sales, and player convenience. However, health advocates warn about risks like underage access and exacerbating problem gambling.
Key questions remain about impacts on retail jobs, what safeguards are needed, appropriate number limits, and whether Ontario is ready for an expansion of self-serve gambling. The concerns around gambling harms in particular will require more extensive consultation and assessment.
Ontario will need to find the right balance between revenue objectives and preventing broader public harm. Gradual, restricted introduction of terminals with robust responsible gambling measures may help manage both economic and social risks. But outright rejection of major expansion is still the safest option according to some health experts.
The coming year will see critical decisions made around Ontario’s lottery modernization plans and the appropriate role of self-serve terminals. How these decisions account for both economic and health impacts will have major implications for lottery players, retailers and communities across the province.