Problem gamblers’ lawsuit against OLG rejected

TORONTO – The Ontario Lottery and Gaming Corporation has won a legal victory in a $3.5 billion lawsuit filed against the government agency on behalf of problem gamblers.

More than 10,000 people who signed "self-exclusion" forms to stay out of government run casinos between 1999 and 2005 were seeking approval for the lawsuit to go ahead as a class action.

The lottery corporation is alleged to have failed to exercise its duty to prevent people from continuing to gamble after signing the forms.

Ontario Superior Court Justice Maurice Cullity declined to certify the lawsuit as a class-action proceeding, in a decision released this week. "The tension between maximizing profits and promoting responsible gambling to the financial detriment of (OLGC) is acute," the judge observed.

But the issue he was required to decide was a "procedural motion", wrote Cullity. "I am of the opinion that the attempt to define the common issues in a manner that would avoid an inquiry into the status of each class member as a "problem gambler" has not been successful," the judge wrote.

The ruling did not determine the merits of the claims against the lottery corporation, only whether a class action was the proper way to proceed. Cullity concluded the personal circumstances of each problem gambler are too varied and require individual lawsuits.

Jerome Morse, lead lawyer on the class action, said Friday he is in the process of filing an appeal of the ruling.

Even if an appeal is unsuccessful, the issue of what obligation the Crown agency has to people with gambling addictions is likely to be the subject of several lawsuits. The court heard that the lottery corporation has paid out an average of $167,000 per case to settle nine individual lawsuits with problem gamblers and at least four more are outstanding.

Casino and slot operations at government operated venues in Ontario generated more than $3.5 billion in the 2008-09 fiscal year. The provincial government and the lottery corporation spent a total of $49.5 million on "responsible gambling initiatives," such as research and funding for counseling services, the court heard.

Self-exclusion forms require an individual to provide photo identification and people are warned they could be charged with trespassing if they re-enter a casino. The forms in place since 2005 include a clause that absolves the lottery corporation of any responsibility if someone who signs a form continues gambling at a government-owned site.

A senior official at the lottery corporation indicated it is a leader within North America in its problem gambling initiatives.

"We are introducing new training for gaming staff to search for red flags" involving its customers, noted Paul Pellizzarri, director of policy and social responsibility at the lottery corporation.

It is also considering the introduction of facial recognition technology at its sites.

The exclusion forms are a "self-help" program and not "policing", which he said is not the obligation of the Crown agency, said Pellizzarri.

"Experts have told us that to be effective, any controls have to be by the individuals themselves," he said. For gaming customers who think they may have a problem, "our role is to get them help as quickly as possible," he explained.