N.S. moves to protect itself against lawsuits
The province’s move to shield itself from gambling-related lawsuits amount to depriving justice to the many Nova Scotians whose lives have been destroyed by government-backed VLT machines, says a Halifax personal injury lawyer.
“The government is proving that it is addicted to the revenue that these machines offer the province, sinister machines that are designed to drag people in and exacerbate their gambling addiction,” said Ray Wagner, responding to proposed government legislation that has been introduced.
The Gambling Control Act amendment calls for immunity protection to be retroactive to May 2, 1991, back to the day VLTs were introduced in the province. The proposed protection extends to the Nova Scotia Gaming Corporation, the Atlantic Lottery Corporation, casino operators in the province, as well as cabinet ministers overseeing gambling since the introduction of VLTs.
Finance Minister Karen Casey introduced the amendments and said the province is following similar changes passed by the New Brunswick government in December.
Both Casey and Premier Stephen McNeil said the measure, protecting the government from potential class-action suits, is meant to also protect taxpayers from potentially costly lawsuits. Both Casey and McNeil also said gambling comes down to an individual choice but that the province does have a responsibility to help problem gamblers.
Based on the Canadian Problem Gambling Index, about 47,000 adults in Nova Scotia are at various levels of risk for problem gambling. About 7,000 adults are identified as severe problem gamblers.
By the province effectively protecting itself from the threat of financial liability, it’s essentially condoning problem gambling, said Wagner.
“Bad behaviour that underlines this whole problem will continue because no one will challenge the province or take them to task concerning the harm that’s being caused to people."
The law would not protect the province, Nova Scotia Gaming Corporation or the Atlantic Lottery Corporation, from cases of negligence. But Wagner said that’s a smoke and mirrors attempt by the government to trick people into believing they could be eligible for compensation. Wagner said generally people who are addicted to VLTs are low income and can’t afford to take legal action against the government on their own. He said the only way these people could be compensated is through action on behalf of a large number of complainants, but the province is proposing to outlaw these class-action suits.
Gambling has proven to be an important revenue stream for the province, which regulates the industry. The total gambling revenue estimated for 2019-20 fiscal year is $141.2 million, according to the province. VLTs account for $58.4 million of that revenue. The province is estimating a jump in gambling revenue to $146.9 million for the upcoming fiscal year.
At the same time the government has come under criticism for not doing enough for problem gamblers. In January the NDP produced an access to information document showing the Liberals canceled a VLT addiction program, My Play, in 2014 due, in part, to a “significant drop in revenue.” In emails to Casey, a government staff member admits the My Play system was acting as a disincentive to people using VLTs. Revenues from VLTs increased by $10 million the year following the elimination of My Play.
Casey pointed to a Newfoundland class action lawsuit against Atlantic Lottery Corporation as the impetus for the proposed protective legislation. The case is before the Supreme Court of Canada and represents about 30,000 people living in Newfoundland and Labrador.
The suit alleges that the line games installed on VLTs are deceptively designed, unlike other forms of gambling. It points to studies that VLTs have twice the rate of causing gambling addiction compared to other forms of legalized gambling.
Claudia Chender, NDP finance critic, suggested the province is introducing protective legislation because it's vulnerable to the same action, particularly with limited options available to problem gamblers.
"We should be updating the gambling strategy, we should have more help available in the Department of Health and Wellness for folks struggling with addiction," said Chender. "It is strange when we see action to shield the government from liability."
Wagner went a step further, saying the province as the regulator is well aware of the serious harm caused by VLTs, “but sits back and allows it to happen because they are addicted to the revenue.”