For immediate release
January 14, 2008

Time for a new game plan for lotteries

As 2007 drew to a close, fraud and theft charges laid against a Mississauga man remind us of the recent scandals of the Ontario Lottery and Gaming Corporation (OLG). The man cashed in a $5.7-million winning lottery ticket he allegedly stole from customers at his store. He is the first person charged resulting from an investigation into "insider" lottery winners.

To OLG’s credit, a cheque of $5.7 million, plus $788,000 in interest has gone out to the four legitimate winners in the most recent alleged “insider” swindle.

Of course, this was only the tip of the iceberg for a province addicted to gambling. The details of the scandal have been investigated and outlined in Ontario Ombudsman Andre Marin’s March 2007 report, titled, ‘A Game of Trust’.

As Marin documents, the shameful story broke with the fifth estate investigation into the allegations of Bob Edmonds, a senior who was cheated of his winnings by a lottery ticket retailer, and then forced into a three year battle with the OLG. The Corporation spent close to half a million dollars in legal fees fighting the 78-year-old man. Then, in the summer of 2006, it spent nearly $200,000 more in court, trying to keep Mr. Edmonds quiet.

However, Bob Edmonds case only scratched the surface of the numbers game and underlying deception that had infected the OLG.

From 1999 to November 2006, at least 78 retail owners and 131 retail employees have won major lottery prizes – not to mention those retailers who may have won thousands of smaller prizes. During these years, what amounted to a “you pays your money- you takes your chance” policy prevailed.

While, in the wake of the fifth estate report and its findings, there was, initially at least, more interest in circling the wagons to hide their problems, the OLG has since toughened its process of reviewing insider wins. A further review of its investigative procedures was launched, and a public education campaign initiated to underline the importance of signing tickets before taking them to lottery retailers – still underlining a policy based largely on “buyer beware”.

Marin’s report concludes that, “the OLG is hopelessly conflicted – it cannot be expected both to increase lottery profits by working with retailers, while at the same time acting as the sole body responsible for regulation and policy enforcement to keep retailers honest.”

As Marin recommends, “the time has come to impose a regulatory regime in this area under an oversight body with investigative authority, similar to the system that currently applies to gaming.”

It’s up to government to protect the public trust. With the latest charges being laid for insider wins, the questions remain as to when the McGuinty government will make good on its promise to implement the Ombudsman’s recommendations and restore the public’s faith in lottery retailers.

Questions also remain as to when the government first learned of the details of the depths of this scandal as this was not in the purview of the ombudsman’s investigation.

It’s time for a new game plan. If government intends to remain addicted to lottery revenues it is essential that it work towards honest, transparent dealings. External regulation to restore that one factor that is vital to the consumer/lottery relationship: Trust.