BC arts cuts - gaming money evaporates effective immediately
In the beginning, gaming was called gambling. And it was illegal in Canada under the Criminal Code starting in 1892. But then in 1901, a key exemption emerged – gambling was legal if it was a raffle at a bazaar held for charitable or religious purposes. By 1906, the federal government allowed lottery schemes to be run by charitable and religious organizations. Thus began the intimate connection of gambling and charities.
Slowly other forms of gambling were allowed – bets on horse racing (1910), select games of chance at agricultural fairs and exhibitions (1925), and gambling on the premises of social clubs if the operator did not take a cut (1938). Then in 1969, a federal amendment to the Criminal Code allowed federal and provincial governments to conduct lotteries – which led to a struggle between the two levels of government over gambling revenues. Several provinces began to create lottery corporations and the federal government established a national lottery in support of the 1976 Montreal Olympics. Competition ensued. Eventually in 1985, the federal government amended the Criminal Code to grant the provinces and their agencies the sole legal right to conduct or have conducted lotteries and games of chance. Thus in BC we have the BC Lottery Corporation (a Crown corporation operating under the Gaming Control Act of BC) and the BC Gaming Policy and Enforcement Branch (a government bureaucracy regulating gaming).
Charities have maintained the right to earn gaming revenue through ticket raffles, social occasion casinos, wheels of fortune, a casino at the PNE, bingos and poker games. Such activity must be licensed by the BC Gaming Policy and Enforcement Branch. In 2008/09, BC charities earned $20.7 million through their own licensed gaming activities. However, a much larger percentage of their gaming revenue has been earned by the gaming activities run by the province and its licensed gaming operators. This funding is paid out by the Gaming Policy and Enforcement Branch through various granting programs including Direct Access, Bingo Affiliation, Bingo Association, Special One Time Grants and BC 150 grants. For arts organizations in BC, funding provided through gaming grants amounts to approximately $20 million in recent years – which is more than the entire annual budget of the BC Arts Council (even before it was recently cut by 40%).
The key question here is: why did charities start getting gaming funds in the first place? Well, back in the good old days when gaming was gambling, it was seen as a vice or sinful activity. So gambling when the proceeds went to charity created a societal legitimacy. Even today, the BC Lottery Corporation points to community benefits of helping charitable and community organizations when justifying its own activities. The BCLC website has a section called Good Causes with a feel-good story about the BC Wheelchair Sports Association and more story links for Pacific Assistance Dogs Society, Nanaimo Marine Rescue, Campbell River Children’s Choir and the Orphaned Wildlife Rehabilitation Society. Perhaps the best part is the logo posted twice on the web page which claims: “When you play GOOD things happen.”
Interestingly enough, the BC Lottery Corporation web site does not have any feel-good stories about how the vast majority of BC’s net gaming revenue goes directly to the province through its consolidated revenue fund and the health special account. Nor is there an update about the recent freeze and how the BC Liberals have decided to redirect funding this year. According to a message sent to community organizations on August 27, 2009, Housing and Social Development Minister Rich Coleman explains that a number of changes are being made to the community gaming grant program effective immediately. Due to “unprecedented global economic challenges” the province is making difficult decisions in order to continue funding core services and priorities. As a result, limited arts and culture activities will be funded and BC Arts Council programs will be funded by the community gaming program. In addition, all multi-year grants are cancelled including those promised to many organizations last year. Most important, there is no reconsideration or review available – all decisions are final.
Starting on August 27, many arts organizations have reported receiving letters which deny funding through the Direct Access Gaming program. Some have also reported letters which promise that their BC Arts Council funding will be paid out by the BC Gaming Policy and Enforcement Branch. Such a payment method is highly unusual… but it does allow the provincial government to claim that it is continuing to “ensure ongoing support for British Columbia’s vibrant arts and culture community.” It may even help the government claim that the gaming funds are directly benefiting community groups in BC. What thischoice of distribution means for the future of arts funding through gaming is certainly an open question.
It is intriguing to note that in early August 2009, the BC Lottery Corporation decided to raise its weekly online play limit from $120 / week to $10,000 / week. According to BCLC representatives, the action is a response to player demand. NDP critic Shane Simpson claims it is a cash grab by a desperate government. Gambling expert Colin Campbell (a criminologist at Douglas College) believes the move is an attempt to capture more of the legal online gaming revenue – which our government estimates is growing at a rate of 20 per cent a year.
Perhaps it is becoming clear that the provincial government wants to maximize its own share of this growing gaming industry and minimize the payouts to community organizations. In BC, the total revenues from commercial gaming in 2008/09 were approximately $2.61 billion. Net gaming revenue for the province was about $1.08 billion. Only $156.3 million was redistributed to charities (including arts organizations). This year, that number will be much smaller. And it is likely that gaming revenues will only continue to rise.
I would like to close with one final thought. According to the official Hansard records of June 14, 1991, MLA Christopher D’Arcy (representing Rossland-Trail) made some comments about the distribution of what was then called public lottery dollars. He reminded members of the legislature that when the lottery program was first established in 1974, the purpose of lottery moneys was to support amateur sports, heritage activities and culture in British Columbia. He raised questions about transparency about several grants awarded through the system in place at that time. One thing he said is particularly on point for 2009 and I would like to quote from the Honourable Christopher D’Arcy: “For this amount of money, public funds – some would argue, voluntary tax contributions to British Columbia – there is more than ever a need not only for justice and fairness to be done and openness to happen with the disbursement of these lottery funds, which after all belong to the communities whence the money came, but for fairness to be seen by the people of British Columbia to be done. It does not help the image of the government of the day or indeed of the Legislature in general to have the feeling out there that there are hundreds of millions of dollars of lottery funds annually being disbursed one way or another without any public scrutiny, really. It’s a “trust us” situation on the part of the provincial government.”
You see, Premier Campbell, those gaming funds belong to us. They are intended to support community groups directly. In fact, you tell the people who gamble that their money is going to a good cause. Please – put your money where your mouth is.
Gaming revenue
There’s a lot more to this story. I notice that Rich Coleman bragged about funding the Police and Fire Games with gaming money when they were here. Now, if there was ever a group who can afford to fund their own able-bodied adult leisure activities, it’s police and fire personnel, but Mr. Coleman is a retired RCMP officer, isn’t he?
This story goes back to when the government of the day (NDP) promised to share gaming revenue with charities on a one-third basis if the charities agreed to “grow” gaming through slots and expanded casinos. (Until that time, casinos were charity-run.) Well, the promised split never happened. As some of us predicted, the government became addicted to gaming. My question is why is the NDP so silent about this issue? Maybe they plan to do the same when they take power?
Arts and Culture
When Arts and Culture die, your country dies. When I visit a country, that is what I look for first, arts are, the best way to learn about a country. I think, Campbell should have been disallowed to use the arts, for the Olympic Games. Campbell, would steal your eyes and then come back for your sockets. He has robbed this province so badly, I doubt BC will be able to survive him. It is no surprise, that he would thieve, the lottery funds. However, Campbell has Harper’s support, so, Canadians, will have to learn, how to live without our arts. How dull Canada will be.
Ok, where is the drill?
“More people need to understand have these numbers drilled into their head … 650,000 Canadians are employed … in the arts and culture community across this country. It’s $46 billion in the Canadian economy, which is to say, it’s more than twice the size of Canada’s forest industry, it’s three times the size of Canada’s insurance industry, it’s more than twice the size of Canada’s agriculture industry in economic returns. It is a massive portion of our economy….This has to be a central component—in our judgment—if we’re going to deal with economic recovery, support the quality of life in our cities, and support the creative economy in this country.” _Minister of Canadian Heritage, James Moore
Why Should we Support the ArtsShare
In these difficult economic times, with growing provincial and federal deficits, many people ask why they should support the arts. Surprisingly, some still consider the arts a frill and cannot justify taxpayer support. The arts have historically received cuts when other sectors, such as education, sports and health care, have been saved from the cruel budget scalpel. Why then is it important to support the arts?
Like any business, the arts sector is fundamental to a robust economy. It is a large labour-intensive, cost-efficient, high-growth industry representing approximately 2.4 per cent of the gross domestic product. Government of Canada statistics indicate that Canada’s heritage institutions, including historic sites, art galleries and museums, zoos, planetariums, observatories and botanical gardens, attracted 35 million visitors in 2004, while not-for-profit performing arts companies attracted 12.9 million visitors in 2006 (2 million in British Columbia alone) and earned $1.2 billion dollars the same year. The arts in Canada represents the fourth largest industry in terms of employment, supporting over 260,000 core jobs (2001 statistics) and are a source of pride in communities from coast to coast to coast.
For every dollar invested in the arts (publically and privately), the arts in Kamloops specifically generates $6.16 in direct economic spin off for local government. According to the City of Kamloops Cultural Strategic Plan developed in 2003, the arts and heritage sector contributes some $9.2 million in revenues to the Kamloops economy and collectively purchases approximately $7.4 million in goods and services. When factoring in both direct and indirect expenditures, the value of this sector in the Kamloops economy totals over $11 million annually. The arts sector is a net generator of direct income for all levels of government and pays more money directly to government in the form of taxes than it receives in grants.
The arts are one of the cornerstones of a well-rounded education program, instilling life-long learning skills that benefit the entire community. As a matter of record, students who participate in the arts improve their academic standing as well as their success in other areas of learning and life skills. In addition to increased capacity to learn, participation in the arts allows young people to have a positive outlet for their seemingly endless energy and imagination. By cultivating their enjoyment and confidence through arts education, young people are better prepared to assume their roles as productive, creative and entrepreneurial citizens.
The tourism industry in Canada has produced study after study indicating there are a growing number of visitors who rank arts, heritage, and other cultural activities as one of the top five reasons for travelling. Tourists want to explore the unique aspects of a place and indicate that visiting art galleries, historic sites and museums, and seeing live theatre are the primary reasons for their travel. According to the Canadian Tourism Commission, tourism spending in Canada totalled $74.7 billion in 2008, and total tourism GDP reached $30.3 billion, or 2.0 per cent of Canada’s GDP. The tourism sector also accounted for 662,900 jobs in 2008.
There are clear links between the quality of life within a community and its arts and cultural programs: they build important social connections and contribute to civic pride. By participating in or enjoying art classes, parades, festivals, art and history museums, theatres and symphony orchestras, community members of all ages and diverse backgrounds strengthen their relationships with one another through shared experiences. The spin-off is a healthy, safe community with robust economic development, community-wide participation, and family cohesion.
By nurturing creativity and fostering enjoyment and appreciation of artistic accomplishments we develop a better understanding of ourselves and the world around us, expand our capacity to be thoughtful and compassionate, encourage imagination and critical thinking and contribute to healthy, vibrant, and economically sound communities.
Jann LM Bailey, Executive Director Kamloops Art Gallery
BC arts funding cuts and reversal
It’s hard to keep up with facts about funding the arts!
http://www.orato.com/business-career/bc-government-cuts-20-million-for-art
http://www.orato.com/business-career/bc-government-retracts-arts-funding...
arts cuts
I work for a public art gallery, a portion of our revenue comes from the Lottery Corporation. Aside from the obvious, “gee I would like to keep my job”, there is no doubt in my mind that we will be closing our doors to the public because of these cuts. Why is it that people who don’t appreciate the arts are so quick to say “good, we don’t need you” when there are cuts? You will NEVER see art appreciators saying the same with regard to sports funding, heritage funding or any other special interest groups. Arts and Culture has always been one of the most misunderstood groups in our society. Seen as a bunch of “richie rich” people who suck money from the taxpayers, for their own pleasures by a public who refuses to acknowledge that because it does not interest them, it is of no importance. Shame on the government of BC and shame on all of you who are applauding the cuts. Our Province is going to be so much the poorer for thess losses. Ah, but we have the Olympics, right?
well said
Thank you Diane for your letter. Those who view the Arts only in terms of money need to realize that the investments the government makes to support the Arts in BC actually make a profit (1.38 for every 1.00 spent) so cutting funding only cuts government profit… in a time when the government needs more profits. Now do the cuts make sense to anyone?
Dumb, bad political move! And these people claim to be businessmen!
gaming money does not equal taxes
This money is generated from people who choose to use gambling as a form of entertainment. They know full well that a small part of this goes towards Arts, Culture, Health, Education and Sports programs. Despite the social problems that ensues from gambling there is/was that silver lining of the special interest groups receiving some of this revenue. It is NOT money generated from TAXES! I will probably lose my already ill paid job. I will probably be receiving EI benefits instead of helping to ensure that our community has a public art gallery to go to.
With the lack of jobs in our small resource driven community, the likelihood that I will find a job quickly is almost nil. The Liberals finance “problem solving” simply creates more problems. Much more.
The Liberals are stealing
The Liberals are stealing money from anyone they can to cover up for their massive debt. They are taking from every British Columbian to pay their self voted pay raises and for their bloated public affairs bureau which they use to try to fake the media into believing the public supports them.
I’m glad you said ‘try’ to
I’m glad you said ‘try’ to fake the media. We don’t fall for it — at least, those of us who aren’t owned by government buddies don’t fall for it.
BCLC President & CEO wants to support charitable programs!
In an opinion piece published yesterday in the Courier-Islander (http://www.canada.com/Online+gaming+will+keep+money+province/1937411/sto...), BC Lottery Corporation President & CEO Michael Graydon stated emphatically that his corporation’s true, altruistic motive for online gaming is to keep money in BC.
He says: “Last year, British Columbians supported offshore, unregulated internet gambling sites to the tune of $87 million – and that’s a conservative estimate. And with each dollar that left the province, a lost opportunity went with it – money that could have stayed here to support charitable programs and community services across BC.”
He is telling everyone that gaming money is going to charitable programs and asking BC residents to choose to gamble online with BCLC in order to support their own local communities – but the BC Liberal government is currently decimating its charitable gaming funding programs.
How hypocritical is that?
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