Manitobans ‘still getting used to’ new VLTs

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This article was published 06/07/2013 (4459 days ago), so information in it may no longer be current.

They’re designed to take your money, but don’t think there isn’t a method to a VLT player’s madness.

“You never double-down when there is a Jake on the end,” said a player, using the slang term for the Jack in a deck of cards, between swipes of the “max bet” button.

In fact, while the machines may seem random — designed to pay out 93 cents on average for ever dollar placed as a bet, according to Manitoba Liquor and Lotteries Corporation — the players are anything but.

“I only double the bigger payouts. If it’s even money or a little better I keep it, but if it’s bigger I try to double it up to get a bigger return,” said the 60-something-year-old player who wished to remain anonymous.

Speaking without taking his eyes off the glowing blue screen in front of him, the player said the new machines have gotten a resounding thumbs down from all of the players he has talked to.

“I don’t know anybody who likes the new ones compared to the old ones,” he said, “and it feels like (the new VLTs) snap up the money faster.”

MLLC spokeswoman Andrea Kowal said there has been a mixed reaction to the new VLTs, which began being rolled out earlier this year.

“People are still getting used to them — they’re different,” Kowal said. “We have some bar owners who are extremely busy and extremely happy with the new machines and so are their customers, and other locations where the customers want the old machines back.”

One recurring source of anger for players has been loss of the poker game “Jacks or Better,” in which players had 10 cards to get a pair of Jacks or better to win.

Kowal said MLLC will be able to load new games from Winnipeg through software on the new machines that are tied together through a network. In the past, individual games had to be loaded on each machine physically at the location.

“We are able to push out through the network new games and we never had that ability before,” she said.

Analysis of popular games will also be easier and more readily available, according to Kowal, and new and popular games will make the grade moving forward. She also didn’t rule out the possibility of the “Jacks or Better” game returning.

Fresh on the heels of the new machines, which are still being rolled out in some parts of Manitoba, is the announcement that the Selinger government will end the moratorium on VLTs in the province, adding up to 500 new machines to the 5,650 VLTs already in Manitoba.

The government is expected to raise up to $18 million in new revenue with the addition of the machines.

According to the annual financial report for 2011-12, MLLC generated $569 million in revenue across all ventures, including VLTs.

After operating expenses, running responsible gaming programs and paying for a host of other items from the $569 million, $342.9 million was allocated to the provincial government — up more than $46 million from five years ago when it was $296.8 million.

“We haven’t changed the formula or the way we allocate money to the government,” Kowal said, adding that MLLC doesn’t have its own reserve funds for capital projects requiring it to borrow money back from the government for various projects.

While revenues to the provincial government have jumped by $46 million in five years, the total revenue generated by MLLC has only grown by about $33 million.

“It could be a number of things,” Kowal said about the difference in revenue in and the money being allocated to the government.

“We’re spending less money and giving more to the government,” Kowal said, adding that they are running the organization more efficiently which is good for programs such as health, education and infrastructure.

In that same time period, money for corporate sponsorship and charitable and community organization funding has decreased from $7 million to $5.9 million.

Rachel Morgan, a provincial spokeswoman for Lotteries, said the government’s decision to end the moratorium will “benefit communities, support local businesses and the hospitality industry, and increase revenues for the essential services that benefit Manitoba.”

While the number of VLTs will increase in the province, the number of sites where the machines are played will not.

“We are offering high performing sites up to five more VLTs,” Morgan said. “For larger sites that are at the cap, we are raising the site cap on VLTs from 35 to 40.”

Another change will be the commission structure paid to VLT site owners. In the past, the commission was paid out at a flat rate of 20 per cent to business owners, but now the payout schedule will be tiered.

The new structure will pay out 22 per cent on the first $200,000 collected by site owners, but decreases based on each additional $200,000 to the point where any money collected over $600,000 will be paid out at 17.5 per cent.

“Manitoba currently provides 20 per cent commission for all commercial sites except Assiniboia Downs and True North MTS Centre,” Morgan said.

Veterans clubs will continue their existing commission of 25 per cent and tiered commissions will not apply to First Nations site-holders, Morgan said, adding that agreements with the Manitoba Jockey Club and True North are not affected.

“Under this new structure, we anticipate most siteholders to see a benefit, particularly smaller siteholders.”

Funding for responsible gaming initiatives has increased over the past five years, going from $3.4 million to $4.3 million.

“We recognize gambling addiction is a serious issue that goes deeper than just access to VLTs,” Morgan said. “This is why we’re committing two per cent of net revenues from the Manitoba Liquor and Lotteries Corp. to supporting and strengthening responsible gaming and consumption initiatives, funding addictions treatment services and funding more research into gambling.”

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