Who pays for casino gambling? We ALL do!
There is a connection between problem gambling and bankruptcy. The Ontario Problem Gambling Research Centre released a report stating that 35% of all provincial gambling revenues come from
problem gambling. Since the province collects $4 billion in gambling
revenue that means "problem gamblers" spent (or rather lost) $1.4
billion last year.
That's a big number, but why should you care? "When someone develops
a gambling problem they often don't stop when they run out of cash,"
says Douglas Hoyes of Hoyes Michalos, trustees in bankruptcy.
"First they spend their savings. Then they cash out their RRSPs.
Then they run up their credit cards. And then, when the debts become
overwhelming, they may be forced to file personal bankruptcy."
Statistics Canada estimates that problem gamblers make up 0.6% of
the Canadian population or almost 200,000 people. Last year over
100,000 people and businesses filed bankruptcy in Canada. "When
a person files bankruptcy", says Ted Michalos, "their debts are
discharged which means they no longer have to pay them."
Unfortunately, someone has to pay the bill, so credit cards typically
charge interest rates of 18% or higher to cover these losses. What
does this mean? There is no free lunch. We all pay the price of
problem gambling. The $1.4 billion that problem gamblers lose to
the government is paid for by the rest of us - in effect, the government
has found another way to tax the people of Ontario. This tax doesn't
come off your paycheque; you pay it every time you carry a credit
card balance.
Problem gambling and bankruptcy often go hand in hand. "We see the human cost of problem gambling" says Douglas Hoyes. "If a person goes bankrupt due to problem gambling, the bankruptcy period
is generally extended for an additional year, so reducing problem
gambling would benefit everyone."
Emphasizing a fresh start for its clients, Hoyes, Michalos & Associates inc. works with individuals to determine the financial options best suited
to their situation. Hoyes, Michalos & Associates Inc. provides consumer
proposals and Ontario bankruptcy services to individuals throughout Ontario.