The Gambling Industry in Canada

Table of Contents

The gambling industry has become a major source of income for many local governments in Canada. Some people think that it is unfavorable for governments to operate casinos and lotteries. They suggest that private organizations should conduct business while governments should only work on collecting taxes. Churches consider gambling to be destructive in terms of family relations and cognitive well-being. Governments can address these concerns without abandoning the industry by developing policies aimed at information transparency and protection of the younger population.

Problem Statement

Many provincial governments in Canada operate companies in the gambling industry to generate revenue, but this fact has raised concerns from both individuals and institutions across the country.

Stakeholder Analysis

Some people believe that governments should not deal with gambling, labeling such activity as unfavorable. Instead, they propose that governments delegate the gambling industry to private organizations, arguing that revenue can be generated from taxing these companies (Nickels, 2019). However, taxes should be raised significantly in order to make the same amount of money (Nickels, 2019). This view, therefore, conflicts with the interests of citizens that visit these places. Furthermore, private casinos may become a catalyst for organized crime. There are also those who are concerned with the financial, physical, and cognitive well-being of younger individuals (Nickels, 2019). Churches consider easy access to gambling to cause addiction among adolescents and family breakdowns among adults.


There is only one proposed solution, and the rest of the opinions are only concerns. Some parties suggest that governments should not operate in the gambling business. This solution has implications in terms of taxes that will have to be raised to sustain current budgetary requirements. If taxes cannot be increased, governments can research other alternatives for revenue generation. For instance, local governments can invest in tourism and attempt to attract foreigners and people from different regions (Shone, Simmons, & Dalziel, 2016). The concern regarding the unfavorable consequences of becoming a gambling addict can be addressed by introducing limitations on who can visit casinos and use video lottery terminals (VLTs). Also, the governments that operate gambling organizations should provide transparent information about gambling and use warning signs to caution visitors about addiction.

Local governments should be in control of the gambling industry in order to mitigate organized crime and generate revenue while addressing the issues caused by gambling addiction. Delegating the industry to private organizations may facilitate the negative effects of gambling, because private entities would only be interested in increasing their profit (Albanese, 2018). Therefore, governments should continue running gambling organizations but with several adjustments. No individual under 18 years should be allowed to use VLTs or visit casinos. To alleviate financial consequences for adults, governments may introduce limitations for how much can be spent on gambling in terms of percentage of monthly income per month. The latter solution is challenging to implement, but it will ensure that gambling does not lead to family breakdowns and financial hardships.


Gambling is a profitable industry, which makes it a viable option for local governments in terms of raising money to fulfill their budgetary responsibilities. Although some people insist that governments should leave the industry to private companies, governments will have to increase taxes to generate the same amount of income. Governments should keep their gambling organizations but have to introduce limitations to protect adolescents from becoming addicts and adults from having financial issues.


Albanese, J. S. (2018). Illegal gambling businesses & organized crime: An analysis of federal convictions. Trends in Organized Crime, 21(3), 262-277.

Nickels, W. G. (2019). Understanding Canadian business. Toronto, Canada: McGraw-Hill Ryerson.

Shone, M. C., Simmons, D. G., & Dalziel, P. (2016). Evolving roles for local government in tourism development: A political economy perspective. Journal of Sustainable Tourism, 24(12), 1674-1690.

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