Responsible Marketing of Video Lotteries

Aiming for a reduction in the number of VLT sites of at least 31%, or 1,142 sites, this major strategic initiative constitutes one of the key elements in Loto-Québec’s Government-endorsed 2004-2007 Development Plan1. However, game offerings must remain sufficiently varied and geographically diverse so as to prevent the reappearance of illegal terminals.

When the reduction plan was first implemented, the network included 3,663 sites. On March 31, 2008, only 2,733 sites remained, representing a decrease of over 900 sites.

The opening of the two Ludoplex gaming halls, as called for in the 2004-2007 development plan as a means of restricting access to VLTs, is part and parcel of the network reconfiguration plan. Originally, the two gaming halls housed 200 and 335 VLTs, respectively. Of these, 40 were withdrawn from the Ludoplex in Trois-Rivières, and 60 from the Québec City site. The withdrawal of the devices made way for new electronic Texas Hold’em poker tables: four in Trois-Rivières and six in Québec City. Each table can seat up to 10 players.

Succcessful carrying out of the network reconfiguration plan

Compulsory withdrawal of the VLTs

In particular, the Plan calls for the compulsory withdrawal of VLTs from all sites operating four or fewer units in certain targeted sectors based on the number of inhabitants per unit and the socio-economic profile of the residents. The VLTs were withdrawn in tandem with the opening of these gaming halls:

• Sectors in which the average annual household income is below $50,0002 and where the ratio of units (as determined in November 2003) is higher than the Québec average of two units per 1,000 inhabitants
• The four most highly populated urban areas in Québec - Montréal, Québec City, Longueuil and Laval

Voluntary VLT withdrawal program:

In addition, the Development Plan calls for a voluntary withdrawal program across the province offered to retailers with VLTs in the targeted zones and owners of multiple sites (10 VLTs) in exchange for compensation equivalent to one year of commission. This program ended in 2006 and saw the network reduced by more than 130 sites.

Furthermore, a voluntary withdrawal program is currently being offered until November 30, 2009 to retailers located within a 2.3-kilometre radius of the Québec City and Trois-Rivières gaming halls that were not targeted by the compulsory withdrawal program. Thanks to this initiative, there has been no increase in game offerings in the areas around the two gaming centres.

Number of Sites
(as of March 31 of each year)

1 This approach is based on the recommendations of researchers.
2 As established by Statistics Canada’s 2001 Census.