In Montreal the President and CEO of Loto-Quebec, Alain Cousineau, yesterday described the major challenges facing the corporation. Just a few weeks before the fortieth anniversary of the creation of Loto-Quebec Mr Cousineau was addressing members of the Montreal Board of Trade and told them that one of the questions the lottery industry should resolve is how to literally reinvent itself and create a new family of games.

"The lottery sector has changed greatly over the past 40 years," he noted. "Loto-Québec's new products will, therefore, need to incorporate such factors as competition, decision-making and skill, in addition to the fun of playing. That is a major challenge but meeting it successfully is critical if we are to maintain our products' competitiveness."

Loto-Québec's CEO also mentioned that the plan to reconfigure the video lottery terminal network (VLT) has met its objectives. They were even exceeded with the number of VLT locations being reduced by more than 36%. Mr. Cousineau explained that, in the bar and tavern network, achieving plan objectives resulted in about 11,500 VLTs being managed in some 2,380 sites. "It is a supply range that we consider optimal, i.e. it does not encourage problem gambling, while being large enough to discourage anyone from trying to establish an underground network."

Commenting that the growth in online gambling is a huge and probably irreversible worldwide trend, Mr Cousineau said that in Canada the industry grew by an average 30% a year between 2003 and 2008, going from $184 million to $675 million and is expected to pass the billion dollar mark in 2012. “With the emergence of online gambling, we have no other choice than to adjust to this new wave.”

Given the growth of online gambling, Loto-Québec is planning to submit a proposal to the government to set out guidelines for this practice. "For the time being we are supporting a cooperation agreement with the other five provinces who have already begun offering online gambling — a partnership that could resemble the one we already enjoy with regard to Canada-wide draws such as Lotto Max.” Mr. Cousineau insisted that, "Come what may, our proposal will remain true to Loto-Québec's history of activities that seek to channel gambling and establish a consumption framework to minimize social costs."

Over the past seven years, Loto-Québec has spent $160 million on assistance programmes for problem gamblers, administered by the Ministère de la Santé et des Services Sociaux, as well as management of VLT access controls, which is the responsibility of the Régie des alcools, des courses et des jeux. The corporation also has given $20.6 million to the Fondation Mise sur toi to support programs that promote responsible gaming as well as the implementation and continuous improvement of prevention tools within the company’s operations.

"In total, this represents $180 million committed by Loto-Québec during that period to prevent problem gambling, making Quebec one of the areas of the world where the most money is expended on that issue," Mr. Cousineau stated. In this regard, he added, "We are very proud that Loto-Québec was the first lottery operator in the world to receive the World Lottery Association's highest international certification for responsible gaming."

Significant investments have been made in technology and personnel training at Quebec’s four casinos - Montréal, Charlevoix, Lac-Leamy and Mont-Tremblant - as well as improved operational efficiency. "Casino operations require a large workforce," Alain Cousineau reminded his audience. "We work in a saturated and almost mature market where operational costs rise more quickly than revenue. That is why we have improved our technology and changed our way of operating. Our biggest challenge will be to maintain profit margins without sacrificing service quality because we are in the field of entertainment where customers want extraordinary experiences."

He concluded, "We want Loto-Québec to be recognized as a model in Quebec with regard to overall performance and as a corporate citizen, but our ultimate goal is that the Corporation be recognized as a world leader in marketing responsible games of chance and money games." (E-11.18.09)

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