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$3.5 Billion Class Action Against Ontario Lottery Denied By Court

Posted on March 20th, 2010

A $3.5 billion court case filed in the Ontario Superior Court against the Ontario Lottery and Gaming Corporation (OLGC) as a class action representing problem gamblers was not accepted by the court. The complainants in the class action involved more than 10,000 people who asked the court to allow the class suit to proceed. These people, who claimed to be problem gamblers who signed “self-exclusion” forms to avoid going into government-run casinos accused the lottery corporation of neglecting its responsibility and allowing people who have signed the forms entry to the casino and to gamble in the period between 1999 and 2005. In a resolution announced this week, the legal action was rejected by Superior Court Justice Maurice Cullity as a class action lawsuit.

The judge noted that “the tension between maximizing profits and promoting responsible gambling to the financial detriment of OLGC is acute.” The court’s decision was not made based on the facts of the claims and the status of the case against the lottery firm, but only to establish whether a class suit was the appropriate course of action to take. Judge Cullity wrote that the ruling he was asked to make was a “procedural motion”, adding that, “I am of the opinion that the attempt to define the common issues in a manner that would avoid an inquiry into the status of each class member as a ‘problem gambler’ has not been successful.” He said each problem gambler has to file a separate complaint because the way events happened in every gambler’s private life differs.

The court was told that a total cost of $49.5 million was used by the government of Ontario and the lottery corporation to fund research and services for rehabilitation and guidance under “responsible gambling initiatives”, and that the lottery firm has resolved nine individual court cases with problem gamblers, paying $167,000 per case on the average, with around four cases still unsettled. Government-run casinos and slot venues in Ontario yielded more than $3.5 billion in fiscal year 2008-09. Persons signing the self-exclusion forms are asked to submit their pictures for identification and are warned of the trespassing charges if they go inside a gambling place.

In 2005 a phrase has been added in the forms officially stating that the lottery corporation is not to be held responsible if a person goes on gambling at a government-run casino despite having signed a form. An official at the lottery corporation, Paul Pellizzari, said the forms do not intend to “police”, but are a form of a “self-help” system. He said, “Experts have told us that to be effective, any controls have to be by the individuals themselves. Our role is to get them help as quickly as possible.” The lottery’s director of policy and social responsibility also revealed that the agency is thinking of setting up equipment at its venues that could recognize faces. The attorney in charge of the class action, Jerome Morse said yesterday that he is going to appeal the court’s decision.