A program in existence since 2010 in which four casinos, Casino Rama, Caesars Windsor, Fallsview Casino and Casino Niagara— owned by the Ontario Lottery, but run by private operators—loaned millions to patrons has lost million in 605 defaulted accounts. Since 2010 the program has approved of million in credit.
The loans are for short terms, are interest free and due within 30 days. Patrons can fill out applications at the casino, which hires credit checking services to vet the requests.
The Star obtained the information through records of Ontario Lottery & Gaming that showed that the defaulted accounts had an average value of $17,000 in unpaid debt.
The OLG says it tried all legal remedies, including collection agencies, to get the money back, without success. It now considers the money “uncollectible.”
Many casinos refuse to extend credit, and groups such as the Problem Gambling Institute of Ontario say that it can cause a destructive cycle as gamblers “chase their losses.” The OLG said it does not know if any of the 605 are problem gamblers. And in fact, it is forbidden from granting credit to those who display signs of the disorder—and employees are trained to look for those telltales.
Records show that the program, which is not advertised, last year turned down 59 of the 171 who applied for it. Those getting the interest free loans represent less than .25 percent of the total customers.
John MacFarlane, OLG vice president of gaming, defended the program. “We view it as tool of convenience. We don’t want people coming in with pockets full of money, from a customer safety and security (standpoint),” he said. “It’s really primarily there for folks who, first off, demonstrate the wherewithal they can afford credit. There is a significant vetting process before granting credit.”
A statement from the OLG added: “Credit is not intended as a way for players to borrow money when they have no other means or cannot afford to play.”
