First Class Action Suit Goes to Court in April We Wrote That Jean Brochu, a the Expectation Is That This Will Hap- Quebec City Lawyer Would Appear Be- Pen This Fall

Issue 93 June 2002 First Class Action Suit Goes to Court In April we wrote that Jean Brochu, a the expectation is that this will hap- Quebec City lawyer would appear be- pen this fall. fore a judge in that city to request the What happens next could be of enor- court's permission to bring a class mous significance to both gaming action suit against La SociCtC des lo- and addicts. teries du QuCbec, a wholly-owned subsidiary of Loto-QuCbec. The suit Were Brochu to win, Loto-Quebec Ivan Sack would be on behalf of Quebecers who would almost certainly have to pay . in bars, beer saloons and other suffer a VLT adhction, and would out many millions of dollars in set- public places'. claim that La Societe des loteries du tlements and perhaps have its activ- Quebec had not done enough to alert ity - at least as this relates to VLTs, He also wrote that 'The main ques- the public to what Brochu says is the curtailed. If this happened in tions, in fact and in law, to be collec- adhctive nature of VLTs. Quebec, it would almost assuredly tively dealt with are the following: only be a short time before VLT We also wrote that Brochu is seelung operators in other provinces, and in a) each member of the . (class to have the court order that La Sociefk the United States, faced similar action) . .group is a pathological des loteries du Quebec provide addi- suits. The same could also apply to gambler and therefore suffers from an tional funding for VLT addiction pre- VLT manufacturers such as Spielo illness; b) each member of the group vention and treatment. No dollar and VLC. Given that much of the suffers from this illness as a conse- amount has been set for damages. settlement money would go to ad- quence of the respondent's fault; c) each member of the group is entitled to Judge Roger Banford heard Brochu's dicts and to addiction treatment the payment of an indemnity to be claim April 15 17 and handed down agencies, this case also has the po- - determined and, d) the respondent's his decision May 6, 2002. fis deci- tential to significant impact them. extra-contractual liability'. The judge sion related not to the merits of the Brochu and his colleagues are also defined 'extra-contractual liability' to claim but to whether it qualified as a taking a significant risk (gamble?) in mean: 'a) is the respondent . (La class action according to Quebec's that, should the next judge decide not Socidtt des loteries du Qutbec) . Civil Code and was therefore entitled to hear their case, or to hear it and under the obligation to warn the users? to be heard by a subsequent court. In then decided against them, a prece- and, b) if so, was the obligation ful- deciding that the suit qualifies, the dent will have been set. A precedent filled?,. judge has opened to door for what we whlch will make it much more diffi- believe to be the first anti-gaming class cult for others to bring similar ac- Because this is an action which seeks action in North America, and perhaps tions against gaming corporations. to speak for an entire class of people the world. (pathological gamblers), the judge also In handing down his May 6 decision, made provision for people to exclude It is important to note that the suit is Judge Banford set out the parame- themselves from it. To this end, he restricted to those who play VLTs and ters for the subsequent court's con- instructed that ads be placed in all does not include those who play at sideration of the suit. major Quebec newspapers informing Quebec's three commercial casinos. He wrote that the class action would the public of his decision and of its In handing down his decision, Judge apply, as requested by Brochu, to right to be excluded. These ads ap- Banford stated that it did not obligate '. every person who, since 1993, peared May 22,2002. the next judge to hear Brochu's case. has become a pathological gambler The second judge could decide it is Those wishing to be excluded must while using the lottery-video termi- send a certified letter to the court clerk without merit and set it aside. nals put at her (his) disposal and stating their name, address and their No announcement has been made as to maintained by the respondent, . wish to be excluded. They have until when the claim will be heard though (La Societt des loteries du Quebec) July 15,2002 to do this. -Page 2 Canadian GAMING News - mile we understand the judge's wish and semi-conductors take on lives of to give people an opportunity to opt their own and become much more On the Move out of the class action, the methodol- sinister than their individual compo- ogy he has selected is flawed. To be nents would indicate. He will have Casino Windsor excluded one will have had to have to prove to a judge that these boxes Ron Thacker, Senior Vice Presi- read the ad, decided that the subject have the ability to overcome an un- dent Gaming Operations has left to applied to them, had the initiative to suspecting player's own better accept a similar position with write a letter and have it certified, and judgement and to lead himher on a Flamingo Las Vegas (formerly the then send it. We fully expect the self-destructive course. A tall order Flamingo Hilton). HISposition has Brochu action will speak for many we thmk though one whlch will not been eliminated and his duties as- who are not even aware that they are get in the way of the sensational sumed by other Vice Presidents. part of it. media stories and the hype which Thls could be significant as the judge accompanies such cases. was left to Loto-Quebec. points out that members of the group A Toronto Star reporter recently Last month we had an article which who have not requested to be excluded asked us about this case and why gave highlights from the speech given may be summoned by the respondent lottery corporations were placing by Harrah's C.E.O., Phil Satre at the ' . to be examined on discovery or ceilings on their VLTs and, in some Canadian Gaming Summit & Exhibi- for a medical examination'. Some- cases, cutting back? We were asked tion. While he admitted that some thing which could come as an unwel- if this was not an adrmssion that would see his opposition to VLTs as come shock for some. VLTs are addictive and harmful? self-serving given that he operates casinos, he stated that he opposes any This class action is not likely to be We said that while we were not party form of gaming that undermines public resolved soon. Whatever is decided, to the decisions, our sense was that confidence in our industry, and got there are bound to be appeals. they were often prompted by opera- applause. tors responding to political concerns From our perspective, the judge has That VLTs are controversial cannot be placed a sipficant burden of proof that VLTs are too accessible. An honest answer which also happened disputed. New Brunswick and Prince upon Brochu by requiring that he Edward Island have cut back substan- prove that 'each' member of the group to help shleld operators from claims that they know their VLTs are addic- tially. Quebec has cut back. Alberta is a pathological gambler; that the ill- has imposed a cap while Ontario and ness of 'each' is La Societe des loter- tive. This said, Brochu should serve as a wakeup call for gaming policy British Columbia announced VLT pro- ies du Quebec's fault and, with regard grammes and then cancelled them to the societe's extra-contractual liabil- makers and VLT operators to do more out of the box thmkmg when it when the public objected. Only ity, that one exists and that, under it, Saskatchewan, which on March 22 the societe had an obligation to warn comes to the hreof their VLT programmes. added 400 to take its VLT network up users and that it failed to do this. to 4,000 has increased its commitment. The prevalent thinking across our What, for example, constitutes a warn- Sensing a change in the wind, New ing and how does one determine industry today appears to be that the VLTs were here when I got the job, orders for VLTs in Nova Scotia and whether a warning was sufficient to the Quebec have included options to help need? And what of the free will of the the government expects us to turn over $x millions this year, and the players detect an addiction to VLTs individuals - at what point did they and to help sensitize them to the extent stop being responsible for their actions politicians can worry about the public and the media. of their play. New orders in Alberta and at what point &d the soci&e be- and Saskatchewan will also likely con- come responsible? And, was thls point This works to the extent that the tain similar requirements though no the same for all members of the group, politicians who nominally run our one knows if they will work. A follow if not why not, and was it reasonable to gaming corporations understand up study in Nova Scotia - the first expect the soci&e to know all these VLTs and are prepared to defend province to adopt them, will hopefblly C thmgs? and support them.

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