02-2003’ Year at a Glance 2002-2003 2002-2003 535 492 Liquor Revenue ($ millions) Liquor Licences by Class Class A Class B 5,510316 506 763 5,716397 Class C Class D Class E 1,61196 1,58106 8,035 8,008 Liquor Retail Outlets 910 863 Private retail liquor stores General merchandise 86 996 81 944 Liquor Products Available 11,138 10,300 Liquor Sales by Volume (hectolitres) 189,985 199,560 Spirits Wine 204,090 198,381 Coolers/Cider 140,490 139,088 Beer 2,229,580 2,234,661 2,764,145 2,771,690 2002-2003 Provincial Lotteries Revenue ($ millions) VLTs 450954 617 Slot machines 322 Ticket lottery 175 166 1,174 1,105 2002-2003 Charitable Gaming Number Net Number Net Licences Issued and Net Proceeds Bingo ($ p mriollcieoend4ss6) ($ p mriollcieoendss) Casino 1,577 122 1,418 1151400 Pull-ticket 2,397213 8 2,265783 26 Raffle 317 30 331 200 206 5,188 4,680 Gaming Venues 16 Bingo association halls 57 56 Charitable casino facilities 16 Ticket lottery centres 2,111 ! o catioPs with VT Ts 2,060 1,179 !v 1 ::n3 Entertainment Centres 2 2 1,272 Ai hi:r('\ I ■ ■ ; h-% V. ' Table of Contents MESSAGE FROM THE CHAIRMAN AND CEO 2 OVERVIEW 5 ORGANIZATIONAL PROFILE 6 ORGANIZATION CHART 9 OPERATIONAL OVERVIEW 10 STAKEHOLDERS 12 FIVE YEAR FINANCIAL SUMMARY 16 LIQUOR OPERATIONS 17 GAMING OPERATIONS 25 COMPLIANCE 39 HUMAN RESOURCES 47 PREMIER’S AWARD OF EXCELLENCE 50 SOCIAL RESPONSIBILITY 51 BENEFICIARIES OF GAMING PROCEEDS 55 PERFORMANCE MEASURES 61 Core Business 1 62 Core Business 2 67 Core Business 3 73 FINANCIAL STATEMENTS 79 Auditor's Report 80 Balance Sheet 81 Statement of Operations 82 Statement of Cash Flow 83 Notes to the Financial Statements 84 ALBERTA LOTTERY FUND COMMITMENTS 2003-2004 96 ALBERTA Alberta Gaming and Liquor Commission Annual Report 2002-2003 1 LOTTERY FUND Message from the Chairman and CEO Throughout the past year, the Commission focused on ensuring that gaming and liquor activities in the province continued to be delivered with integrity and in a socially responsible manner. The work of the Commission in this regard takes into account the continued growth and evolution of the gaming and liquor industries in the province over the past decade. In 2002-2003, the Commission implemented significant new and forward- looking gaming licensing policies and updated and implemented liquor policies with the input of stakeholders. The interests of stakeholders are balanced with the public interest, which is p aramount in our process of gaming and liquor policy development. Albertans want the choice to consume liquor or to gamble. They also expect gaming and liquor activities to be delivered in a socially responsible manner. Social responsibility is shared among all the key players, which includes the government, stakeholders and those who choose to consume alcohol or to gamble. In this regard, the Commission works closely with stakeholders to build upon existing social responsibility programs of information, education and prevention. Our compliance activities help to ensure that those who provide gaming entertainment or who sell or serve liquor do so within legislation, regulation and policies. Compliance activities include inspections, investigations and clear communications with licensees about their responsibilities. These contribute to the integrity of the gaming and liquor industries of the province. In August 2002, the Commission marked the tenth anniversary of video lottery terminal (VLTs) operations. The revenues from these and other gaming operations have provided significant benefits to communities throughout the province over the past decade. The province will mark the tenth anniversary of the privatization of liquor retailing, warehousing and distribution in September 2003. The success of the province's private liquor retail model attests to the commitment and integrity of private entrepreneurs in Alberta. The Commission is committed to this retail model for liquor retailing. 2 A’berta Gaming and Liquor Commission Annual Report 2002-2003 Results from our performance measures in 2002-2003 indicate the Commission provides a h igh level of service to the public and stakeholders. Our employees are to be credited for their professionalism and dedication to the core businesses, goals and targets of the Commission. Their commitment is key to the success we have achieved, and I t hank them for their tremendous achievements. I a lso extend my gratitude to the Board members, who have worked diligently to fulfill our obligations in the public interest. I t hank them for their efforts, continued dedication, and invaluable contributions. Our challenges in the future are to keep abreast of the changes and trends in the gaming industry, to be proactive in addressing issues, and to work with stakeholders in examining how to improve programs for the socially responsible delivery of gaming and liquor activities. Chairman and Chief Executive Officer ALBERTA Alberta Gaming and Liquor Commission Annual Report 2002-2003 3 LOTTERY FUND Digitized by the Internet Archive in 2017 with funding from University of Alberta Libraries https://archive.org/details/annualreportalbe2002albe ALBERTA LOTTKRY FUND 4 Alberta Gaming and Liquor Commission Annual Report 2002-2003 ALBERTA Alberta Gaming and Liquor Commission Annual Report 2002-2003 5 LOTTERY FUND Organizational Profile The Alberta Gaming and Liquor Commission is a commercial enterprise and an agent of the Government of Alberta. The Commission consists of a Board and a C orporation. The Board is responsible for policy and regulatory matters. The Corporation consists of administrative and operational divisions responsible for the day-to-day functioning of the organization. The responsibilities of the Board are set out in section 12 of the Gaming and Liquor Act, and include; • Ensuring the operations of the Commission are appropriately carried out in accordance with legislation and Board policies. • Establishing policies for the operations of the Commission. The Board also takes policy direction from the Minister and develops strategies and plans to effectively implement this policy direction. • Reviewing and approving liquor and gaming licences and registrations. • Conducting hearings into matters involving licences, registrations and breaches of legislation. • Any functions assigned to it under any enactment. Members of the Board at March 31, 2003 were: • Norman C. Peterson, Chairman • Douglas Fulford, Board Member and Deputy Chairman • Edward Gaudet, Board Member • Patricia Whiting, Board Member • A.M. (Sandy) Dougall, Board Member • George Russill, Board Member • Alexander (Al) Evans, Board Member The number of Board members increased to seven from five in 2002-2003. The increased membership will increase the effectiveness of the Board and will allow broader representation from throughout Alberta. During the year, the Board began to alternate its monthly meetings between St. Albert and Calgary to provide more convenient access for licensees throughout the province who are required to appear before the Board. ALBERTA LOTTERY FUI'JD 6 Alberta Gaming and Liquor Commission Annual Report 2002-2003 VISION The Commission, as an agent of the Government of Alberta, works to achieve the vision of the Ministry of Gaming. This vision is to strive to balance choice and responsibility in the province's gaming and liquor industries, use revenues derived from these activities for the benefit of Albertans, and provide opportunity for competition and enhanced service in its liquor and gaming industries. MISSION The mission of the Commission is to ensure that gaming and liquor activities in Alberta are conducted with integrity and social responsibility, and to maximize long-term economic benefits for Albertans. GUIDING PRINCIPLES The Alberta Gaming and Liquor Commission has adopted the following guiding principles for gaming and liquor in Alberta. These guiding principles were initially and formally adopted by the government and applied to gaming activities, following from the Gaming Licensing Policy Review. The principles were expanded by the Ministry of Gaming to also apply to liquor activities. The guiding principles are subject to ongoing review, to ensure they continue to reflect Albertans' values. 1. The integrity of gaming and liquor activities will be ensured. 2. Gaming and liquor policies will reflect a commitment to social responsibility. 3. Gaming and liquor policies will be supported by sound research and consultation with the public and stakeholders. 4. The collection and use of gaming and liquor revenue will be open and accountable. 5. Gaming activities will meet standards of quality to protect the integrity of gaming activities, provide gaming entertainment value to consumers and help to keep gaming dollars in Alberta. 6. Alberta's liquor industry will continue to be among the most progressive and competitive in the country and continue to lead the nation in terms of supply, distribution, pricing and customer service. 7. The financial return to eligible groups from charitable gaming and from provincial lotteries is to be maximized for the benefit of Albertans. ALBERTA Alberta Gaming and Liquor Commission Annual Report 2002-2003 7 LOTTERY FUND VALUES The Commission is committed to operating according to the following values. It will: • act with integrity and in a f air and impartial manner; • strive to balance social and economic responsibilities to the people of Alberta; • foster clear, open and courteous communications and consult with stakeholders; • achieve excellence in customer service; • nurture a working environment that is characterized by teamwork, collaboration, and open communication; • be an innovative and adaptable organization that focuses on continuous improvement in the quality, effectiveness, and efficiency of our products, services and business processes; and • be responsible stewards of assets entrusted to us, maintaining our accountability to the Province of Alberta. CORE BUSINESSES The core businesses of the Commission are: 1. License and regulate liquor activities. 2. License and regulate charitable gaming activities. 3. Conduct and manage provincial gaming activities - v ideo lottery terminals, slot machines and lottery ticket sales. These core businesses are established in accordance with the Gaming and Liquor Act (Alberta), Criminal Code (Canada), and within the policy framework established by the provincial government. ALBERTA i LOTTERY FUND | 8 Alberta Gaming and Liquor Commission Annual Report 2002-2003