The Atlantic Lottery Corporation is deceiving its players and breaking the law — old school-style — according to arguments in a class action against video lottery terminals (VLTs).

“VLTs are a form of continuous electronic gaming … programmed to create cognitive distortions of the perception of winning, intended to keep the consumer engaged and losing money,” says the statement of claim filed by lawyer Ches Crosbie on behalf of VLT players.

“VLTs are inherently deceptive, inherently addictive and inherently dangerous when used as intended.” VLT class action proposal heard in St. John’s court

The class action was certified by Supreme Court of Newfoundland and Labrador Justice Alphonsus Faour in late December, allowing the claims to be argued in court.

The lottery corporation has yet to file a statement of defence.

The Atlantic Lottery Corporation has not filed a statement of defence to claims made by a VLT class action lawsuit filed in St. John’s. (CBC)

Classic con?

The lawsuit compares what the ALC does with VLTs to a classic street con, called three-card monte. It’s a sleight-of-hand game that dates back to at least the turn of the 15th century and prohibited by the Criminal Code .

“Three-card monte is a confidence game in which the victim, or mark, is tricked into betting a sum of money, on the assumption that they can find the ‘money card’ among three face-down playing cards. It is the same as the shell game except that cards are used instead of shells,” explains Tom Ogden in his book The Complete Idiot’s Guide to Magic Tricks .

Lawyer Ches Crosbie says up to 30,000 VLT players stand to be compensated if the lawsuit is successful. (Paul Daly/Canadian Press)

The plaintiffs’ lawyers, Ches Crosbie and Michael Dull, relied on evidence from Dr. Kevin Harrigan, an associate professor at the University of Waterloo, who studies problem gambling. ‘These games have been cheating Newfoundlanders for many years. ALC will finally have to answer for their cheating in court.’ – Doug Babstock, class action representative

He said VLT games offered by ALC are similar to three-card monte in so far as the players are deceived that they can win.

Faour cited Harrigan’s evidence in his decision to certify the class action.

“While the Criminal Code defines the game in very general terms, there is sufficient detail in Dr. Harrigan’s evidence to raise a connection with the game commonly known as three-card monte,” he wrote.

In the application for certification, VLT user Fred Small told the court that it’s commonly believed that the ALC is manipulating when games pay out and when they don’t.

“These games have been cheating Newfoundlanders for many years. ALC will finally have to answer for their cheating in court,” said class representative Doug Babstock in a news release from Crosbie’s law firm.

Ancient law cited for financial damages

If lawyers can prove that the lottery corporation used old tricks to deceive VLT users, they say an old law should be used to determine damages.

They claim the 1710 Statute of Anne, an Act for “the better preventing of excessive and deceitful gaming” applies in this case

Supreme Court of Newfoundland and Labrador Justice Alphonsus Faour says the class action will have to prove a 1710 statute still applies. (CBC)

The Act permits anyone who has lost money gaming to sue for and recover three times the value of the money they lost.

“The defendant rightly points out that the act may not be in force in the province at this time in history. The plaintiffs will have to make the argument for its applicability at trial,” wrote Faour.

Crosbie said as many as 30,000 VLT users in this province stand to benefit if a judge rules in their favour.