Smith defended the use of Video Lottery Terminals as a source of government revenue, and rejected a 2003 proposal from Progressive Conservative MLA John Loewen to phase out most terminals from the province. Loewen argued that the machines brought a huge social burden upon Manitoba; Smith responded that the province had taken steps to combat gambling addiction and was introducing machines with responsible gaming software. He also noted that Manitoba received $232 million annually from lottery revenues, and argued that the money was necessary to fund social programs.