MONTREAL — Quebec's gaming commission faces a potentially crippling payout as gambling addicts try to hold it responsible for downplaying the dangers of video lottery terminals.

A class-action lawsuit brought by a group of pathological gamblers is seeking compensation from Loto-Quebec for their addiction treatments.

With the plaintiffs claiming around 119,000 gamblers can trace their addictions to VLTs, a judgment could cost Loto-Quebec upwards of $500 million, excluding exemplary damages.

"Despite the fact that studies on the dangers of pathological gaming and its treatments were known, the defendant didn't consider its obligation to warn users of the dangers of dependence," the statement of claim reads.

None of the lawsuit's claims has yet been proven.

After several years of legal wrangling, the trial phase of the case will finally begin in Quebec Superior Court next month in Quebec City.

Launched in 2001 by Jean Brochu, a lawyer and recovering gambling addict , the lawsuit cites government reports that claim VLTs have been tied to pathological gambling.

Loto-Quebec denies such a link exists and says problem gambling should be considered a personal health issue rather than one of legal liability.

"At the current time, there exists no expert, recognized by his peers... who proposes that VLTs are the cause of pathological gambling," the defence statement reads.

The Quebec government began to regulate VLTs in 1993. Before then, Loto-Quebec estimated there were between 25,000 and 50,000 black-market gambling machines operating in the province.

Now there are around 12,000 VLTs in the province's casinos, bars and restaurants.

Brochu maintains that when the machines were introduced, they were equipped with misleading warnings about the dangers of addiction.

"In using the message 'In moderation a game remains a game,' the defendant puts the responsibility of pathological gambling on the user," the lawsuit states.

Loto-Quebec counters that it has better tailored its messages over time and increasingly invests in resources for problem gamblers.

But regardless of whether its arguments eventually hold sway,  Loto-Quebec's activities and the ethical dilemmas surrounding them will once again be in the spotlight.

A court decision last year forced the gaming commission to release documents about gambling-related suicides at Quebec casinos.

The documents, which Loto-Quebec fought hard to keep secret, provided a grim look at what has become an important revenue stream for the government.

Last week, Quebec's newly appointed health minister reiterated some of the unease public officials have about state-sanctioned gambling.

Yves Bolduc said both the government and Loto-Quebec should take additional measures to fight problem gambling.

He floated the idea of cutting the number of VLTs in poorer areas of the province.

Loto-Quebec promised in 2004 to remove some 1,142 VLTs by 2007, but has acknowledged it is still short of that goal.

The gaming commission contributed $1.6 billion to government coffers in 2006-07.