Friday, January 18, 2008

Casino cash squeeze receives little support

By Richard Rolke - Vernon Morning Star - January 18, 2008
A Vernon politician believes the city should be trying to get more cash out from an expanded casino. Coun. Barry Beardsell proposed Monday that the business fee for casinos be increased from $20 per slot machine. “The business licence would be a way to get a social responsibility fund out of the scenario,” he said. Construction of the new 30,000-square-foot Lake City Casinos outlet is underway on Anderson Way. The number of slot machines would go from 210 to 400. Beardsell’s plan could have seen the money go to policing and programs related to gambling addiction. However, increasing the licence fee generated no support from his council colleagues.

“We are already getting $1.8 million in casino revenue and it will increase,” said Coun. Jack Gilroy. “That would be gouging and I don’t believe in gouging.” City staff are currently in discussion with Lake City Casinos over financial issues. Because of that, Coun. Pat Cochrane is unwilling to consider increasing licences at this time. However, Cochrane is adamant that Lake City Casinos should be willing to provide additional funding to the city because it will make more money off an expanded site. “We’d like something more tangible that we can funnel into community support such as gambling services,” he said.

The rest of council was also unwilling to support a proposal from Beardsell that the number of slot machines be restricted to 210.“We have a letter from our lawyer saying we can’t do that,” said Gilroy. The legal opinion received by the city indicates that because council has already approved the relocation and expansion of the casino, it would be difficult to limit the number of slots now. Beardsell stands behind his proposal. “The community can regulate the number of slot machines in the community,” he said.“We don’t have that control in place in the city and I am suggesting we put that control in place.”
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Don Quixote Note: I attended this meeting and disagree about the level of support for the proposal of Coun. Beardsell. 
At this meeting the council had little debate on whether they would increase the license fee. The matter was deferred as the Administrator was having a meeting the next day with the Casino manager to try to persuade him to at least match the $50,000 annually that the City's taxpayers would be putting up for a Social Responsibility fund. A community benefit offered by the Casino directly would be a public relations and promotional opportunity that could be showcased annually on City Hall steps with a huge novelty cheque. (Just think of the photo op). My impression was that council wished to take the high road and built up a matching Social Responsibility Fund rather than merely extract the required matching monies by raising the business fee. With this in mind the matter was deferred awaiting a report back to Council at the next Open Council Meeting  on the 28th.
I have great confidence that the Casino and the new Australian owners will see the merit and public relations benefits that will accrue and will agree to an annual contribution when they meet with our Administrator.

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