City eyes casino for cash

By Richard Rolke - Vernon Morning Star - January 30, 2008

The City of Vernon is attempting to squeeze more money out of Lake City Casinos. Council decided Monday to pursue increasing the business licence for gambling enterprises after Lake City Casino refused to voluntarily provide the city with money for social issues. “They are washing their hands of a social responsibility fund,” said Coun. Barry Beardsell, who led the charge. Currently, a $20 licence is paid for each slot machine, and while Beardsell isn’t sure what the amount should increase to, he believes the city needs about $90,000 a year. “We’ve really got to push these people for funding for social responsibility,” he said, adding that some of the money would go towards gambling addiction services.

Opposition came from Coun. Jack Gilroy, who fears Lake City Casinos will cut back on other spending if licence fees are hiked. “They put a tremendous amount of money into the community through sponsoring events,” he said. Gilroy also pointed out that the city currently receives $1.8 million annually in casino revenue and that’s expected to increase when Lake City Casinos moves to larger premises. “We are going to get more money from the casino any how so if we want to pay for things, take it out of that,” he said.

City staff approached Lake City Casinos last week about supporting a social responsibility fund, but the answer was no. “I have reviewed the request and confirm it is not possible for us to make this commitment,” said Steve Kumpf, vice-president of operations, in an e-mail to the city. “We are spending capital of $14 million on this (expansion) project and given our commission structure with the province, the economics just do not support any contribution over the near term.” Kumpf goes on to say that the city already receives a cut of the casino revenue and Lake City Casinos financially supports events such as Funtastic, Vernon Winter Carnival and the Okanagan Wine Festival. “Many of our employees also volunteer their personal time to assist with the events we support as well,” he said. No one from Lake City Casinos could be reached for comment.