Casino Fund No Go

Starlee Speers, Astral Media Radio - Vernon

The Vernon city council decision to approve the casino expansion before negotiating for more money is coming back to haunt them. Councillor Barry Beardsell says, neither Lake City Casino or the Provincial government have any reason to give the city any extra money for a social responsibility fund. Beardsell says, if the city is still unable to get money for a social responsibility fund then they should raise the licencing fee for the slot machines. Councillor Jack Gilroy defended himself against Beardsell's criticisms saying, Lake City is a good corporate sponsor in Vernon and they shouldn't be gouged. Council voted to meet with MLA Tom Christensen to discuss the issue.

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City To Seek More Gambling Revenue by Pete McIntrye KissFM

Vernon will look into having its main gambling outlet declared a 'Destination Casino' The city will be setting up a meeting with MLA Tom Christensen to find out more about the process of getting a bigger chunk of the gaming revenue from Lake City Casino. Councillor Patrick Nicol says Vernon would be a logical choice. "And if we were able to get that destination assignment, then we would be eligible for additional funds, as I understand it, but I'd like to be clearer on that, from the (BC) lotteries." Councillor Barry Beardsell says the city should have sought a bigger percentage of the revenue before it approved Lake City's relocation to larger facility last year, when it had some leverage. "As far as I'm concerned, they (city) have no leverage because the administrator already went to Lake City to try and get some additional money for the social responsibility fund and they said absolutely no, even though the entire cost of that building is ultimately going to be paid on a gradual basis, 100 percent out of the earnings from the casino."
Beardsell says the extra money could be used to help the struggling O'Keefe Ranch.

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Don Quixote Note: Last year every slot machine in Vernon brought in $130,000 each. We have allowed this franchise to double the number of slots from 200 to 400. Now most of this money goes to the provincial government but the Casino makes a good return from operating this franchise. All their capital expenses are 100% recoverable from the Province. The City voted to place $50,000 each year from their increased revenues from this casino into a Social Responsibility Fund to offset the negative affects of addiction etc. To suggest that the Casino is being gouged for not seeing the public relations and advertising value to agreeing to match this amount each year is ridiculous. The Casino is a "Good Corporate sponsor" for those events where this sponsorship attracts customers to their Casino. (This is called good Corporate Business practice !)

A casino in Vancouver offered as a community benefit to place $200,000 each year in such a fund and this fund has been in existence in that City since 2005.