By Richard Rolke - Vernon Morning Star - April 27, 2008
Restrictions could be placed on how many slot machines are allowed within Vernon city limits. Council will consider a staff recommendation Monday that would limit the number of slot machines in the community to 400. “Setting a limit at the current number of slots in the casino would put future councils in a better negotiating position in the event of another expansion and would effectively prevent creation of additional casinos,” states the staff report. However, Coun. Barry Beardsell insists the number should be set at 200. “That’s what the original restrictions were by the province,” he said, adding that 200 machines is about what Lake City Casino currently has at its Vernon operation. Lake City is constructing a new casino on Anderson Way and it would include 400 slot machines. Beardsell believes there is a need to reduce the number of slots. “It draws that much more money out of our economy,” he said of expanding gambling. “There is a loss of funds to the economic well-being of our community and an impact on lives and families.”
Officials with Lake City Casinos would not comment on the proposal going before council Monday. “I want to take a look at it and see what they are calling for,” said Steve Kumpf, vice-president of operations. The city presently receives a share of casino revenue under provincial legislation, but Beardsell argued that additional money should be sought for a social responsibility fund. The majority of council opted not to pursue funds prior to approving relocation of the casino, and Lake City has since indicated it will not provide extra money. Council instructed staff Jan. 28 to look at increasing business licenses for casinos, but it appears like doing so is legally questionable. “In order for the city to collect additional business license fees, the fees would need to be directly connected with the cost of providing a service related to the regulation of said business,” states a staff report. “The city’s position is weakened by the fact that it already receives substantial funds through the casino, the allocation of which is not restricted. Should council wish to start a social responsibility fund, it should be funded by existing revenue sources.” The provincial government, which owns the slot machines, is exempt from business license fees.
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Don Quixote Note: My comments on this can be found at: Slot Machine
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