City places limit on slots

By Richard Rolke - Vernon Morning Star - May 28, 2008

Lake City Casinos’ expanded operation could be in contravention of bylaws as a result of council actions. On Monday, council proposed limiting the number of slot machines within the city to 300 despite Lake City planning for 400 machines in its Anderson Way outlet, which is currently under construction. “If there is a plan to allow us to move ahead while being legally non-conforming (to bylaws), it doesn’t affect us,” said Steve Kumpf, the company’s vice-president of operations. However, Kumpf admits that such a policy could create challenges if Lake City ever wanted to install more than 400 slot machines. City staff insists council’s decision to limit the number of slot machines in Vernon to 300 doesn’t derail Lake City’s activities. “They can probably do 400 machines and be legally non-conforming because that’s what they showed in their plans,” said Leon Gous, chief administrative officer.

The goal of the proposed bylaw, which must go through a public hearing, appears to be placing pressure on Lake City to provide money for a social responsibility fund. “It could give us the ability to say what’s in it for the community?” said Gous of council possibly sanctioning 400 slots. Lake City has previously indicated it won’t finance a social responsibility fund, and Kumpf is questioning the city’s strategy. “Making us non-conforming to solicit more money when they’ve approved us (building permit and relocation) doesn’t make sense,” he said. Coun. Barry Beardsell favoured a limit on slots, saying Lake City must justify the need for so many machines. “It (300) is more than they have now,” he said, adding that gambling creates significant negative challenges for individuals, families and the community.

“The matter of a social responsibility fund must be resolved.” Opposition to limiting the number of slot machines came from Coun. Jack Gilroy. “We are taking the right away from other businesses to have slot machines,” he said. “The business is viable and the city gets quite a bit of money from it.” The city currently receives about $1.2 million a year in casino revenue under provincial legislation. That figure is expected to increase once the new casino opens.