Tuesday, May 27, 2008

City Puts a Limit on Slot Machines

In a long delayed 5-1 vote (Gilroy against, Baumbrough absent) the City has placed an upper limit of 300 slots machines in the City of Vernon.

The newly relocated Casino that will open in the fall has indicated that they will have 400 slot machines, 6 table games, 2 poker tables and 2 electronic tables with a 70 seat pub-style restaurant/bar and a stage area for entertainment. The building permit (that has not yet being published on the City's website ?) apparently was taken out and stated that they will have 400 slot machines. When the business license is amended at the opening to the actual number of slots in place, this will grandfather the Lake City Casino into a legal non-conforming position that they will be allowed to maintain but not change without returning to Council for permission.
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The Council failed to limit the number of table games to the existing 8 tables that are at the present casino and this will increase to 10 with no City Limit imposed yet. The discussion that Destination Casinos have more than 500 slots put forward by some Councillors was bogus. Presently the 3 remaining Destination Casinos have the Following configurations:
  • Cranbrook-- 225 slots--11 tables--revenue of $14,362,294 (2007 Fiscal)$1,534,266 Host
  • Penticton ---224 slots--11 tables--revenue of $27,196,038 (2007 Fiscal)$2,543,797 Host
  • New West---341 slots--18 tables--revenue of $35,342,654 (2007 Fiscal)$3,399,656 Host
  • Vernon------210 slots--8 Tables--revenue of $28,540,144 (2007 Fiscal)$1,763,005 Host
The only real difference between a Community Casino like Vernon and a Destination Casino is the sharing of the take. A Destination Casino picks up 16 2/3% of the net take for the host Government while a Community Casino is limited to 10% of the net take. This is allowing the Province to extract an extra 6 2/3% or roughly $1,175,924.
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This limiting of the Slots in Vernon will place Vernon in a better negotiating position when any further expansion or modifications are needed at the Casino. A Social Responsibility Fund may yet be negotiated ?

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