By Jeff Nagel - Surrey North Delta Leader - May 02, 2008
Critics are warning a fresh wave of gambling expansion is underway as area cities agree to put slot machines into revamped bingo halls. The conversion of the halls into so-called community gaming centres with slots is a key strategy of the B.C. Lotteries Corporation (BCLC) to replace declining bingo revenue and ring up higher gambling profits for the province. Surrey is the latest city to consider allowing slot machines into its bingo hall. Mission opened the Lower Mainland's first community gaming centre last summer with 75 slot machines under the "Chances" brand name. Councils have approved similar centres with slots in Langley Township (opening this summer) and Abbotsford (fall 2008). And BCLC officials confirm talks are underway in both Chilliwack and Maple Ridge to prepare applications to local councils for consideration.
The centres typically offer paper and electronic bingo, 50 to 150 slot machines, restaurants and lounges – in essence a junior casino with bingo instead of table games."They are de facto mini-casinos," said Bill Chu of the Multicultural Coalition Against Gambling Expansion. "To pull the wool over peoples eyes, they call it a community gaming centre. "Sometimes people think it's just a larger bingo hall, but it's not. What they're trying to do is stuff it with slot machines. There are currently 5,018 slot machines in the Lower Mainland – an extra 862 came on line when New Westminster's Starlight Casino opened in December.
If six community gaming centres with 100-plus slots open in the region by 2010, it will be the equivalent of adding another major casino, but dispersed into a series of smaller venues in local neighbourhoods. Chu argues they will cause increased gambling addiction, social problems and homelessness. "Obviously this kind of thing is targeting local people, not the tourist," he said. Surrey gambling critic Sue Reid calls the community gaming centres "little satellites of hard-core gambling hidden in unassuming small buildings" that will bring slot machines "right into our residential areas."
The provincial government increasingly relies on gambling revenue. By 2010 Victoria aims to collect more than $1.2 billion a year from gambling – more than all corporate income taxes it receives. Profit from community gaming centres is projected to soar from $108 million in 2007-08 to $284 million by 2010, while the current $121 million from existing bingo halls dwindles to almost nothing within a couple of years. But it's not just the provincial government critics accuse of being addicted to gambling profits. Cities also get their cut – 10 per cent of slot machine revenue. Lower Mainland cities raked in $55 million from casinos last year (Richmond collected the most with $12.8 million from River Rock).
And the community gaming centres put more money on the table. The five largest slot-equipped centres in the Interior or Vancouver Island generated $500,000 to $1 million in the past year for their home cities.The money is a tempting source of new income for city councils trying to balance their books, expand services and avoid tax hikes.
Local charities that get bingo funds usually campaign for slots. Although they can still apply to the province for grants under the Direct Access program if their bingo hall closes, most prefer the certainty of multi-year funding that comes from their current affiliations.Chu finds it bizarre that those helping groups that combat social problems back expanded slot machine gambling."It's corrupting even the very charitable nature of charities," he said. "The very organizations that are supposed to be doing good."
He said gambling opponents face an uphill battle at public hearings because the gaming companies organize supporters, sometimes bringing busloads of their own employees in from neighbouring cities. Burnaby and Coquitlam rejected the addition of slots at local bingo halls, however the Burnaby hall did convert to a community gaming centre without slots. BCLC spokesman
Greg Walker said there's no further sites being considered other than the six sites now being opened or proposed for community gaming centres.Those centres plus the new Villa Casino being built in Burnaby may push the Lower Mainland close to its gambling capacity, he acknowledged."Obviously casinos the size of Starlight and Burnaby are going to have an impact on consumer demand," he said.Once the Villa opens next year, Walker said, BCLC will conduct a marketplace assessment before contemplating any further gambling venue expansion. "That will give us a good idea where we want to go next in terms of gaming service in the Lower Mainland."
Existing bingo halls are seeing revenues fall because their traditional patrons are aging and players are shifting away from paper bingo.Another factor expected to hammer bingo revenues is the April 1 provincial ban on smoking in public places, Walker said. Pressure for bingo conversions have also come because of falling bingo revenues due to local casino expansions.
Bingo operators in Langley in part cited a loss of patrons to the new Cascades Casino there and Fraser Downs in Cloverdale for their need to add slots to shore up revenue. The Liberals were originally elected in 2001 on a platform that in part promised to "stop the expansion of gambling that has increased gambling addiction and put new strains on families."
There were 2,400 slot machines province-wide then. Today there are 8,941, of which more than 1,100 are in the existing dozen community gaming centres. "They broke their own promise and they broke it big time," Chu said. Solicitor General John van Dongen won't admit that promise was broken or explain exactly how and when the aggressive addition of slots became government policy. "There has certainly been a shift in what people are interested in," he told Black Press. "It's something of a generational shift. That's why you're seeing some shift from the traditional bingos to the community gaming centres."He said the number of casino and bingo licences in B.C. hasn't grown. He maintains any changes in the "gaming product" is up to BCLC subject to approval by local cities and the province doesn't force the conversion of bingo halls to community gaming centres. "If people in a region as represented by their city council don't want that kind of facility they can choose not to have one," van Dongen said. "If a succession of local governments don't want a facility in a region, then it won't happen." He said he doubts all six potential new gaming centres will be built.The increasing number of slots in the region comes despite a government-led study that last year found most Lower Mainland residents near casinos believe gambling harm outweighs the benefits.But Van Dongen says the percentage of BCLC customers considered problem gamblers remains fixed at 4.6 per cent. "B.C. has the third lowest per capita gaming spending in Canada," he added. "Although revenues are up the amount of money people spend on gambling is actually below average in Canada."
Bingo hall slots: Who holds 'em, who folds 'em
YES
- Mission – Chances centre with 75 slots opened last summer.
- Langley – Recently approved by council, opens this summer. Slots capped at no more than 150.
- Abbotsford – 125 slot limit set by city; to open this fall.
NO
- Burnaby – Slots were vetoed by council but bingo hall converted to community gaming centre without slots.
- Coquitlam – Bingo hall conversion was voted down on community concerns and proximity to new Boulevard Casino.
UNDECIDED
- Surrey – Application now being considered, majority of council has indicated tentative support.
- Maple Ridge – Great Canadian Gaming is buying local bingo operation and wants to build new community gaming centre downtown. No specific application has come to council yet. BCLC must still approve sale to Great Canadian. BCLC must still approve sale to Great Canadian.
- Chilliwack – Conversion proponents have identified a potential site, but no application is before the city yet.
CITIES CONTROL:
- Whether slots are allowed
- Any cap on the number of slots permitted.
- Whether centre gets a liquor licence to serve alcohol. BCLC says liquor service is "not contemplated" at Abbotsford and Langley.
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