The Marketing Trust Account was implemented between BCLC and Casino Service Providers who are provided with more than 300 slot machines. Under the terms of the Casino Operational Services Agreement (COSA), Service Providers are required to contribute to this account for the purpose of funding casino marketing programs promoting the Corporation’s casinos in a socially responsible manner. In the event that the amount contributed to the Trust Account by the Casino Service Providers in any fiscal year of BCLC commencing April 1, 2006 is not expended on marketing programs promoting the casinos by the last day of the following fiscal year of BCLC, any such balance shall be repaid to the Casino Service Providers.
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From a Posting of Dec 10 2007:How much is spent by the Province for advertising and casino promotions and is it a fixed percentage that recently has been raised? (answer is: On April 1, 2006, the joint marketing fee increased from 0.75% to 1.5% of net win, which amounted to an increase in marketing and promotion expenses at the Burnaby Casino of $325,000 in the six months ended June 2007 from the same period in 2006. These funds, as well as those paid by other operators, are placed in a joint marketing fund held by the BCLC to promote BC’s casino industry, both within and outside the province. Of the Fund’s casinos, the Burnaby Casino and Cascades Casino are the only two casinos that currently contribute to this fund. )
Vernon's Lake City Casino will probably have to contribute the 1.5% of net win if expansion and relocation is approved.
I had calculated the Casino operators share at $8,205,832 million or 28.75% of the gross win of $28,540,144. A 1.5% promotional contribution will be $123,087
Perhaps the BCLC will give up the increase and allow the Casino to pay 1/2 of this money to the City of Vernon Annually for a Social Responsibility Fund ? This would go a long way towards a satisfactory annual contribution by the Casino operator towards the public benefit that is asked from all developers.
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