Casino Service Provider Commissions
B.C.’s casino operations model was developed in 1997 when the provincial government announced a new gaming policy and issued a Request for Proposal—Destination and Charitable Gaming Facilities in the Province of British Columbia (RFP). The compensation structure was for a total commission of 28 per cent of net win from slots and 43 per cent net win from table games (net win = revenue after prizes paid/won by the player). The 28 per cent commission is divided into two parts—25 per cent operating commission, three per cent Facility Development Commission (FDC). The 43 per cent commission from table games is also divided into 402 per cent operating commission and three per cent FDC. This compensation structure is captured in the Casino Operational Services Agreement (COSA), which are typically 10 year contracts with a renewal option for an additional 10 years. The COSA defines service, operating and marketing responsibilities for the casino company and forms the basis for the 25 and 40 per cent per cent operating commission. It also defines the requirements for earning the three per cent FDC.
The three per cent FDC can be earned by the service provider if they incur costs related to casino and ancillary amenities development based on BCLC guidelines, subject to BCLC review and approval. Since taking responsibility for casino gambling in 1998, BCLC’s vision for gambling facilities in B.C. has been to build fewer, bigger, better facilities with comprehensive entertainment amenities such as restaurants and lounge areas. In 2006, BCLC added the Accelerated Facility Development Commission (AFDC) of two per cent of net win. Service providers designate a one-time project to qualify for AFDC and may only do so once in the lifetime of the facility.
1 comment:
How did Vernon receive more than they were entitled to?
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