Loss of gambling cash hurting municipalities
Even so, B.C.’s health officer says casinos last on her list when it comes to reopening the economy
A lengthy closure of B.C.’s casinos and gaming centres would deprive local governments and community groups of millions of dollars in gaming revenue and grants.
But despite that reliance on gambling revenue, provincial health officer Dr. Bonnie Henry has said casinos are last on her list when it comes to reopening the economy.
“I would have to be convinced that there’s a valid reason and a safe way to do it, and I think that’s something that’s for further down the line,” Henry said.
“It’s certainly not in the first phase of what I’m considering, or what we’re considering in terms of how do we get things moving again in our economy and in our social structures.”
Casinos, community gaming centres and bingo halls closed across the province on
March 16, following a directive from the provincial government.
Most of the industry’s 10,000 workers were laid off.
In the 2018-19 fiscal year, the B.C. Lottery Corp. delivered $1.4 billion to the province, $982 million of which came from casinos and community gaming centres. Each year, about $249 million in gaming revenue is distributed to charities and local governments. Figures for this year aren’t yet available.
Local governments that host casinos and community gaming centres receive 10 per cent of the net casino gaming revenue from operations in their jurisdictions. Across B.C., municipalities received more than $98 million in gaming revenues in 2018-19, and have collected more than $75 million in the first three quarters of this fiscal year.
In discussions with the Union of B.C. Municipalities, local governments identified the loss of variable revenues, including from gaming, as a significant financial challenge resulting from COVID-19.
Richmond received more than $16 million last fiscal year — the largest amount of any municipal government — and $11.4 million in the first three quarter of this fiscal year. Mayor Malcolm Brodie said it’s too early to tell what kind of effect the closure of River Rock Casino will have on revenue, but the city won’t be in dire financial straits.
“The expression is that it’s easy for a government to get addicted to gambling, and that’s what will happen if you put that right into your operating budget. So, what we tend to do is we keep the gaming funds separately and we use them for one-time expenditures,” Brodie said.
Smaller communities will have a harder time absorbing the losses.
New Westminster Mayor Jonathan Coté says the city is losing about $500,000 each month that the Starlight Casino is closed. The city uses the revenue to pay down debt on infrastructure projects.
Non-profits and groups that receive money from municipalities aren’t the only community organizations that will take a hit. Local, regional and provincial non-profit organizations and school and district parent associations can apply for community gaming grants and capital project grants each year. In the 201819, about $140 million was granted to these organizations.