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By Nancy Bepple

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SOUND OFF: Province must rebuild trust between local governments, gaming industry

May 14, 2021 | 3:02 PM

LOCAL GOVERNMENTS ARE ALWAYS LOOKING for ways to fund operations. The largest portion are property taxes, but there are other revenue sources like the federal Gas Tax, payments from utility companies and fees for services.

One of the most reliable sources of funds for local governments are Host Local revenues from British Columbia Lottery Corporation (BCLC). Local governments with gaming facilities receive 10% of net revenue from casinos and other sites within their municipalities. The Host Local revenues are sizable.

In 2019-20, BCLC gave $93.5 million in payments to local governments who had gaming facilities in their municipalities. For example, Kamloops receives about $1.9 million per year from BCLC, Kelowna receives about $1 million and Nanaimo about $2.7 million.

The Host Local revenues are considerable. For example, the amount Kamloops receives each year is equivalent to an average tax increase of 2.5 per cent. Receiving the Host Local revenues keeps Kamloops property taxes lower for everyone.

So last week, when the City of Saanich rejected a casino in its borders, it was not just saying no to a gaming facility. Saanich said no to between $2.5 to $3 million per year of future revenue.

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Saanich City Council voted unanimously against a casino in their city. City council members raised issues around money laundering and the negative effects of gambling addictions. Council did not think that the benefits of the casino would outweigh the costs.

The decision of City of Saanich shows that BCLC has a long way to rebuilding trust. The long saga of money laundering still haunts them.

And how could it not? Large bags of money were brought into casinos with little or no oversight. The gaming enforcement branch was crippled by the BC Liberals under the direction of then-Minister Rich Coleman. Money laundering at casinos has been linked to organized crime and escalating real estate prices in the Lower Mainland.

And worst of all, no one has been held accountable. At the current Cullen Commission inquiry, former Premier Christy Clark and Minister Rich Coleman have given lackluster testimonies. They have done nothing to instill confidence that anyone will be held accountable. Mea culpa does not seem to be in anyone’s vocabulary.

Here in Kamloops, BCLC is seen in favorable eyes. It is one of the city’s largest employers, and provides well paying, stable employment to hundreds. BCLC has sponsored Music in the Park at Riverside Park every summer for decades. It supports a myriad of community organizations.

But elsewhere in the province, that may not be the case. Before Saanich, in 2019 the City of Victoria also rejected a casino. In 2013, the City of Surrey rejected a casino. In 2011, the City of Vancouver has rejected a casino expansion as well.

All is not well with gaming in B.C. If local governments don’t even feel comfortable hosting a casino in their community with guarantees of millions per year in revenue, then there is a far deeper sense of unease with how gambling operates in our province.

The City of Saanich’s decision last week is the canary in the coalmine. Regardless of who is or isn’t willing to take responsibility for the casino money laundering travesty, BCLC and their overseers, the provincial government, have a long road ahead in rebuilding trust in how gaming operates in our province.

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Editor’s Note: This opinion piece reflects the views of its author, and does not necessarily represent the views of CFJC Today or the Jim Pattison Broadcast Group.