Glasshouse Capacity Services Society
Gaming History Report – Draft May 17 2016
As this document progresses we will update
Gaming History – the Criminal Code of Canada
In order to discuss and understand the current issues facing non-profits in BC it is necessary to go back and
understand how we got to this place.
At one time the Federal government regulated Gaming in Canada as is their responsibility under the Canadian
constitution.
Gaming was a core fundraising vehicle for many charities and religious groups who held bingos raffles and casino
nights for the entertainment and the good of the community. The funding was essential to many core services
and charitable endeavors in the community. The way in which charities disbursed the gaming funds was per
their incorporation and charitable mandate and mission regulations and under the direction of community
boards.
There was horse racing and fairs and exhibitions that were also licenced by the federal government under the
minister of agriculture.
The link below to the report published in the Osgoode Hall Law Journal in 1988 “The legal Recent Amendments
to Canadian Lottery and Gaming Laws: The Transfer of Power between Federal and Provincial Governments” by
Judith a. Osborne and Colin S. Campbell challenges the legality of the transfer of the federal government’s
power to the provincial government with respect to gaming.
The report notes that little if any public consultation was done around changes to the criminal code to allow the
transfer. Full report available at the link below, and worth reading.
http://digitalcommons.osgoode.yorku.ca/cgi/viewcontent.cgi?article=1825&context=ohlj
We Quote the abstract here at the beginning of the report, as follows:
“Abstract
Through an examination of recent amendments to the lottery and gaming provisions of the Criminal Code and of
the law reform process involved in those amendments, this article demonstrates the unique structure of
Canadian gaming laws and challenges the constitutional validity of provincial regulation as an interdelegation of
power.”
The federal Criminal code sections- Criminal Code – Gaming and Betting 200,
202,204,205,206,207,208,209
Link to criminal code:
http://laws-lois.justice.gc.ca/eng/acts/C-46/page-49.html#docCont
An excerpt here of the criminal code which says that all the forms of gambling are illegal
with the stated exceptions. There were changes made to the criminal code to allow
provinces to enter into gaming.
“207 (1) Notwithstanding any of the provisions of this Part relating to gaming and betting, it is
lawful

(a) for the government of a province, either alone or in conjunction with the
government of another province, to conduct and manage a lottery scheme in that
province, or in that and the other province, in accordance with any law enacted by
the legislature of that province;

(b) for a charitable or religious organization, pursuant to a licence issued by the
Lieutenant Governor in Council of a province or by such other person or authority in
the province as may be specified by the Lieutenant Governor in Council thereof, to
conduct and manage a lottery scheme in that province if the proceeds from the
lottery scheme are used for a charitable or religious object or purpose;”
A View from Ontario
The Alcohol & Gaming Commission of Ontario Annual Report 14/15 included the following
information
“LEGAL FRAMEWORK – GAMING Criminal Code of Canada The Criminal Code of Canada (the
Code) establishes what types of gaming activities are legal, and the provinces are assigned
responsibility for operating, licensing and regulating legal forms of gaming. Part VII of the Code
prohibits gaming in general, while Section 207 (1) allows for a number of exceptions to the general
prohibition. Specifically, it permits lottery schemes provided that they are: • Conducted and managed by
the province or by an agent of the Province, which in Ontario is the Ontario Lottery and Gaming
Corporation; • Conducted and managed by a licensed charitable or religious organization provided that
the proceeds of the lottery scheme are used for a charitable or religious purpose; and • Conducted and
managed by a licensed board of a fair or exhibition or by an operator of a concession leased by that
board or by a person at a public place of amusement where the prizes and wagers are limited to small
amounts set out in the Code. “Lottery schemes” are broadly defined under the Code but exclude a
number of specific schemes, including single sports events, thereby making betting or wagering on such
schemes illegal in Canada, and pari-mutuel betting on races, which is permitted for horse racing
elsewhere in the Code. The definition also effectively reserves the conduct and management of lottery
schemes using electronic devices or computers to the Provinces or their agents, subject to a recently
exception. In December 2014, the Code was amended to allow the use of computers for the sale of a
ticket, selection of a winner or the distribution of a prize in a raffle, including a 50/50 draw, if the raffle
is conducted and managed by a charitable or religious organization in accordance with other
requirements in the Code. In consultation with stakeholders, the AGCO will be developing standards
and requirements in respect of the use of computers for raffles. (Sec. 207(4)). Gaming Control Act, 1992
The Gaming Control Act, 1992 (GCA) provides for the regulation of gaming operations, suppliers and
gaming assistants/employees of casinos, slot machine facilities, charitable gaming events, and
registration of OLG lottery retailers, lottery retailer managers, and lottery suppliers. Ontario
Regulation 78/12 applies to all the gaming sectors under the AGCO’s responsibility (i.e. charitable
gaming, casinos, slot machine facilities and lotteries conducted and managed by the OLG, as well as the
new internet and electronic charitable gaming products that are being developed by OLG).”
The document prepared by the Law commission of Canada called “the legalization of
Gambling in Canada” is available at the link below. Our excerpt from the executive summary
as follows:
Canadian criminal law in regard to gambling has been used principally to consolidate and legitimize a
provincial government monopoly over gambling as a revenue generating instrument. This, of course,
begs the fundamental question of whether or not this is an appropriate use of criminal law
Link: http://publications.gc.ca/collections/collection_2008/lcc-cdc/JL2-64-2005E.pdf
Another short read regarding history of gambling is the following link from the University of
Calgary but uses BC as the study:
http://prism.ucalgary.ca/bitstream/1880/315/2/Non_Profits_and_Gambling_Expansion.pdf
The growth of Gaming in BC is demonstrated by one company perhaps the largest
player as follows:
History - Great Canadian Gaming Corporation
1982 – Great Canadian Casino Company Ltd. Is formed and
begins operating temporary charity casinos in a variety of
locations, often training staff on-site, and operates the PNE’s
casino and midway games at the annual fair.
1986 Great Canadian opens its first permanent location, The
Casino at the Holiday Inn on Broadway in Vancouver on February
21, 1986.
Great Canadian Casino opens Nanaimo Casino, The first
permanent casino on Vancouver Island in the summer.
1987 Great Canadian Casino hires it’s first employees May 1,
1987. BC Gaming Commission is formed. The red lion Casino
opens in Victoria. The Richmond Casino opens. The Langley
Casino Opens.
1988 – The Guildford Casino Opens
1992 – The Mayfair Casino Opens, The Langley Casino Closes.
1994 - The Renaissance Casino in Vancouver opens. The
Guildford Casino Closes transferring its license to the Newton
Casino.
1997 – Gamin gin BC is Expanded to include longer hours, a
wider variety of table games, and for the first time – slot
machines. Great Canadian Gaming Corporation was created
March 15, 1997. Great Canadian Casinos Inc. was incorporated
July 1997.
1998- the Charity casino system is replaced and BC lottery
Corporation assumes oversight of all casinos in the province.
1999 The Red Lion Casino in Victoria closes. The Nanaimo Casino
is relocated.
2000 – no smoking in BC casinos as of January 01, 2000.
2001 – at Canadian opens two new properties in BC, View Royal
Casino in Victoria and Coquitlam Casino in Coquitlam. Mayfair
Casino in Victoria closes December 2001. Newton Casino in
Surrey closes November 2001.
2004 – Great Canadian trades on the Toronto Stock Exchange.
Great Canadian opens River Rock Resort in Richmond,
establishing a new standard for entertainment in BC. The
Company also enters the horseracing industry, acquiring the
historic Hastings Racecourse in Vancouver. Great Canadian
acquires Bear Mountain Community Gaming Centre in Dawson
Creek. Great Canadian Acquires 100% control of Great American
Gaming Corporation and their 4 Casinos in Tukwila, Everett, Kent,
And Lakewood in Washington state. The Richmond Casino and
the Renaissance Casino close transferring licenses and
operations to River Rock Casino Resort.
2005 – Great Canadian Expands across the country, acquiring
Casino Nova Scotia with two properties in Halifax an Sydney; and
two racetracks in Ontario, Georgian Downs and Flamboro Downs.
IN BC, Great Canadian Acquires Fraser Downs Racetrack &
Casino in Cloverdale. River Rock Casino Resort expands, adding
a four diamond hotel of two towers and 1000 seat show theatre.
The Coquitlam Casino completes a significant redevelopment,
becoming Boulevard Casino and nearly tripling in size.
2006 – Bear Mountain Community Gaming Centre relocates to a
new location and becomes Chances Dawson Creek Community
Gaming Centre.
2007 – In conjunction with the closure of the Casino at the
Holiday Inn on Broadway. Fraser Downs Racetrack & Casino adds
table games to its gaming options.
2008 – Great Canadian acquires Haney BingoPlex in Maple Ridge,
BC. Great Canadian completes the redevelopment o Hastings
Racecourse, adding a 600 slot permanent gaming facility.
2009 – River rock Casino Resort welcomes the Canada Line,
Vancouver’s newest mass transit system, and completes
extensive enhancement including Canada’s only curved
escalators, Georgian Downs adds gaming capacity. View Royal
Casino Expands adding a parkade and additional gaming space.
2010 – Haney Bingo Plex expands with the addition of 100 slot
machines becoming Maple Ridge Community Gaming Centre
following a renovation, Casino Nanaimo rebrands.
2011 Great Canadian expands River Rock Casino Resort adding a
third, four diamond, hotel tower.
2012 - Chilliwack Bingo relocates to a new location and becomes Chances
Chilliwack. Fraser Downs Racetrack & Casino opens their Poker Room in
Surrey, BC.
2013 - Canada's one and only Hard Rock Casino Vancouver opened its
doors on December 20, 2013, following a multi-million dollar renovation
and rebranding of the Boulevard Casino. Maple Ridge Community Gaming
Centre relocates to a beautiful new location and becomes Chances Maple
Ridge.
2014- On December 20th,
2014 Hard Rock Casino Vancouver celebrates and marks its one year anniversary
River Rock Casino Resort has a lot to be proud of, as the property celebrates its
Diamond Anniversary commemorating the opening of a one-of-kind entertainment
destination that has forever changed the gaming experience in British Columbia
2015-Fraser Downs Racetrack and Casino to undergo a multi- million Dollar
Renovation
Great Canadian introduces Shorelines Casino brand to Ontario for the gaming
properties at Thousand Island, Kawartha Downs, and potentially, in the City of
Belleville. New table games, slots, dining features await guests at unveiling of
Elements Casino December 17th, 2015 following a multi-million dollar renovation
Trouble in River City
I recall in the 80’s when charities had to supply volunteers to go to casinos and participate in a
cursory way in order for it to be legal to operate. It was like going to the wine makers and
stirring the wine because by law you were making the wine. The casino could not operate or
even open without the volunteers. We worked the casino night with jobs like cashiers and we
collected the proceeds from that nights earnings. Then without discussion all of a sudden it
changed and the government was going to pool the earnings and give grants to the non-profits
but you had to apply and make your case hat in hand, the world was changing, a pattern was
emerging.
It was then that an uprising of community organizations across the province mounted a
campaign and the result was the formation of the BC Association for Charitable Gaming and a
letter of understanding between the government and representatives of the non-profit sector.
At the time Bingo operations were a large part of the gaming pie, charities were against VLT’s
in Gaming halls as it was predicted that VLTS would cause bingo revenue to go down, and the
prediction turned out to be true. The once popular bingo evenings that many enjoyed and
earned money for community groups has been replace by other forms of gambling.
I remember clearly when Gaming expansion by the BC government proposed Break open
tickets. The program to expand into break open tickets was sold to the public (as usual) on the
social contract that charities and communities would benefit. Charities and non-profits were
offered an opportunity to benefit from the sale of break open tickets, all they had to do was
market the program. We accepted the challenge, we hired people, we bought break open
dispensing machines, we leased break open machines, we built processes and administrative
functions we spent millions upon millions investing in the program. The organization I was CFO
with had invested about one half million just in machines and had 7 people on staff working on
the project. Of course this program was only for those groups who could afford such an
investment. The majority of the small non-profits could not compete, and this fact was one the
provincial government was very much aware.. We were set up in a very nasty way. The
program had barely got off the ground and the Provincial government announced that they
were taking the program back citing that it wasn’t an equal playing field for all groups. They
offered us nothing accept depreciated value of our machines that hung on walls across the
province. We of course fought, and won only a lease takeover agreement, a payment for
depreciated machines and 6 months projected revenue. The pubs and establishments were
promised a larger percentage of the revenue and of course the government got the rest and
charities got nothing.
The Numbers
We prepared a worksheet of the gaming revenues and how they are disbursed in BC on the next page
In the recent years The BC Government has tried with some success to eliminate some subsectors of
the non-profit community, adult arts and culture, heritage, environment. Valiant efforts by some
groups opposition gained some ground. Alliances formed with cities and municipalities to halt gaming
expansion seemed to get government attention. However when the dust settled in 2011 the revenue
dropped from 160.1 Million to 135.0 Million and ever since that time the grant amount remained the
same while other recipients of gaming funds are growing. Let’s take a close look at the worksheet. Just
prior to 2005 the amount was determined by a percentage and it was 33%. There was a letter to the
BCGCA committing to that percentage of the Casino and Community Gaming which included bingos
and raffles. The letter follows the worksheet on the next page and is part of the City of Vancouver
Administrative Report that discusses the Policy agreement between the Provincial Government and
the UBCM Union of BC Municipalities. The UBCM was supportive of the community Groups entitlement
to gaming proceeds.
The Worksheet on the next page shows that from 2005 to 2014 the net Gaming revenues in total grew
43% but the “Casino and community Gaming” Revenues grew 63%. The non-profit share is based on
percentages of the “Casino and Community Gaming” Revenue and while this has increased 63% the
non-profit share has decreased from 25% to 16%. The plateauing of the non-profit share while total
revenues grow result in the percentage drop for non-profits each year.
In 2005 there were 6800 grants to community groups in 2014 only 5000 groups were funded. There are
more applications each year adding pressure to the government to find a granting process that will
eliminate enough groups to fit the capped revenue of 135 million.
Horse Racing Purse Enhancements received a total of 69 Million over the 10 years on the chart below,
this is a subsidy to for-profit entities like Great Canadian Casino. The question needs to be asked why
they cannot invest in their own business with the millions they make and make it profitable. While
charities and non-profits are struggling the province is allocating funds to billion dollar corporations.
I’m not sure that the Canadian criminal code allowed for that.
REVIEW OF HISTORICAL GAMING PROCEEDS AND ALLOCATIONS FROM BCLC ANNUAL REPORTS
Figures in Millions
Year Ended March 31,
2014
Revenue - Lottery & eGaming
304.1
26%
298.2
26%
278.9
25%
289
26%
268.6
25%
258.3
24%
263.9
24%
283.5
28%
273.2
30%
284.7
35%
Casino & Community Gaming
870.5
74%
829.4
74%
828.5
75%
815.6
74%
812.4
75%
834.3
76%
825
76%
735.3
72%
649.5
70%
534.1
65%
922.7
0.126893
818.8
Total Revenue
2013
1174.6
2012
1127.6
2011
1107.4
2010
1104.6
2009
1081
2008
1092.6
2007
1088.9
2006
1018.8
2005
Disbursements
Percentage of Casino and Community Gaming
Community Organizations percent total REV
****
16%
16%
16%
17%
20%
19%
135.0
11.5%
135.00
12.0%
135.0
12.2%
135.0
12.2%
160.1
14.8%
156.3
14.3%
Payment to Host Local Governments
87.3
7.4%
84.1
7.5%
83.1
7.5%
82.3
7.5%
81.9
7.6%
83.8
Local Economic Development (DAC)
9.4
0.8%
22.1
2.0%
11.6
1.0%
10.9
1.0%
5.6
0.5%
9.1
18%
20%
148.1
13.6%
144.5
14.2%
7.7%
83
7.6%
76.1
0.8%
18.8
1.7%
16.5
25%
137.8
14.9%
134.5
16.4%
7.5%
65
7.0%
53.3
6.5%
1.6%
3.4
0.4%
2.9
0.4%
Accounting adjustment (DAC)
Horse Racing Purse Enhancements
21%
0
-11.3
8.9
0.8%
7.0
0.6%
10
0.9%
10
0.9%
6.9
0.6%
6.5
0.6%
5.7
0.5%
5.2
0.5%
4.6
0.5%
4.2
0.5%
Gaming Policy and Enforcement Branch
12.7
1.1%
12.3
1.1%
13.2
1.2%
13.1
1.2%
14.6
1.4%
15.9
1.5%
13.7
1.3%
10.4
1.0%
10.6
1.1%
11.4
1.4%
Responsible and Problem Gambling Prog
6.2
0.5%
5.5
0.5%
5.6
0.5%
5.3
0.5%
5.2
0.5%
5.4
0.5%
5.4
0.5%
4.3
0.4%
4.5
0.5%
3.1
0.4%
BC Government Programs Health Special acct
147.3
12.5%
147.3
13.1%
147.3
13.3%
147.3
13.3%
147.3
13.6%
147.3
13.5%
147.3
13.5%
147.3
14.5%
147.3
16.0%
147.3
18.0%
Consolidated Revenue Fund
758.5
64.6%
705.1
62.5%
692.4
62.5%
691.8
62.6%
650.7
60.2%
659.6
60.4%
658.4
60.5%
606.1
59.5%
541.3
58.7%
465.4
56.8%
9.2
0.8%
9.2
0.8%
9.2
0.8%
8.9
0.8%
8.7
0.8%
8.7
0.8%
8.5
0.8%
8.4
0.8%
8.2
0.9%
8
1.0%
Government of Canada Transfer Agreement
Total Disbursements
1174.5
variance in report states
1174.6
1127.6
1107.4
1104.6
1081
1092.6
1088.9
1018.8
922.7
818.8
ADMINISTRATIVE REPORT
Date: June 29, 1999
Author/Local: Mario
Lee/6034
RTS No. 839
CC File No. 2633
Council: July 6, 1999
TO:
FROM:
Vancouver City Council
Director of Community Services, Social Planning, in consultation with the
Director of Legal Services
Gaming Policy Agreement
SUBJECT:
INFORMATION
THAT Council receive this report for information.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services presents this report for
information only.
COUNCIL POLICY
· On January 27, 1987, Council asked the Attorney-General to begin a review of the
regulations governing the operation of casinos as soon as possible, and that the City, and
other concerned groups and individuals be given the opportunity to express in detail their
concerns and suggestions for improvements. Council also expressed its concern that
revisions to casino gambling regulations adhere to basic principles including that the
maximum financial benefits accrue directly to the social service agencies sponsoring the
events; and that appropriate, strict controls be in place to discourage or prevent possible
negative social consequences, such as compulsive gambling or criminal activity.
· On July 26, 1994, Council requested that the Provincial government ensure that there will
be municipal participation in the evaluation of community impacts for any expansion to
gaming activity, including video lottery terminals, gaming on First Nations lands and
major casinos. Council further requested that gaming legislation or regulations include
municipal endorsement of specific gaming
locations prior to approval, and that approval of any new gaming activity be conditional on
a portion of the revenue being available to local government for mitigation measures.
· On November 1st, 1994, Council passed a resolution opposing gaming expansion
including the introduction of video lottery terminals (VLTs) and, that the City of
Vancouver considered gaming expansion a matter of determination by the people of British
Columbia through appropriate broad and local involvement in a meaningful consultation
program.
· On March 25, 1997, Council reiterated its demand to the Provincial Government for a
comprehensive Gaming Act before expanded gaming activity goes forward. Council
further advised the Minister of Municipal Affairs and the Minister of Employment and
Investment that Vancouver opposes the addition of slot machines as an expanded gaming
option.
· On October 7, 1997, Council adopted amendments to the Zoning and Development Bylaw to permit a limited number of charity-operated casinos in certain areas of the city and
to prohibit casinos with slot machines.
· On March 9, 1999, Council responded to the Provincial White Paper on Gaming,
reiterating its stand on the preservation of municipal powers on issues surrounding
gambling expansion.
PURPOSE AND SUMMARY
The purpose of this report is to inform Council about the Memorandum of Agreement on
Gaming Policy between the Union of British Columbia Municipalities (UBCM) and the
Provincial Government, signed on June 17th, 1999. This report briefly analyses the implications
to the City of Vancouver arising from this agreement.
BACKGROUND AND DISCUSSION
On February 2, 1999, the Provincial Government released the "Report on Gaming Legislation
and Regulation in British Columbia", containing the White Paper on Gaming and a proposed
"Gaming Control Act".
The Provincial report provided background on the legal framework for gaming, government
policy on gaming, social and enforcement issues, as well as draft legislation. The proposed
legislation would have had a very significant impact on municipalities, such as eliminating the
City's ability to control the expansion and relocation of Vancouver's five existing casinos and
allowing for the addition of slot machines.
On March 9, 1999, Council responded to the provincial government. The City's response to the
Minister in charge of gaming had six components:
· Municipal Jurisdiction
· Social Implications
· Economic Implications
· Implications to Charities
· Policing Implications
· Public Meetings and Public Comments
The UBCM responded on April 15, 1999. The UBCM response raised similar issues and
concerns to those raised by the City of Vancouver.
Memorandum of Agreement on Gaming Policy
On June 17th, 1999, upon having reviewed the more than 150 submissions commenting on the
White Paper on Gaming, the provincial government agreed to sign a Memorandum of Agreement
between the Province and UBCM (Appendix A).
Memorandums of Agreement were also signed with the B.C. Association for Charitable Gaming
(BCACG) and the Charitable Bingo Association Committee of the Bingo Council of B.C.
(Appendix B).
The Memorandum of Agreement on Gaming Policy between the Province and UBCM, lays out a
series of principles that will govern the relationship between the Province and UBCM with
respect to gaming issues, until gaming legislation is introduced. Some of the highlights are:
· The Province affirms the jurisdiction of local governments, specifically with respect to their
land-use and by-law making powers.
· The Province affirms the ability of local governments to make decisions as to whether new
facilities or re-located facilities will be permitted within their boundaries.
· The Province affirms the ability of local governments to direct and define the extent, scope and
type of casino and bingo gaming permitted within their boundaries, including the acceptance or
rejection of slot machines.
· The Province will share gaming revenue with local governments as set out in the White Paper.
In Vancouver, this means 10% of the net income from local casinos.
· The Province will consult in a meaningful way with local government regarding the form and
content of gaming legislation before it is introduced into the Legislature.
· The UBCM intends to actively work with the Province in the development of comprehensive
gaming legislation.
This Agreement clearly satisfies many of the concerns expressed by Vancouver City Council in
its response to the provincial White Paper on Gaming. Traditional municipal powers over land
use and by-law making have been supported.
Charities
The provincial government signed another Memorandum of Agreement on Gaming Policy with
two charity organizations, namely, the B.C. Association for Charitable Gaming and the
Charitable Bingo Association Committee of the Bingo Council of B.C.
Some of the highlights of the agreement with charities are:
· The Province affirms the role of licensed charities as the sole beneficiaries of bingo gaming,
including both paper and electronic bingo;
· The Province will pursue changes to the gaming provisions of the federal Criminal Code to
facilitate bingo charities having exclusive domain over all bingo activities;
· The province reaffirm its commitment to the existing charity guarantee of a minimum of $125
million annually;
· The Province affirms that the "public foundation" licencing model recommended in the White
Paper will not be pursued.
This agreement satisfies most of the charities' concerns with the changes proposed in the White
Paper on Gaming. One of the outstanding concerns from some of the bingo halls relates to their
ability to sustain their customer base considering that casinos with slot machines attract many of
the same customers. At present there are two casinos with slots, one in Burnaby, one in New
Westminster and a third one (river boat) to be open in New Westminster in September, 1999.
Existing Vancouver casinos
The announced agreement has satisfied most of the City's demands. Casino operators, however,
are not satisfied. Casino operators have wanted an even playing field for all casino operations,
independent of their location. Many casino operators feel that this announcement leaves the five
Vancouver based casinos in a position of disadvantage. Casinos in other jurisdictions such as
Burnaby and New Westminster enjoy a full complement of casino games, including slot
machines, while Vancouver based casinos don't have slot machines.
It is possible that some of the Vancouver casinos may seek relocation in municipalities that will
accept slot machines. From the perspective of casino operators, however, this doesn't deal with
the fact that a good portion of the Lower Mainland casino customers reside in the City of
Vancouver, and that market considerations may not permit for all of them to relocate to other
municipalities. Many of the casino operators have also incurred in significant capital investments
in their facilities, even though they have known Council's policies regarding expansion, all along.
Staff anticipate requests from existing Vancouver-based casinos to relocate within the City of
Vancouver.
The five existing casinos in Vancouver employ about 1,000 employees with an annual payroll of
around $25 Million. It is not known how many of those employees reside in the city of
Vancouver, and whether any reduction in employment in Vancouver will be absorbed by job
enhancements in casinos elsewhere in the region.
Revenue Sharing
With respect to the share of gaming revenue, the White Paper on Gaming (page 223) indicates
that the 10% of the net earnings from the casino operations within the City's jurisdiction, will be
paid on an automatic and ongoing basis, effective April 1, 1999. Payments should be made
quarterly, in arrears, and a fiscal year-end reconciliation should be provided to each local
government. The share of the revenue will be paid to the benefit of the host local community and
under the Memorandum of Agreement between the Province and the UBCM, without requiring
the adoption of a Council resolution.
We are not certain yet about the exact amount of the City's share of gaming revenue. During the
1998/99 fiscal year, the City's share would have amounted to approximately $5 Million dollars.
However, casino revenue from Vancouver's casinos is going down as customers go to casinos
with slot machines in adjacent municipalities. It is anticipated that the Province will officially
inform the City on the exact amount to be distributed in the near future.
CONCLUSION
As a result of City Council's persistent assertion of its right to control gaming in Vancouver -a
position that was then taken by UBCM - the provincial government has finally recognized the
historical municipal powers to regulate gaming facilities within their boundaries. Staff will
continue to work with UBCM, charity organizations and industry representatives in order to
assess any future developments.
-----
This document dated for reference the 17th day of June 1999.
Memorandum of Agreement
On Gaming Policy
Between:
The Union of BC Municipalities (UBCM)
-andThe Government of British Columbia (the Province)
The Province and UBCM have agreed to govern their relationship with respect to gaming issues
according to the following principles:
The Province:
· affirms the jurisdiction of local governments, specifically with respect to their land-use and bylaw making powers;
· affirms the ability of local governments to make decisions as to whether new facilities or relocated facilities will be permitted within their boundaries;
· affirms local government's ability to direct and define the extent, scope and type of casino and
bingo gaming within their boundaries. It also affirms the ability of local government to decide
whether slot machines or other similar devices could be placed within their boundaries;
· will provide an independent and transparent selection process for new and re-located gaming
facilities;
· will share gaming revenue with local governments as set out in the White Paper;
· will share gaming revenue with local governments that host gaming facilities, regardless of
their stated opposition to gaming, and without the adoption of a Council/Board resolution;
· will consult in a meaningful way with local government in the development of gaming policy
changes that may affect local governments;
· will consult in a meaningful way with local governments regarding the form and content of
gaming legislation before it is introduced into the Legislature;
· will ensure that charities are guaranteed an ongoing source of revenue from gaming and that
eligibility rules for this funding will be maintained;
· will ensure there is a legislative mechanism for consultation / mediation with adjacent
communities; and
· reaffirms its commitment that video lottery terminals will not be permitted in British Columbia.
The UBCM intends to:
· actively and cooperatively work with the Province in the development of comprehensive
gaming legislation.
The Province and UBCM intend to:
· bring resolution to existing and future disputes through negotiations, where possible, and in a
manner consistent with the principles of this Agreement.
These principles will govern the parties' actions with respect to gaming henceforth, and until
legislation consistent with these principles is passed in the Legislature.
___________________ _____________________________
John Ranta Honourable Jenny Kwan
President of UBCM Minister of Municipal Affairs
This document dated for reference the 17th day of June 1999.
Memorandum of Agreement
On Gaming Policy
Between:
The B.C. Association for Charitable Gaming (BCACG)
The Charitable Bingo Association Committee of the Bingo Council of B.C.
(Signed on June 18th, 1999)
-andThe Government of British Columbia (the Province)
The Province and the BCACG (and the Charitable Bingo Association Committee) have agreed to
govern their relationship with respect to gaming issues according to the following principles:
The Province:
· affirms the role of licenced charities as the sole beneficiaries of bingo gaming, including both
paper and electronic bingo;
· affirms that charities have exclusive domain over all bingo activities, subject to licencing by the
Gaming Commission, and subject to the provisions of the federal Criminal Code;
· will pursue changes to the gaming provisions of the federal Criminal Code to provide greater
legal certainty for the continuing key role of licenced charities in charitable gaming;
· will pursue changes to the gaming provisions of the federal Criminal Code to permit the broad
use of technology in bingo by licenced charities, so that licenced charities can have exclusive
domain over all bingo activities;
· reaffirms its commitment to the existing charitable guarantee of a minimum $125 million
annually, indexed annually at the rate of Vancouver CPI, with a formula that ensures charity
entitlement to an amount, after accounting for retained bingo revenues, equal to 1/3 of ongoing
government net community casino gaming revenue;
· affirms that the existing bingo facility-level guarantee will remain in effect for an interim
period to be determined by the Gaming Commission in meaningful consultation with licenced
bingo charities;
· affirms that the British Columbia Gaming Commission is the sole licencing authority for
charitable gaming;
· affirms that the "public foundation" licencing model recommended in the White Paper will not
be pursued;
· will consult in a meaningful way with charities in the development of gaming policy changes
that may affect charities;
· will consult in a meaningful way with charities regarding the form and content of gaming
legislation before it is introduced into the Legislature; and
· reaffirms its commitment that video lottery terminals will not be permitted in British Columbia.
The BCACG (and the Charitable Bingo Association Committee) intends to:
· actively and cooperatively work with the Province, in the development of comprehensive
gaming legislation.
· Actively and cooperatively work with the Province in the support of negotiations with the
federal government to achieve changes to the gaming provisions of the federal Criminal Code as
contemplated in bullets three and four on the previous page.
The Province and BCACG (and the Charitable Bingo Association Committee) intend to:
· bring resolution to existing and future disputes through negotiations, where possible, and in a
manner consistent with the principles of this Agreement.
These principles will govern the parties' actions with respect to gaming henceforth, and until
legislation consistent with these principles is passed in the Legislature.
___________________ _____________________________
Robert MacInnes Mike Farnworth
President of BCACG Minister of Employment and Investment
Frank Garnish
Chair, Charitable Bingo Association Committee
Bingo Council of B.C.