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Casino closures taking toll on municipal revenues

With no set date on when the province will allow casinos to reopen, the losses are adding up for communities that benefit from the proceeds of gambling.
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The slot machines at Elements Casino Victoria in View Royal.

With no set date on when the province will allow casinos to reopen, the losses are adding up for communities that benefit from the proceeds of gambling.

Elements Casino in View Royal, the capital region’s major gambling hub, has been closed for three months amid the COVID-19 pandemic, but is preparing reopening plans under provincial guidelines. It sent out surveys this week asking guests on its mailing list to rank safety priorities — including entrance screenings and limiting guests and numbers of slot machines and gaming tables.

Casinos can be lucrative for local governments, as host municipalities receive 10 per cent of net gambling income. In Greater Victoria, that translates into more than $4.3 million a year, which is shared among seven West Shore municipalities and two First Nations. View Royal, with a population 10,408, gets about $2.3 million because the casino is in the town.

View Royal Mayor David Screech said Wednesday the town has already lost between $1 million and $1.5 million with the closure of Elements over the past three months. The revenue stream is only available when the casinos are operating.

“Budget-wise, it’s critical to View Royal,” said Screech.

While he said the municipality has always been careful not to use casino proceeds for operating costs, decreased funding could affect some capital projects, community grants and funding for West Shore Parks and Recreation.

“Obviously, we would like to see the casino open, but public safety is paramount,” Screech said. “We will respect what [provincial health officer] Dr. Bonnie Henry has to say, because many of the people who frequent casinos are considered high risk.”

Henry said in early May that casinos would be last on her list for reopening, citing the high numbers of seniors and those with underlying health issues who visit the facilities. Casinos were listed in the fourth phase of B.C. reopening plan, with no set dates, along with large sporting events, conventions, night clubs and international travel.

The B.C. Lottery Corporation manages lottery, casino, bingo and online gambling on behalf of the province. Last year, BCLC generated more than $1.4 billion to support provincial programs, communities, charitable and community organizations.

Spokeswoman Erica Simpson said in an emailed statement Wednesday that BCLC is working with its service providers to develop plans for reopening B.C. casinos, once the provincial health officer deems it appropriate to do so.

“While we are watching and learning from the experiences of other jurisdictions, BCLC will continue to follow directions and guidance from the provincial health officer as we develop proposed measures that are appropriate for our context in B.C.”

Most casinos in Alberta started opening on Friday as part of that province’s second phase of reopening its economy. Alberta Premier Jason Kenney had originally included casinos in the third phase of reopening in the fall.

Alberta casinos are required to follow strict health guidelines, including the constant cleaning of slot machines.

Plastic barriers are being erected between slot machines, and some won’t be used to ensure proper distancing.

Distancing signage and one-way markings are required on the casino floors. Table games such as roulette or blackjack are not being allowed to increase space for distancing.

BCLC said its plans include reconfiguring seating at slot machines and table games to ensure a two-metre distance between players. Plastic barriers will be installed where this is not possible or where casino employees, such as dealers or cash-cage staff, must interact with players. Casino employees will also monitor capacity to ensure that physical distancing is maintained.

Simpson said BCLC and casinos will provide free hand sanitizer to players and refill stations will be located throughout facilities.

She said ongoing sanitization of touch points and gambling equipment, such as dice, are priorities.

To minimize touch points, BCLC said only table games in which cards can be dealt face up will be allowed, and players will not be permitted to touch cards.

B.C. casino staff will also be required to undergo training in enhanced-sanitation requirements and physical-distancing protocols.

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