POLICY REPORT
DEVELOPMENT AND BUILDING

Date: February 16, 1999

Authors/Locals:

JForbes-Roberts/7205

MLee/6034

RTS No. 540
CC File No. 2633-1

TO:	Vancouver City Council
FROM:	Director of Community Services, Social Planning, and the Director of Community Planning, in consultation with the Director of Legal Services and the Chief of Police
SUBJECT:	Provincial Report on Gaming Legislation and Regulation in British Columbia

RECOMMENDATIONS

A. THAT Council receive for information the “Key Implications of the Province’s White Paper on Gaming” attached as Appendix A, outlining the proposals and implications of the proposed new Provincial gaming legislation;

B. THAT the City undertake a public consultation process as outlined in this report to obtain citizen input to Council’s response to the Provincial “Report on Gaming Legislation and Regulation in British Columbia” by March 15, 1999;

C. THAT Council allocate a maximum of $15,000 from the Contingency Reserve to fund the public information and consultation process;

D. AND THAT the “Casino - Class 1 Guidelines”, adopted by Council October 7, 1997, which include relocation and size guidelines, be amended to include the following additional guideline:

“Until the Provincial Government enacts new gaming legislation, and City Council has been advised by staff of the impacts of the legislation on gaming in the City, no expansion in size or relocation of the existing casinos should be permitted.”

CITY MANAGER’S COMMENTS

The City Manager RECOMMENDS approval of the foregoing.

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 1, 1994, Council passed a resolution opposing gaming expansion including the introduction of video lottery terminals (VLTs) in charity casinos and licensed drinking establishments, the expansion of electronic bingo, and an increase in the number of charity casinos in the City of Vancouver or in adjacent areas where the City could be impacted, and furthermore, that the City of Vancouver consider gaming expansion a matter of determination by the people of British Columbia through appropriate broad and local involvement in a meaningful consultation program.

· On October 22, 1996, Council passed a resolution: THAT the Director of Legal Services bring forward an amendment to the business by-law to prohibit the operation of electronic gaming devices, including CLUB KENO, as defined in the previous amendment dealing with video lottery terminals in liquor licensed establishments; and Council reiterated its concern over the lack of consultation on gaming expansion; and as Council authorized, a delegation of the Mayor and Council met with the Minister responsible for Gaming to communicate Council’s position.

· 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 April 22, 1997, Council strenuously objected to the Provincial Government’s approval of an increase in the betting limits and expansion of gaming hours within the Greater Vancouver Regional District; and further requested the Provincial Government to reverse both those decisions and to hold discussions on gaming with municipalities.

· On October 7, 1997, Council adopted amendments to the Zoning and Development By-law to permit a limited number of charity-operated casinos in certain areas of the city and to prohibit casinos with slot machines.

PURPOSE AND SUMMARY

This report provides Council and the public with a summary of the proposed new Provincial gaming legislation and its implications for the City of Vancouver as outlined in the attached discussion paper “Key Implications of the Province’s White Paper on Gaming”. The report also recommends that a public consultation process be undertaken to obtain citizens’ input into the proposed legislation and that funding be provided to undertake this work. Amendments to the City’s current guidelines regarding the approval of casinos are also recommended.

BACKGROUND

The City of Vancouver has a long-standing policy against further expansion of gambling in the city due to concerns about social and neighbourhood impacts. Of particular concern was the introduction of slot machines into gaming facilities in the city. This led, in 1997, to the adoption of amendments to the City’s Zoning and Development By-law that created two classes of casinos. “Casino - Class 1" is a charity-operated facility which does not have slot machines. These are permitted in several commercial and industrial zones in the city. However, Council adopted guidelines to limit the number of charity casinos in the city to five and the size of each casino to 1 500 m² (16,150 sq. ft.). “Casino - Class 2" is a casino which has slot machines and is not permitted anywhere in the city. The City’s authority to regulate casinos and prohibit casinos with slot machines has been upheld in two recent court challenges.

DISCUSSION

Provincial White paper on Gaming: Recently, the Provincial Government released the “Report on Gaming Legislation and Regulation in British Columbia”. Part 1 contains the white paper on gaming; Part 2 contains the proposed “Gaming Control Act”. The government expects comment back from municipalities by March 15, 1999.

This is a lengthy document which provides background on the legal framework for gaming, government policy on gaming, social and enforcement issues, as well as draft legislation. The proposed legislation will have a very significant impact, eliminating the City’s ability to control the expansion and relocation of Vancouver’s five existing casinos, including the addition of slot machines.

Staff have prepared a discussion paper, “Key Implications of the Province’s White Paper on Gaming”, which is attached as Appendix A. It briefly summarizes the key recommendations as well as the land use, social and policing implications of the white paper and draft legislation.

Proposed Consultation Process: Staff recommend that the attached discussion paper be made available to the public to inform citizens of the Provincial proposals. Staff also recommend that a consultation process be undertaken in order to allow citizens an opportunity for input in advance of Council’s response to the Province.

Time is very short; only four weeks remain for citizen and municipal government response. Staff recommend that the availability of the attached discussion paper be advertised, and that Vancouver citizens be urged to express their opinion on the proposed gaming legislation, either through written response to Council, or through participation at public meetings held by Council.

To cover the costs of advertising meeting dates and availability of the discussion paper, and meeting room and printing costs, staff recommend that a maximum of $15,000 be allocated from contingency reserve.

Amendments to Casino - Class 1 Guidelines: If approved, the proposed legislation would permit the Minister responsible for gaming to override municipal control of casinos and permit the five existing casinos in the city to expand and include slot machines. The City would also have no control over where they relocate.

The Minister has asked for public comment before enacting the legislation. In the meantime, current casino operators may wish to expand or relocate in anticipation of the new legislation. Until the new legislation is enacted and the implications are clear, staff recommend that the current guidelines for the approval of Casino - Class 1 be amended to not permit any expansion in size or relocation of any of the five existing casinos in the city. This is set out in RECOMMENDATION D.

CONCLUSION

Gambling and gambling facilities have extensive social and neighbourhood impacts. The proposed new Provincial legislation removes these from local municipal control. The attached discussion paper and proposed consultation process set out in this report enable the citizens of Vancouver to be informed of the proposed new legislation and provide input to Council’s response to the Province.

* * * * *

(c) 1998 City of Vancouver