Council can unlock revenue source at Hard Rock casino, but it comes with a price
Jon Willing, Ottawa Citizen
Published on: May 17, 2017 | Last Updated: May 17, 2017 6:14 PM EDT
Blackjack could be the city’s golden ticket to reducing the snow-clearing deficit or property tax increases, but municipal politicians would need to be willing to take a bigger risk on government-sanctioned gambling.
Council holds the cards that largely determine the future success of Hard Rock Casino Ottawa, which will emerge on the Rideau Carleton Raceway property over the next three years.
The city-imposed limit on gambling capacity at the site – a maximum of 1,250 slot machines and 21 table games – will almost certainly come up as Hard Rock works on its $320-million upgrade of the entertainment centre and casino.
It would eventually start with a request from Hard Rock, although chairman Jim Allen indicated this week that the company doesn’t anticipate moving quickly on addressing the municipal gaming restriction.
Council could get cold feet about another gambling debate, and maybe rightfully so. The last casino controversy, which was in 2013, was about where an expanded gaming house should be located in Ottawa.
Council voted 16-7 to keep gambling at the horse track, scuttling Eugene Melynk’s hopes of building a $500-million casino complex in Kanata.
With that issue put to rest, political minds will turn to the question of how much gambling should be in Ottawa.
Adding more poker and roulette tables to the revamped casino would increase the chances of council adding to the $5.6 million it expects to receive in hosting commissions this year.
So, council is possibly on course for another casino calamity: Should it get in the way of private business and a chance to boost its own coffers, or should it be mindful of public health and infrastructure concerns that come with expanding gambling options in this city?
Gloucester-Southgate Coun. Diane Deans opposes more gambling at the site and she questions creating a larger entertainment attraction on the raceway property, which she says isn’t the right location for such a complex.
“I think we have to remember that this is a rural area not served by public transit,” Deans said, underscoring her worry about the potential traffic increase in her ward.
Deans also shares concerns with Ottawa Public Health about feeding gambling addictions. The health unit in 2013 recommended that council not increase the availability of gambling, since around 13,000 people in Ottawa had already been experiencing gambling problems.
Increased municipal gambling commissions aren’t worth the risk, Deans said.
“I think it’s a problem that the government is addicted to gambling money,” she said.
Other councillors believe the city shouldn’t hold back Hard Rock from creating a bona fide casino when Casino Lac-Leamy is raking in money from Ottawa players.
“They should blow it right open,” River Coun. Riley Brockington said.
“If there’s going to be an upgraded casino at the race track, it should provide an assortment of casino games and options that will keep people in Ottawa and not see people travel to Hull to spend their money.”
Brockington said keeping money on this side of the Ottawa River is his main motivation when considering the casino, not the financial benefit for city coffers.
Stephen Rigby, the president and CEO of the Ontario Lottery and Gaming Corp., said gambling capacity in Ottawa is in the hands of city hall.
“The city has approved certain table games, certain slot levels. I respect those decisions and I think there will be a conversation going forward at the appropriate time,” Rigby said this week. “We’ll contribute to that if we’re asked, but at the end of the day it’s the city’s judgement we will abide by.”
The OLG will be there to offer input on economic impact and the social responsibility of gambling, Rigby said.
Health implications will likely play a major role in any decision on adding table games or slot machines to the Hard Rock casino. Council already failed to have influence on the operating agreement between the OLG and Hard Rock.
OLG spokesman Tony Bitonti confirmed Wednesday that council’s health-related recommendations from 2013 aren’t in the contract.
Council wanted restrictions on electronic gaming machines, loyalty programs, automated teller machines, credit accounts, maximum bet sizes and alcohol on the casino floor. In addition, council didn’t want a new casino to be a 24-hour operation.
Bitonti said Hard Rock will continue to work with the city as the company develops the site plan and he highlighted the company’s awards on responsible gambling initiatives.
Council in 2013 also considered directing 6.5 per cent of the city’s gaming commission to help the public health unit fund gambling prevention programs, but the majority of politicians voted against the idea.
The health unit warned that if council increased gambling there would be higher costs for addiction treatment and a greater need for outreach programs.
Bay Coun. Mark Taylor said concerns about health impacts clearly outweigh the financial potential of increasing gambling in Ottawa.
The city also shouldn’t expand gaming to simply get a bigger cut of the gambling revenue, Taylor said.
“I wouldn’t be supportive of gaming expansion, period,” he said. “Government is not a business. We’re not here to make money.”
jwilling@postmedia.com
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