Tag Archives: Edgewater Casino

Facts – History of the casino issue at City Hall

Posted on March 7, 2011 | 1 comment

These are the facts: Whatever Premier Campbell has said, whatever PavCo has said, an expanded casino at B.C. Place stadium has never been discussed or approved by Vancouver City Council.

The current City Council agreed on Oct. 22, 2009 that a casino was an approved use at B.C. Place (there’s already one across the street). BUT nowhere in the Oct. 22/09 policy statement was there any discussion about an expanded casino. The size of the casino was never debated.

The staff recommendation to amend the False Creek North Official Development Plan, approved at a Sept. 16, 2008 council meeting, made no mention of an expanded casino. Nor does the word “casino” appear anywhere in the minutes of the Sept. 16 meeting, or in the minutes of an Oct. 18 public hearing following it.

At the Oct. 18, 2008 meeting, in the heat of an election campaign, Council unanimously approved allowing “city- and region-serving cultural, recreational and institutional uses including consideration of the Vancouver Art Gallery as a use, generally as set out in Appendix A.”

Only in Appendix A do the words “expanded casino” appear, without any reference to the major policy change this entails, or definition of “expanded casino” or further discussion of this major change in city policy. The words in the appendix are: “Council may allow sub-area zonings to include other cultural and recreational facilities, including a major art gallery and a major casino that will also serve the city and region.”

Those zonings would have to be referred to a public hearing before becoming policy.

This in no way constitutes council approval for an expanded casino.

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Deloitte Report on the Edgewater mega-casino

Posted on March 2, 2011 | Comments Off on Deloitte Report on the Edgewater mega-casino

Please feel free to peruse Deloitte’s Economic Report – Entertainment Complex for yourself. Please note that the report states that its projection figures were derived from Paragon Gaming itself. These figures do not appear to have been independently assessed. We welcome any and all expert opinion on this report – either comment below or send us an email.

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Edgewater mega-casino fact sheet

Posted on March 2, 2011 | Comments Off on Edgewater mega-casino fact sheet

THE RAW FACTS ABOUT PARAGON GAMING’S PROPOSED EDGEWATER CASINO EXPANSION AT B.C. PLACE

ABOUT THE PROJECT

Connection with B.C. Place Stadium: direct link to stadium attendees, with a separated walkway directly to the casino from corporate suites.

Size of gambling space in the expanded Edgewater Casino: 2 football fields

Size of this casino compared to all casinos in western Canada: #1

Number of electronic slot machines in current Edgewater Casino: 520

Number of electronic slot machines in expanded Edgewater Casino: 1,500

Percentage of electronic slot revenues estimate to come from problem gamblers: 35%

Number of studies done in B.C. to determine the social, crime and financial costs of problem gamblers in this province: none

Cost of policing, addictions, suicides, fraud, courts related to problem gamblers using this casino: unknown

Estimated annual cost of a problem gambler from missed work, fraud, bankruptcies, receiverships, embezzlements: $13,200

ABOUT THE PROCESS

Date that B.C. Lottery Corporation chair Richard Turner buys shares in Paragon’s Alberta business: 2003

Date that Turner discloses that interest: 2005

Date that Turner resigns from BCLC board: late 2005

Date that Paragon Gaming purchases Edgewater Casino out of bankruptcy and installs Turner on the board of Paragon: summer 2006

Amount of donation by Richard Turner to B.C. Liberals while Paragon’s bid is awaiting a decision by Pavco in 2009: $50,000

Time between Pavco’s invitation to two short-listed companies responding to a request for expressions of interest in this $450-million project and its announcement of Paragon as the preferred proponent: less than 11 weeks

Normal time for big government projects to determine the best proponent, according to Partnerships B.C.: 12-16 months.

Number of minutes spent debating Edgewater’s expanded casino by Vancouver City Council: 0

ABOUT BROKEN PROMISES TO THE CITY OF VANCOUVER

Projected return of expanded Edgewater casino to City of Vancouver: $10 million in new revenue from gambling

Projected revenue to City of Vancouver from Edgewater’s original casino in 2004: $10-12-million in new revenues

Actual annual return of Edgewater Casino to City of Vancouver over the past two years: $6.3 million

Promise to arts groups and charities in 2004: increased funding
What charities got in 2010: 14% less than they got in 1995
What BC Lottery Corporation got in 2010: about three times as much revenue as 1995.

Promise to bingo players and their funding recipients in 2004: New Planet Bingo hall at Edgewater
Status of promise in 2011: Never delivered

ABOUT PARAGON GAMING

Number of slot machines in Paragon’s only Las Vegas operation, a sports bar: 15

Source of Paragon’s financing for Vancouver: unknown

Number of jobs promised by Paragon in 2010 bid for a casino in Missouri: 573

Number of jobs calculated by the Missouri Department of Economic Development for the same project: 280

Estimated annual revenue by Paragon in Missouri bid: $103.4 million

Estimated real new annual revenue calculated by the Missouri independent review of the same project: $21.7 million

Status of Paragon bids to build casinos in Sugar Creek, Missouri; Moncton, New Brunswick; Oxnard, California; and Ventura County, California: all failed

Answer of Unite Here, a union of 100,000 gaming workers across North America, to the question: “Is Paragon really the right company to take on this project?”: “no”

Disturbing event that occurred at Paragon’s Cree River Casino outside Edmonton in August 2010: customer murdered after a fight in a lounge that spilled outside.

ABOUT CRIME AND GAMBLING IN B.C.

The two best places to meet gangsters in B.C., according to Fred Pinnock, former Commander, Integrated Illegal Gambling Enforcement Team: in jails and in casinos

Hours of shifts of loan sharks at River Rock Casino revealed in Oct. 2006 murder trial of loan shark Lily Li: 24/7

Percentage increase in gambling-related crime reported by Richmond RCMP after River Rock’s establishment: 400%

Percentage of money-laundering and terrorism financing cases discovered in 2008-9 that took place in casinos, according to FINTRAC: 20%

Date that RCMP’s Integrated Illegal Gaming Enforcement Team issued a report to the provincial government warning of “extreme vulnerability” of casino industry to organized crime–money laundering, infiltration, loan sharking: January, 2009

Date that B.C.’s Integrated Illegal Gambling Enforcement Team was disbanded by the provincial government: February, 2009

Date that BC Lottery Corporation was fined $670,000 by FINTRAC for repeated failure to monitor suspicious transactions, the first fine of its kind in Canada: Summer, 2010

Number of dollars involved in suspicious cash transactions at 2 casinos in Metro Vancouver, including $460k in 20’s in plastic bags, and a suitcase with $1.2 million in casino chips, revealed by CBC in 2010: $8 million.

Reaction of Insp. Baxter, head of RCMP Proceeds of Crime Unit, to these transactions: “suspicious”

Reaction to these transactions of Rich Coleman, Minister of Public Safety and Solicitor-General, also in charge of raising revenues through gambling in B.C.: “not suspicious”

Number of sentences in Vancouver city staff’s 55-page report on the B.C. Place rezoning mentioning organized crime or money-laundering: 1

ABOUT THE ECONOMIC CASE

Amount listed in Deloitte report on this project as an annual capital payback from B.C. Lottery Corporation to Paragon: $16.9 million

Estimated increase in business over Edgewater’s current revenues: 180%

Percentage of North American casino customers who live within 45 minutes of the casino: 90%

Paragon’s estimate of the number of gamblers expected to come to Vancouver every day exclusively to gamble in the new casino and stay in its 648 new hotel rooms: 548.

Feb. 2011 comment by veteran hotel broker Angus Wilkinson on the demand for new hotels needed in the city: “This city doesn’t need another single hotel room.”

Amount that would have to be charged per night for a new hotel to survive financially in Vancouver, according to Wilkinson: $400/night

Average hotel room rate in Vancouver in 2010: $166/night

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Vancouver – Before and After Edgewater mega-casino

Posted on February 16, 2011 | Comments Off on Vancouver – Before and After Edgewater mega-casino


Above, before Edgewater mega-casino (and before the white stadium roof was replaced by spiky retractable roof). In the photo directly above, you can see the existing Edgewater casino which occupies the green glass building in the forefront, also known as the Plaza of Nations built for Expo ’86. The City plans to allow the demolition of this glass building. The new Edgewater Casino has triple the capacity of the current operation.

Below, planned Edgewater mega-casino butted up against the Cambie bridge end of BC Place Stadium. It looks as if the huge stadium girders have been downplayed in these drawings. Don’t be fooled; it’s enormous. It only looks modest because it’s adjacent to a massive stadium.

A picture is worth a thousand words. What are yours? Write the Mayor and Council and tell them what you think. Public hearings are this Thursday, Feb. 17, sometime after 7:30 pm, so don’t delay.

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Speeches by Bing Thom, Peter Ladner and Sandy Garossino

Posted on February 15, 2011 | Comments Off on Speeches by Bing Thom, Peter Ladner and Sandy Garossino

Three members of our Vancouver Not Vegas! Coalition speak out against the proposed Edgewater mega-casino.

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Our coalition’s presentations to Vancouver City Council on gambling expansion, February 1

Posted on February 1, 2011 | Comments Off on Our coalition’s presentations to Vancouver City Council on gambling expansion, February 1

Today several members of our Vancouver Not Vegas! Coalition are speaking to Vancouver City Council on the topic of general gaming expansion in the City of Vancouver. The opportunity to speak to Council has come as a result of a motion by Councillor Ellen Woodsworth, calling for further examination of gaming practices in British Columbia before the City of Vancouver proceeds with allowing further gaming expansion within its jurisdiction.

Our coalition is speaking in support of Councillor Woodsworth’s motion.

For presentations by Amir Alibhai, Sean Bickerton and Tom Durrie, read on. For a longer presentation by Sandy Garossino, click here.


Amir Ali Alibhai

January 31, 2011
Dear Mayor and Council:

The Alliance for Arts and Culture encourages Mayor and Council to adopt the
motion, moved by Councillors Woodsworth and Cadman regarding Casino
Development in our City. We have also been asked to speak on behalf of the
BC Association for Charitable Gaming (BCACG), which has submitted a written
submission. Together our organizations represent over 6,500 member
organizations and individuals. Motion B.6 addresses growing concerns in
this City and Province that Gaming has been expanded in an unchecked manner
and operates in a non-transparent and potentially conflicted way. The huge
revenues generated through this aggressive expansion have been attained on
the backs of charities, non-profits, municipalities and communities across
this province. In spite of this increase in revenues, the amount of funds
provided to charities and non-profits has decreased! We estimate that the
recent loss of funds to Metro Vancouver arts and cultural organizations will
be about $4 Million annually!

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Pete McMartin’s Series on BCLC and the Edgewater Casino

Posted on January 10, 2011 | Comments Off on Pete McMartin’s Series on BCLC and the Edgewater Casino

Pete McMartin of the Vancouver Sun has been working on a superb series of articles about the BC Lottery Corporation, the planned Edgewater mega-casino, and the way the BC government has been leaving charities out to dry—the very charities used by the BC government to justify its massive gaming expansion.

We will keep updating this list of articles by McMartin, so check back regularly.

Charities reeling from steady erosion of gaming grants

Huge gaming grant cuts don’t apply to BC Lottery Corp offices

How B.C. Lotteries came to pay $400 million to casinos

Is it time to take a step back from the gambling table?

Advice to B.C. charities: Move to Alberta


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Is the public, not the casino, in fact paying for BC Place Stadium roof?

Posted on January 9, 2011 | Comments Off on Is the public, not the casino, in fact paying for BC Place Stadium roof?


Press release today from the NDP. Some good questions were asked. Will Rich Coleman and the BC Liberals answer? Why is so much casino revenue being funneled right back to the private casino owners?

Spencer Chandra Herbert
Official Opposition Critic for Tourism, Culture, and the Arts
MLA, Vancouver West End
www.spencerchandraherbert.ca

B.C. NDP CAUCUS
MEDIA RELEASE
Jan. 9, 2011

B.C. LIBERALS MUST ANSWER ON SUBSIDIES FOR PROPOSED EDGEWATER CASINO EXPANSION – NDP

VANCOUVER — As residents of Vancouver prepare to formally weigh in on the proposed Edgewater casino expansion, the B.C. Liberal government must let the public know whether the casino is going to end up being subsidized by taxpayers even while gaming grants for community groups are being cut, the B.C. New Democrats say.

“The people of B.C. have every right to question whether the top priority for gaming revenue should be subsidizing private casino companies’ car parks and show lounges even while the B.C. Liberals are slashing funds for small charities that help seniors in need, youth engage through the arts, people learn to read, and adults with disabilities connect with their communities,” said New Democrat tourism and arts critic Spencer Chandra Herbert.

“British Columbians were told the proposed Edgewater casino expansion would pay for the $563 million B.C. Place roof project, but we now have to wonder if the public will actually be paying for the casino.The B.C. Liberals must tell the people of B.C. how much government revenue the proposed expanded Edgewater casino is eligible for, and justify why public money should be used to subsidize well-established private companies that are generating hundreds of millions in profits every year.”

Casinos can receive a subsidy amounting to three per cent of their net win in the form of a Facility Development Commission, which can be used for capital projects. An additional one-time subsidy, an Accelerated Facility Development Commission, can amount to an additional two per cent of a casino’s net win. Together, these subsidies have offset around 40 per cent of the capital costs of casino development in B.C. in recent years.

The proposed new Edgewater casino would have double the number of slot machines and table games compared to the current casino, and, if approved by Vancouver council, would be the largest casino in B.C. The expanded Edgewater would pay an expected $6 million a year in lease payments to the province.

While it is not known how much subsidies in FDCs and AFDCs the proposed casino would receive, Chandra Herbert pointed out that since the province estimates the new Edgewater will bring in $130 million per year in revenue, it can be estimated that the expanded casino could receive between $3.5 million and $6.5 million per year in subsidies.

“Casinos were welcomed into B.C. with the understanding that they would generate revenues for non-profits and charities. But under the B.C. Liberals, that social contract has been broken. Gaming grants are actually lower now than they were in the 1990s, even though revenues from gaming have increased dramatically.” said Chandra Herbert.

According to figures supplied to the Vancouver Sun by the B.C. Lottery Commission, casino operators received $40 million in FDCs in 2009-10, up from $16.5 million in 2001-02.

The B.C. New Democrats are advocating for open and transparent governance, including the separation of gaming policy and gaming enforcement in separate ministries, and a full restoration of gaming grants to charities.

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Contact: Sara Goldvine 250-208-3560

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Strathcona Residents’ Association Opposes Edgewater Casino Expansion in Unanimous Motion

Posted on January 8, 2011 | Comments Off on Strathcona Residents’ Association Opposes Edgewater Casino Expansion in Unanimous Motion

Strathcona Residents’ Association
c/o 601 Keefer Street, Vancouver, BC, V6A 3V8
Strathcona-residents.org

January 5, 2011

To The Mayor and City Council of Vancouver:

As Chair of The Strathcona Resident’s Association (SRA), I am writing to inform you that at our January 5, 2011 meeting:

The Strathcona Residents Association unanimously voted to oppose the expansion of the Edgewater Casino at BC Place Stadium in False Creek.

The SRA urges City Council to refuse to pass the B.C. Government’s application to expand gaming in the municipality, and to oppose the building of the Edgewater mega-casino.

Our reasons for opposition to the building of the expanded Edgewater casino include the following:

1. The planned casino is less than a ten minute walk from our neighbourhood. The well-documented crime that attends casinos, even in provinces with far better gambling regulation than that observed in British Columbia, is not welcome. Strathcona already suffers from crime levels far worse than most other districts. Our position is that situating a massive casino so close to the Downtown Eastside, with its pre-existing crime and policing troubles, is unwise to say the least. Recent news reports demonstrate that casinos provide easy access to money laundering for organized crime, and casinos always attract gang activity. We ask you to acknowledge the growing threat that gangs constitute to our communities.

2. The expanded casino will bring increased traffic to the tune of 300 cars per hour, which will negatively impact our community.

3. The BC government expanded gaming in this province on the back of support from charities who expected to be supported by gaming revenues. Charities have been radically cut away from these revenues. Our neighbourhood, like every other, derives important services from these charities. We see no benefit from expanded gaming in our community.

4. We are opposed to gambling and gambling expansion in general as it significantly increases social ills, something our community witnesses in graphic form daily.

Again, we urge you to decline the application for gaming expansion, and remind you that Strathcona’s opposition is strong and unanimous.

Sincerely,

James C. Johnstone
Chairperson, Strathcona Residents’ Association
Chair@strathcona-residents.org

604-254-4666

cc. Jenny Kwan, MLA
Libby Davies, MP

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BC Business on the proposed expanded Edgewater mega-casino

Posted on December 1, 2010 | Comments Off on BC Business on the proposed expanded Edgewater mega-casino

This article was first published on October 7, 2010 in BC Business Magazine. To read the original on the BC Business site instead, please click here. We wanted to reproduce the article here because it is an informative, thorough investigation into the salient details of the casino deal. Article is by Nick Rockel; image by Peter Holst. For related materials, please see Vancouver Observer series and Edgewater cannot compete with Singapore for China gamblers. Please note that what Paragon states may differ from actual casino plans, particularly on this question of the ‘destination casino.’ Please stay tuned for future article, and  review the Vancouver Observer series (link above) to keep yourselves informed.

The new casino slotted for downtown Vancouver will triple the gambling capacity of the old Edgewater and help pay for a new roof for neighbouring BC Place. Whether the global gambling elite will come to play, as both the developer and province hope, is another matter .

In his black jacket and open- necked shirt, Scott Menke looks ready to play a little roulette, or maybe some Texas hold’em. One morning in late June, the president and co-founder of Las Vegas-based casino developer Paragon Gaming is sitting in the boardroom of his company’s downtown Vancouver office at Plaza of Nations. Menke has just flown in from Edmonton, where his company runs one of its three Canadian casinos. With the confidence of a croupier, he explains how Paragon plans to transform Vancouver into a global gambling destination.

Paragon owns the Edgewater Casino, an underwhelming 30,000-square-foot establishment at the far end of the plaza. But it recently won the right to build a Vegas-style hotel, casino and entertainment complex across the street from here, on a small plot of land next to provincially owned BC Place Stadium. The Edgewater – or rather, its precious gaming licence – will move to the new 780,000-square-foot development, which Paragon aims to finish by 2013.

With 150 tables and up to 1,500 slot machines, the casino portion of the still-unnamed, $450-million project will be more than three times bigger than the Edgewater. But Menke points out that it occupies just 14 per cent of the proposed complex, a branded property that will include two hotels with a combined 650 rooms, plus restaurants, shops, meeting spaces and spa and gym facilities. “Everybody says it’s a casino, but the casino is only 100,000 square feet out of 800,000,” notes the tall Arizona native.

Focus on destination tourism

Menke says the Paragon development is an opportunity to bring more visitors to Vancouver. Where 23 per cent of the Edgewater’s customers are from outside the Lower Mainland, Paragon projects that number will at least double at the new property, thanks to a mix of Canadian and international guests.

In other words, the joint won’t rely on Metro Vancouver residents to keep its baccarat tables and hotel rooms full. “We’ll continue to build our local base, but our focus is really on the destination tourism,” Menke says. “We absolutely believe that we’re going to be additive to the market, not competing with other hotels around here.”

Paragon’s Vancouver play is one more step in the expansion of the B.C. gambling industry, which may soon pour more money into provincial coffers than all corporate income taxes combined. Gambling – or gaming, to use the industry euphemism – is a lucrative business. But skeptics say the provincial government is hooked on the revenues it brings while overlooking the economic and social costs of problem gambling. To others, the idea that high rollers from Chicago and Shanghai will flock to a Vancouver casino is far-fetched. And if the province does view gambling as more than a money grab, it isn’t sharing its plan with the public.

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