HomeMy WebLinkAboutCD-17-98
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THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
T
REPORT
D~e: Monday, March 23, 1998
File# ''-1D3 .
Res. #C:, P I~ - /(.,'6 . 'j'is
By-Law #
Meeting: General Purpose and Administration Committee
Report #: CD 1 7 9 g
File#:
Subject: CHARITABLE GAMING
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report CD-17-98 be received;
2. OPTION 1
THAT no action be taken until the Municipality of Clarington
is approached by the Province to negotiate placement of a
Charity Gaming Club within the municipality's boundaries and,
if such a proposal is received, full public hearings be held
on the specific proposal; or
3. OPTION 2
THAT the Municipality of Clarington advise the Province of
Ontario that it does NOT want a Charity Gaming Club to locate
within the boundaries of the Municipality of Clarington; or
4. OPTION 3
THAT, before making a final decision on whether or NOT to
establish a Charitable Gaming Club in the Municipality of
Clarington, a public meeting be held to obtain input from
local charities, police services, business associations, any
other interested community groups and members of the public.
BACKGROUND:
1.1 The following resolution was passed by Council:
"THAT the correspondence dated September 9, 1997, from David
H. Tsubouchi, Minister of Consumer and Commercial Relations and
Marilyn Mushinski, Minister of Citizenship, Culture and Recreation,
regarding the Ontario Governments Program relating to charitable
gaming initiatives, be received for information; and
RECYCLEO I:I;\ PAPIER
PAPER \tJ:1 RECYCLE
THIS IS PRINTED ON RECYCLED PAPER
701
. .
CD-17-98
2
March 23, 1998
THAT the correspondence be referred to staff for consultation with the
Municipality's local charities and preparation of a report, including
breakdown of revenues, to be submitted to the General Purpose and
Administration Committee."
1.2 Staff, subsequently, sent a letter to the 70 organizations eligible for
lottery licensing (See Attachment #1). Twenty-six replies were
received (37% of organizations contacted) and are summarized in the
chart below:
ORGANIZATION 1997 NET LOTTERY IN OPPOSED DID NOT
REVENUES FAVOUR COMMENT
Clarington Swim Club $58,000.00 X
Inc.
Haydon Community Centre $860.00 X
St. George's ACW $442.00 X
Newcastle
Solina Silver Set $311.01 X
Visual Arts Centre of $798.35 X
Clarington
Memorial Hospital $0.00 X
Foundation - Bowmanville
Newcastle Skating Club $1,112.40 X
Parkview Social Club $161. 50 X
Lions Club of Newcastle $11,434.00 X
Durham Region Community $1,187.00 X
Care Association
Orono Amateur Athletic $3,278.50 X
Association
The Royal Canadian $4,225.00 X
Legion
St. Francis of Assisi $998.00 X
Catholic Women's League
702
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March 23, 1998
ORGANIZATION
1997 NET LOTTERY
REVENUES
$0.00
Clarington Museums
Clarke Museum & Archives
The Heritage aIde Tyme
Fiddle & Dance Society
Beehive Rebekah Lodge
St. Joseph Catholic
Women's League
St. Therese Catholic
Women's League
Hospital Auxiliary
Bowmanville Senior
Public School
$0.00
IN OPPOSED DID NOT
FAVOUR COMMENT
X
X
X
X
X
X
X
X
X
X
X
X
X
$522.00
$2,196.00
$4,762.50
$60,448.00
$0.00
Bowmanville
Horticultural Society
The Lions Club of
Bowmanville
$623.18
$1,346.75
The Lions Club of
Courtice
$751.00
Head Injury Association
of Durham Region
Heather Rebekah Lodge
Bethesda House
$0.00
$0.00
$8,789.28
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The grand total of
organizations in the
approximately $439,000.
lottery revenues generated to
Municipality of Clarington
all
in
eligible
1997 was
1.3 The revenues to the Municipality of Clarington in 1997 from Lottery
Licensing were as follows:
Bingos
Raffles
Nevada (BOT)
$ 2,003.00
$ 2,537.11
$47.255.00
Grand Total
=
$51,795.11
703
CD-17-98
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March 23, 1998
2.0 PROCESS:
2.1 In December, 1996, the Ontario Gaming Control Commission retained the
firm of Coopers & Lybrand to prepare a report "Ontario Charity Gaming
Club proj ect" addressing the potential market, potential financial
implications and potential sites for Charity Gaming Clubs in the
Province. The report is on file in the Clerk's Department.
2.2 In February, 1997, the Charitable Gaming Allocation Working Group
appointed by the Province prepared a report called "A Compass and a
Dream" regarding access of charities to gaming revenues from video
lottery terminals (V.L.T.'s) and Charity Gaming Clubs. A copy is
available in the Clerk's Department.
2.3 Subsequently, the Province also issued a "Charitable Gaming" document
which is also available in the Clerk's Department. This document
describes the Charitable Gaming Clubs, why these clubs are replacing the
Monte Carlo Events and addresses their impact on policing, charities,
municipalities and local economies.
2.4 The introduction of Charity Gaming Clubs is intended to replace the
present Provincially licensed roving monte carlo events in
municipalities with a fixed location within market areas defined by the
Province. The introduction of V.L.T.'s into these facilities would also
be permitted.
3.0 REVENUES:
3.1
The following summary describes
charities and municipalities as
information as been drawn from the
from the Province of Ontario.
the financial and other impacts on
suqqested by the Province. This
"Charitable Gaming" document received
3.2 There will be 44 clubs throughout Ontario - 36 permanent and 8 part
time/seasonal. Charity Gaming Clubs are not casinos like the commercial
operations in Windsor, Niagara Falls and Orillia. They are about 1/10
the size of Casino Windsor or Casino Rama and each club will have a
maximum of 40 gaming tables and 150 V.L.T.'s.
3.3 The distribution mechanism will be based on two different streams of
revenues as follows:
(a) VIDEO LOTTERY REVENUES:
Video lottery terminals (V.L.T.'s) are expected to generate $100
million annually.
Ten percent of gross video lottery revenue will be available in the
form of grants to charities and not-for-profit organizations - up
to $10 million annually.
704
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CD-17-98
5
March 23, 1998
The Ontario Trillium Foundation will distribute video lottery
revenues to all charitable sectors and will make decisions on 20%
of the allocated funds ($20 million) for province-wide pilot
projects.
Community Funding Bodies will be established across the Province to
make decisions on 80% of the funds (up to $80 million) for local
projects that benefit communities. These funds will be allocated
to Community Funding Bodies on a per capita basis. Members of the
Community Funding Bodies will be nominated by a diverse group of
community leaders in each community.
The host Municipality will get $1,500 per year per V.L.T. (150 X
$1,500 = $225,000).
(b) TABLE GAME REVENUES AT CHARITY GAMING CLUBS:
Table games are expected to generate $80 million annually.
Charities participating in the permanent charity gaming clubs will
receive 50% of net table game revenue (up to $40 million annually) .
Table game revenue at each charity gaming club will be pooled and
distributed monthly to the charities that participated in the club
that month in proportion to their time period (1, 2, or 3 days).
Although the daily revenue for a charity participating in a club is
dependent upon the location of the club, attendance, etc. on
average, a charity could raise between $3,000 to $5,000 per day
from the table game revenue at the clubs.
Charities currently actively involved in sponsoring Monte Carlo
events will be given preference by municipalities in the allocation
of initial time periods. Remaining periods will be allocated using
a lottery system and the periods will then be allocated on a
rotational system.
4.0 IMPACT ON EXISTING CHARITABLE GAMING AND MUNICIPALITIES:
4.1 Roving Monte Carlo events currently generate approximately $10 million
annually for charities throughout Ontario; charity gaming clubs are
expected to generate up to $180 million annually.
4.2 Attachment #2 to this report - Coopers & Lybrand's report prepared for
the Ontario Gaming Control Commission - Appendix 3: "Visitation and Win
Analysis and Supportable Gaming Devices: By Regions" - indicates that
the Region of Durham would generate annual charitable gaming revenues as
follows:
Total Table Win
Total V.L.T.'s Win
$23,403,307
$17.583.221
TOTAL
$40,986,528
705
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March 23, 1998
4.3 Although the Province has conducted a market study justifying locations
for charity gaming clubs (two charity gaming clubs proposed for the
Region of Durham) it is not clear if all existing eligible charities
would qualify under Provincial rules for access to revenues generated by
the charity gaming clubs. It is generally felt that there will be an
impact on both charities and bingo halls but it is too soon to know to
what extent existing facilities will be impacted.
4.4 The Province currently licenses and regulates casino type gambling
operations. The Province will licence the charity gaming clubs but the
host municipality would licence the charity gaming club under the
general powers granted in the Municipal Act. The host municipality
could then establish its own conditions under which a licence would be
granted.
4.5 Since there are no charity gaming clubs presently in place, the
following information has been obtained from a Municipality which has
completed a study on how municipalities with casinos have been impacted:
. Niagara Falls has not completed any studies to date on their
casino.
. Orillia has reported that hotels, restaurants and gas stations have
benefited significantly, but few other business spin offs have been
noted. Traffic has increased significantly and this will be
addressed with new road improvements.
. Windsor has advised that crime rates have dropped in the downtown
area in the vicinity of the casino (additional policing in this
area, no doubt, has had an impact) and that overall crime rates are
dropping throughout the community. The general consensus is that
the casino has resulted in some addiction and social problems, but
city staff and the Windsor Police Services do not believe those to
be serious problems in the community. As for the downtown,
significant spin-off or increased sales directly attributable to
the casino have not been noted, but the higher activity levels
created by this casino have improved the profile of the downtown
which has been beneficial for the downtown. Certain land
redevelopments are being undertaken in the downtown which city
staff believe would not have happened without the casino.
5.0 RESULTS OF SURVEY OF MUNICIPALITIES IN THE REGION OF DURHAM
All municipalities in the Region of Durham were contacted to determine
their support or opposition to the establishment of Charitable Gaming
Clubs and the following responses were received:
706
CD-17-98
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March 23, 1998
. Town of Pickerinq
The Council of Pickering placed the following question on the
ballot in the 1997 election:
"Do you support the establishment of one permanent charitable
casino site in a non-residential area within the Town of Pickering
to replace the existing roaming charitable casinos?"
The election results on this Question were as follows:
Yes:
No:
7,436
12,205
. Town of A;ax
On November 3, 1997 the Council of Ajax passed a by-law to require
the holding of public meetings and a referendum should the Town of
Aj ax receive an application proposing the establishment of a
Charity Gaming Club within the Town of Ajax.
. Townshio of Uxbridqe
The Council of Uxbridge has not taken a position on this matter.
. Town of Whitbv
The Whitby Council passed the following resolution on
October 14, 1997:
"That consideration of the matter
permanent charity casino in the Town
the Province has provided the Town
permanent charity casinos;
of the establishment of a
of Whitby be postponed until
with further information on
That the Council of the Town of Whitby petition the Province of
Ontario to include a clause in the applicable legislation or
regulations that gives the Councils of local municipalities the
right to approve or deny the location of permanent casinos within
the municipalities; and
That copies of this resolution be forwarded to the Premier of
Ontario, the Minister of Consumer and Commercial Relations, the
Leaders of the Opposition Parties and local M.P.P.'s."
. City of Oshawa
A referendum was held on June 10, 1996 and the results were as
follows:
Yes - 9,548
No - 17,981
707
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CD-17-98
8
March 23, 1998
On May 5, 1997, a resolution was passed:
to reiterate the will of the voters
to direct the Department of Development and Planning Services
to initiate the process to amend the Zoning By-law to prohibit
permanent Charity Gaming Clubs as a permitted use of land in
the City of Oshawa
to petition the Province for legislation which would give
municipalities the right to approve or deny a Charitable
Gaming Club
to hold a public meeting prior to any approval of a site.
. The Township of Brock
The following resolution was passed by the Council of the Township
of Brock on January 13, 1997:
1) That video lottery revenues be allocated to municipalities
based on a funding formula; and that council be responsible
for identifying local community needs and be accountable for
the reporting of the funds.
2) That gaming licences be issued using a "per capita" formula to
calculate and assign the number of gaming licences issued to
each of the municipalities being served by the gaming hall.
3) That the distribution of revenues from gaming halls be pooled
and distributed based on a fair and equitable funding formula.
4) That due to the lack of certain specifics at this time, the
municipality be apprised by the Working Group of the
recommendations which are being formulated for presentation to
the Government of Ontario."
. Township of Scuaoa
The Council of Scugog passed the following resolution on February
16, 1998:
"WHEREAS the Township of Scugog is vitally concerned about the
possibility that new legislation governing Video Lottery Terminals
(V.L.T.'s) will have the effect of allowing wide distribution of
V.L.T.'s in any given community;
AND WHEREAS the Council of the Township of
opposed to the making of any retail sector
gambling venue so that access by the
uncontrollable;
Scugog is strongly
in any communi ty a
general public is
AND WHEREAS the Township of Scugog's goal is to make gambling a
matter of personal choice;
708
CD-17-98
9
March 23, 1998
AND WHEREAS there are locations, sites and institutions within the
Province of Ontario suitable to establish for gambling purposes so
that those who wish to gamble can frequent;
AND WH~REAS controlled, established sites provide employment,
entertalnment and contribute financially to the local municipality;
AND WHEREAS the Province of Ontario is in
considering the establishment of permanent,
locations throughout the Province;
the process of
charitable Casino
AND WHEREAS the Township of Scugog is the site of the Great Blue
Heron Casino, which is a restricted facility, but ideally suited
for the use of V.L.T.'s;
NOW THEREFORE that the Minister be requested that the Province of
Ontario, in its process to establish new charitable gaming
facilities in the Province, that the Great Blue Heron be a
designated site and be governed by the same licenses as other
charitable gaming facilities."
In conclusion, Staff has provided a copy of this report to all parties who
have expressed an interest.
6.0 RECOMMENDATIONS:
It is therefore recommended that Council adopt one of the following
options:
Option 1
THAT no action be taken until the Municipality of Clarington is
approached by the Province to negotiate placement of a charity gaming
club within the municipality's boundaries and, if such a proposal is
received, full public hearings be held on the specific proposal; or
Option 2
THAT the Municipality of Clarington advise the Province of Ontario that
it does NOT want a Charity Gaming Club to locate within the boundaries
of the Municipality of Clarington; or
Option 3
THAT, before making a final decision on whether or not to establish a
charitable gaming club in the Municipality of Clarington, a public
meeting be held to obtain input from local charities, police services,
business associations, any other interested community groups and members
of the public.
709
CD-17-98
10
March 23, 1998
Respectfully submitted
Reviewed by
~~T'
Clerk
~
W.H. Stockwell
Chief Administrative Officer
MPK*PB*hj
Attachment #1 - Correspondence sent to 70 eligible organizations.
Attachment #2 - Appendix 3 - Cooper's & Lybrand "Ontario Charities Gaming
Club Project" Report.
Interested Parties:
Mayor R.D. Christy
Kitchener City Hall
P.O. Box 1118
200 King Street West
Kitchener, Ontario N2G 4G7
D. Tsubouchi, Minister
Consumer and Commercial Relations
35th Floor
250 Yonge Street
Toronto, Ontario M7A 2J6
Isabel Bassett, Minister
Citizenship, Culture and Recreation
6th Floor
77 Bloor Street West
Toronto, Ontario M7A 2R9
Patsy Scott
Newcastle Ratepayers Association
514 Mill Street South
Newcastle, Ontario L1B 1C2
Jack Eibeck
Bondhead Community Association
626 Mill Street South
Newcastle, Ontario L1B 1B1
710
Attachment III
_CJ/a;t:'gt;;n
ONTARIO
January 12, 1998
RE: THE ONTARIO GOVERNMENT'S CHARITABLE GAMING INITIATIVES
This will advise that the following resolution was passed by the
Council of the Municipality of Clarington:
"THAT the correspondence dated September 9, 1997, from David
H. Tsubouchi, Minister of Consumer and Commercial Relations
and Marilyn Mushinski, Minister of Citizenship, Culture and
recreation, regarding the Ontario Government's Program
relating to Charitable Gaming Initiatives, be received for
information; and
THAT the correspondence be referred to Staff for consultation
with the municipality's local charities and preparation of a
report, including breakdown of revenues, to be submitted to
the General Purpose and Administration Committee."
I enclose herewith a copy of the above-referenced correspondence
for your information.
The purpose of my letter is two-fold:
· To request that you forward correspondence to me which
reflects your Lottery revenues for the year 1997; and
· That you include in your correspondence whether you support or
oppose this provincial initiative.
I would appreciate your response by Februarv 15. 1998 as your
comments will be incorporated in the report which will be
considered by Council in early March.
If you have any questions pertaining to the above, do not hesitate
to contact me at 623-3379 during business hours.
-1::: :r:a
Marle P. Knight, C.M.O
Deputy Clerk
Encl.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET. BOWt.4ANVILLE .ONTARI~. L1C 37.1915) 623-3379. FAX 623-4169
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RECYCLED PAPER
GLARINGTON
COUNCIL INFORMATION
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September 19, 1997
J\GENDA
De8t Head A of Council:
It is a pleasure to have this opportunity to Wlite to you regarding the Ontario government's program
relfttmg to charitable gaming initiatives.
As you are aware, in the May 1, 1996 Ontario Budge~ the Minister of Fmftnce announced that the
government would be putting forward plRtU for a netWork of permanent charity gaming clubs to replAce
the current system of Ad hoc roving Monte Carlo events.
Approximately 4,900 roving Monte Carlo events were licensed in 1996. nus adds up to approximately
IS,OOO gaming days in Ontario. The proliferation or roving Monte Carlo events WllJ creating A situation
where there WaJ a major concern over the government's Ability to monitor, control and establish
satisfactory accountability measures around this activity. Roving Monte Carlo events are expanding Ilt .
rapid rate every year. As an example, between 1993-1994 the increaqe wu 139'''. Between 1994.199.5
the incrCMe was 38%. Between 1995-1996 the increase was 44%. In this connection, the introduction
of charity gaming clubs will stabilize without further increasing the amount of gaming activity already
taking place.
The objedive ofthi!! policy is to stabilize funding to Ontario chatitable organizations and to ensure they
receive their fair shue of proceeds from charity gaming initiatives.
In addition, the permanent facilities bring about Il safer environment Aod allow the govenunent to
Introduce more ftccountabllity, better control and increned monitoring Mound this fonn of gaming
Ilctivity.
.
It has been consistently the government's position that the province would not Impose a charity gBming
fat-'ility on ! municipalIty that does not want one.
In this respect, it is our hope that you and your council will reach a decision on the future of charity
gaming clubs after meaningful discussions with local charities who are the main beneficiaries of the
initiative and local tourist ftnd business associations. We look forward to working with you once you
arrive ftt 8 decision.'
It iJ thi! government's intention to respect decisions made by municipalities. Local councilJ will have
the final word. .-.. "'- -
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Jj\ fact. even where some municipaJities have indicated they would be "wUllnS hosts" It Is our View that
~ should encourage conununlty input through dialogue between the successful proponents, lo~ .'
. chirltable organizations, business and tourist usoclatlons and others who have an Interest in this
Wtiative.
Charitable organi7..ations expressed concern to the govenunent that they were not receiving their fair
share of proceeds from du, form of gaming. and u we have mentioned, the govenunent wanted to
ensure more control and more accountability Into this sandng sector.
It is against this background that the government hat Mnouneed that it will establish 44 permanent
clwity gaming clubs to be strategically located throughout the province.
The benefit. of thIs poUcy will be to lncreMe the charitable orgwutlon revenue by up to $180 million
net annually. This represents 18 times more than the $10.$12 million charitable organizations receive
under the current roving Monte Cillo system.
We are BUre you are aware we presently have a system that is not working-that need, major repair.
Our gaming initiatives wiD respect the view. of local government, stabilize and greatly Increase the
benefits to Ontario charitable organl.z.atlolU, create a safer environment and bring about more security,
more control and greatly Increased accountability Into this charitable gamJng sector. Ontario wiD be
better served.
YourJ truly,
Q~i1~C _/
. Dnid Jl T. ucht -
Minbtff'
COMUttJer And CommerciaJ Re.lBtions
~~.
MIlriJyn Mu,hinski
MJnhter
Citizenship, Culture lOd Itetf:rl'fttion
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