The City of Richmond has received an unexpected $5-million windfall from River Rock Casino, which continued its winning streak last year as B.C.鈥檚 top gambling and entertainment destination.
Richmond had budgeted to receive $12.4 million in gambling revenue last year, but instead took in a record $17.6 million 鈥� up 13.1 per cent over 2012.
Casinos are required to give cities in which they operate 10 per cent of net gambling revenue. River Rock has consistently paid out more to local municipalities than any other casino in B.C.
Since 1999, Richmond has received $136.7 million in gambling revenue, according to the provincial government, exceeding payouts from all the other large casinos in Metro 91原创, including Grand Villa Casino in Burnaby, Edgewater Casino in 91原创 and the former Boulevard Casino 鈥� now Hard Rock Casino 91原创 鈥� in Coquitlam.
鈥淚t鈥檚 always been a strong performer, a flagship for us,鈥� Kiran Rao, chief financial officer for Great 91原创 Gaming, said of River Rock.
It has also been a boon to the City of Richmond, which earmarks its gambling revenue for capital projects, upgrades, community grants and extra policing. The latest injection, for instance, will help pay off the $50-million Richmond oval, and start work on an aquatic centre and seniors鈥� facility.
Any surplus money will be placed in a reserve fund, spokesman Ted Townsend said. That fund is not used to cover operating expenses because it is too unpredictable and can be affected by a downturn in the economy.
The city had $7.6 million in its surplus fund at the end of 2012.
鈥淲e鈥檙e very conservative in our budget. We don鈥檛 know (how much money is coming) until we get the cheque from the province,鈥� Townsend said. 鈥淥bviously, this ($17.6 million) is up significantly from previous years. It鈥檚 a good news story for the community in that we will be able to put it to good use.鈥�
Coquitlam Mayor Richard Stewart said Richmond鈥檚 payout was a 鈥渞emarkable number鈥� and he wouldn鈥檛 mind seeing a similar windfall for his city, especially following the $15-million conversion of the former Boulevard casino into Hard Rock Casino 91原创.
Coquitlam receives about $8 million in gambling revenue annually, money that has been used to build a new library, sports centre and soccer tournament facility.
鈥淭hose are the kinds of benefits the community and sub-region get out of the casino,鈥� Stewart said. 鈥淲e鈥檙e certainly wanting to do good work with the money we get.鈥�
But Stewart envisions the new facility will also be a premier tourist destination that would draw visitors from the Okanagan or within Metro 91原创.
鈥淚 want our casino to draw from elsewhere and be part of our tourism strategy,鈥� Stewart said. 鈥淵ou do that by being different.鈥�
Both Rao and Chuck Keeling, a vice-president with Great 91原创 Gambling, say they expect the Hard Rock Casino 91原创 to be a success, noting the former Boulevard had been a top performer before suffering declines in both gambling and hospitality over the past decade as a result of 鈥渕ultiple challenges鈥� such as the property鈥檚 redevelopment as well as traffic disruptions resulting from the Port Mann Bridge and Highway 1 widening project.
The new facility will likely be a 鈥渟maller version of River Rock,鈥� Keeling said, with more entertainment, play tables, hospitality venues and meeting spaces.
鈥淚t was a $15-million capital spend, and there are very high expectations this will create momentum to rebuild that property,鈥� Keeling said. 鈥淲e will work off our experience with the River Rock brand.鈥�
But he acknowledges it may take a while to reach the same success as the Richmond casino.
Keeling credited River Rock鈥檚 success to eight different phases over the past decade, which included the introduction of the Canada Line in 2009, which allowed customers to travel from Waterfront Station to 鈥渙ur front door鈥� in 17 minutes, as well as a bigger focus on entertainment to draw more regional customers.
While Great 91原创 has similar aspirations for Hard Rock Casino, Keeling said, the corporation has put plans for a hotel and additional facilities on hold until it is satisfied with the revenues and 鈥渕arket acceptance of the brand and the facility itself.鈥�
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Here are the top five recipients and the money they have collected since 1999:
Richmond $137 million
Burnaby $121 million
Coquitlam $94 million
91原创 $82 million
New West. $80 million
