Thursday, July 19, 2007

City Eyes Casino As Possible Solution To Money Woes

Mayor David Miller and several Toronto councillors are considering allowing a full-scale casino at Woodbine Racetrack to help the city out of its financial crunch.

But they want a large share of the revenues from any roulette, craps or card games -- an idea the provincial government doesn't appear to support.

"There is a (slots) casino now at Woodbine and ... if they want to expand, I'd look at it, but only if the money comes down to the city," Miller said.

"There's no point of us even looking at it if the money keeps going to the province because casinos have a lot of downsides as well."

Councillor Adrian Heaps (Ward 36, Scarborough Southwest) backs a casino that would solely benefit Toronto.

"If we're going to have a casino, then we've better have 100 per cent of the revenue, and the province can stay out of it 100 per cent as well," he said.

The mayor is looking for additional sources of revenue after his proposal to raise $350 million through a land transfer tax and vehicle registration fee was deferred until after the October provincial election.

Toronto faces a potential $575 million budget shortfall next year. After the tax vote delay, Miller ordered spending within public service departments to be tightened and warned property tax increases could rise by up to 10 per cent next year.

He also said large cuts could be coming to the city's services.

The financial misery, however, is no reason for a casino, said Councillor Joe Mihevc.

"I don't like the aesthetics of a casino in Toronto. There are other places people can go -- Windsor, Niagara Falls and that -- let them go there," Mihevc said.

"I think there are a number of social ills that need to be looked at as well that come as a result of casinos."

Earlier this week council approved a $750 million development at Woodbine. The Rexdale facility will feature a skating rink and hotel, and it has more than enough room for a full casino.

While Woodbine Entertainment Group supports a municipal casino on its grounds, licensing is up to the province.

The Ontario government says such a proposal in not under consideration at the moment.

"We did announce a gaming strategy in January 2005 where we said no new gaming sites -- that is still in effect," a Ministry of Public Infrastructure and Renewal spokesperson told the Toronto Star.

Sources at Queen's Park said consultants hired by Woodbine have been lobbying the province to lift that moratorium, the Star reported.

About one-third of the Niagara casino's customers and half of Casino Rama's players come from the GTA, the newspaper reported.

Ontario Lottery and Gaming also owns two commercial casinos with private-sector partners, in Niagara Falls and Windsor.

Casinos and gambling facilities are a large source of revenue. A recent study said gambling contributes $15 billion to Canada's economy each year.

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