Vancouver Island Projects CA$2 Million Deficit sans Casinos

Some businesses have been put on hold due to the current lockdown conditions on Vancouver Island, with the casino industry hurt greatly by the unprecedented situation. Meaning that the region’s budget has been also affected too. And according to the mayor of View Royal, the town will lose around CA$2 million by the time of March.

View Royal’s Elements Casino has been suspended from operations ever since the middle of March in 2020. In the meantime, other businesses have been restarted, such as restaurants, shopping centers, and even fitness facilities. Unfortunately, the casino industry in the region has not seen such luck, with almost a full calendar year without an operating land-based casino.

Hurting the Economy

According to Mayor of View Royal David Screech, such inactivity of the gambling property will cost the township greatly. In his words, the almost 12-month suspension of the gambling venue will hurt the township’s budget with estimated losses of around CA$2 million in casino revenue. Meaning that the town’s council is tasked with heavy choices for the upcoming fiscal year.

Mr. Screech further clarified that he has no notion of whether the casino will be reopened any time soon. And even if that happens, he believes that numbers might not be the same straightaway. This is understandable since it might take a while for people to return to gambling. After all, the whole world is in the middle of financial difficulties.

Despite receiving CA$2.6 million in relief funding, the Mayor still believes that the council must be cautious in distributing the budget to different sectors. He also praised the council members for directing the funds over the years in capital projects such as the town’s infrastructure. Mr. Screech also calmed residents who worried that there might be a significant tax increase, to which he stated that it will not be the case.

It is estimated that the gambling property generates around CA$450,000 each quarter to the View Royal municipality, which is later directed towards other regions such as Langford, Metchosin, Highlands, Sooke, and Esquimalt. Cecilia Ho, BCLC media relations has revealed that the Crown corporation has filed a plan for reopening to the WorkSafe BC and the provincial health executives.

Dependent on Cash Flow

The Elements Casino in the town has turned into a hotspot for both local and visiting gaming enthusiasts. The non-operational status of the casino has been a concern for the municipality of View Royal since it is heavily reliant on funds generated by the gambling property. The closure of many businesses in the region and the casino, in particular, has been the reason for concerns over the course of last year due to many projects being dependent on the currently-non-available revenue.

Problematic Circumstances

Due to the long time of the local gambling venue being inactive and lack of communication with the provincial government regarding the reopening, casino staff has voiced their concerns on the matter. Employees believe that they were unfairly treated due to the inability to return to their workplace for months. In addition to that, the financial difficulties resulted in many of them even being laid off from their occupations.

Source: “Vancouver Island mayor expects $2 million in lost casino revenues by March” Vancouver Island Free Daily, February 16, 2021