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Charity group ups the ante on casino opposition

“This provincial share leaving this area is not a North Bay problem - this is a regional problem”
Zimbl
Janet Zimbalatti of the Blue Sky Bingo Hall Charity Association returned to Council Chambers on Monday to urge the politicians to consider the amount of money the area would lose to the province if an OLG Casino were built in the city. Photo by Liam Berti

Building a casino in North Bay could be a high stakes proposition not just for the city, but for the region at large. 

Janet Zimbalatti of the Blue Sky Bingo Hall Charity Association returned to council chambers Monday night to request an up-to-date economic impact study of a casino in the city, and she wants it done this year. 

But based on her own research, Zimbalatti said the province would be the big winner and it would be betting with the region’s money. 

The last council supported the Ontario Lottery and Gaming Corporation process in 2012 to ensure there was community interest and OLG is now finalizing the request for proposal process for the Northern Gaming Bundle, including North Bay, Sudbury, Sault Ste. Marie, Thunder Bay and Kenora.

But the biggest factor that didn’t show up in the previous research was the amount of money that would be flushed out of the region thanks to the hefty provincial share, Zimbalatti said. 

She explained that the 20 existing slots and casinos in the province had collective growth revenue of approximately $2 billion, and expenses of $1 billion, with the net revenue of roughly $1 billion being funneled through to the provincial government. 

In other words, for every $100 spent on recreation at slots and casinos, $50 went to the province.

North Bay’s municipal share of the revenue, on the other hand, would be around five percent, depending on the number of slots and tables. 

For anecdotal evidence, Zimbalatti used Thunder Bay as an example. It garnered $35.8 million from the municipal share of the profits to-date. But if the general provincial share trends are applied, that means roughly $350 million has left the region and gone to the province. 

“I’m sure they spend it wisely, but we have to be aware that that money leaves our local economy,” said Zimbalatti.

The last time the social and economic impacts of the proposed casino were considered was prior to council’s vote in favour of the plan in September 2012. 

“We think it’s high time this was updated because we have some new information,” she said. “I want it to be as transparent as possible, looking at the economical risks as well as the benefits.” 

As Zimbalatti reminded the politicians on Monday, their predecessors’ approval was “subject to negotiations, confirmation and acceptance of the would-be-private-sector operator, revenue sharing, site location and derived community benefit."

In the same year as council’s original approval of the plan, a District of Nipissing Social Services Administration Board (DNNSAB) report indicated that there were too many unknown variables and a lack of supporting information about the proposal. 

The report reads that “the unknowns significantly outnumber the knowns, making if very difficult to make an information decision.” 

As Zimbalatti pointed out two weeks ago, the proposed casino would be licensed for up to 300 slots and 15 tables, which would rank in the bottom third in size and additional amenities compared to the 29 other OLG slots and casinos throughout the province. 

But for the first time since the Association's secretary brought the group’s concerns forward in February, members of council responded with some questions of their own on Monday night. 

Councillor Mac Bain, in particular, raised concern for the city losing out to whichever surrounding community would land the casino if North Bay didn't, said there are a great number of people in the community who want the casino. 

“The casino would happen in a surrounding municipality, so we as a community and the City of North Bay would lose our share of that municipal share if it went to Callander or East Ferris,” said Bain. “They wouldn’t have to share, just like we don’t have to share with them.”

But, above all, Zimbalatti said it’s not a problem that would be unique to the city - it’s a region-wide concern.

“This provincial share leaving this area is not a North Bay problem - this is a regional problem,” Zimbalatti replied bluntly. “If you’re looking at $1 million for the city or whichever municipality, we’re still losing $10 million for 20-40 years from this region. 

“I think we could approach the other councils and share this argument,” she added. “I’m really worried about the impact on the whole economy of this region with a provincial share being so large.”

The casino would have a negative affect on the bingo revenue, she argued, and therefore the charity’s fundraising efforts and local spending too. 

The Association receives 45 per cent of the profit from all games and concessions at Blue Sky Bingo, which are paid directly to the 57 partnering charities and must be spent to benefit local causes. 

In 2014, the group estimated the charities contributed up to $1.2 million to the district economy. 

“Those bingo funds just don’t sit in somebody’s coffers somewhere,” said Zimbalatti. “They roll through the charities and they are spent immediately in this community by people who are passionate about doing great things in the community.”

Zimbalatti also referenced the 2012 DNSSAB report which said up to 85 percent of the small businesses surveyed in Thunder Bay said their casino had a negative impact on their business.  

Councillor Chris Mayne supplemented her point by saying the Thunder Bay charity bingo revenue dropped up to 80 per cent after its casino opened. 

With those details now out in the open, almost four years later, Zimbalatti and the Association is asking for an up-to-date analysis be done and that the results be shared with the community now, before it comes time to make a decision on the venue.  

She also asked that if the casino gets approval that council mitigate the impact on the charities that participate in the bingo funding by using the municipal share from the casino to bring their fundraising revenue to the same level as before it starts operating. 


Liam Berti

About the Author: Liam Berti

Liam Berti is a University of Ottawa journalism graduate who has since worked for BayToday as the City Council and North Bay Battalion reporter.
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