Any new casino in the downtown core must be part of a larger “entertainment complex” and not a stand-alone facility, a report from city manager Joe Pennachetti has found.
The report, which will be formally presented to executive committee at a meeting next Monday, examines the pros and cons of either building a casino in the downtown core or expanding the gaming options offered at Woodbine Racetrack in Etobicoke.
It does not offer an opinion on whether or not the city should allow a casino in the first place, but does indicate a preference for a casino gaming floor of less than 135,000 square feet.
The Ontario Lottery and Gaming Corp. has previously suggested that a gaming floor of at least 175,000 square feet would be needed in order to generate enough revenue to provide Toronto with the hosting fee and convention centre space it would be seeking.
“Any consideration of a new casino in the C1 (downtown core) zone requires that it be in the form of an urban, appropriately-sized entertainment complex that enhances Toronto as a convention and tourist destination," the report states. "Increasing convention space would be a strategic economic development benefit that could be leveraged with a casino given the opportunities to co-locate these facilities and the synergistic relationship between the casino and convention business.”
The report suggests that a downtown casino and resort facility could generate 10,200 permanent jobs and another 7,000 temporary construction jobs while an expansion at Woodbine Racetrack would generate about 4,855 permanent jobs and 4,000 temporary construction jobs.
It also takes a look at possible revenues to the city, stating that a new casino complex built in the downtown core could inject up to $148 million into the city’s coffers annually while expanding the gaming options at Woodbine Race track would bring in up to $47 million.
The first number is higher than the $50-to 100-million in annual revenue the OLG has previously said the city could receive.
"City staff strongly advise that the revised municipal hosting fee formula must reflect the unique opportunity of a potential Toronto C1 (downtown) casino. As noted within this report, projections for a new Toronto casino include more than $1 billion in new gaming revenues annually, and a minimum of a $2 billion investment in the development of an integrated complex with convention space, hotel and food, beverage, and retail," the report states. "As a result, staff recommend that the hosting fee for a Toronto casino should reflect the magnitude of the potential development and operation, and the joint risks and contribution of partnering governments equally."
In a statement released Monday afternoon, OLG president and CEO Rod Phillips said he "welcomes the views" contained in the report but notes that any casino would have to be approved by the city, the developer, the OLG and the province.
“OLG is currently reviewing the Municipality Contribution Agreement to ensure the principles of fairness and equal treatment govern this formula, which will be the same for all host communities across the province,” the release adds.
Casino opponents pan report
Pennachetti said his report was completed over the last four months after extensive consultations with community stakeholders, economists and industry experts.
Speaking with CP24 following its release, Coun. Adam Vaughan dismissed the findings.
"There is nothing real in this report and if you vote to put a casino in place after this, God help you,” he said. "These are hypothetical projections based on a bunch of fantasy numbers and at the end of the day, I wouldn’t go to the casino and bet on this one. Let's just get rid of this and move on."
Several major Las Vegas developers have expressed interest in building a casino in Toronto, including MGM Resorts International, Onex, Caesars and Wynn Resorts.
MGM Resorts International has even went so far as to unveil their vision for a 3-million square-foot complex at Exhibition Place and host a job fair for the yet to be approved facility.
"My message is that we are opposed to a casino mall complex at Exhibition Place and I think the very fact that staff have come out with a neutral report is positive from our perspective," Canadian National Exhibition President Brian Ashton told CP24 after learning of the report's findings. "I think there will be a no vote at city council and if it is not a no vote, I believe it will be a yes vote with very strong conditions, and one of those conditions I hope will be taking Exhibition Place off the list of sites."
While many councillors used the release of the report to condemn any potential casino, Coun. Doug Ford told CP24 that the revenue and job creation numbers just further convince him that the city should build a casino.
"We can't give this opportunity up," Ford said at city hall. "It's a golden opportunity to create infrastructure for the water, the road and subways."
Mayor calls casino a ‘golden opportunity’
Speaking at a press conference Monday afternoon, Toronto Mayor Rob Ford echoed his brothers thoughts, throwing his support behind rolling the dice on a new gaming and convention facility in the city.
“Toronto has been presented a golden opportunity folks,” Ford said. “An opportunity that creates jobs, stimulates our economy and makes Toronto a preferred convention destination.”
While the city is the fourth largest in North America, Ford says it currently ranks 33rd on a list of convention destinations. A new convention centre would allow the city to attract new business, he argued.
“A new gaming complex and convention centre in Toronto would create 10,000 good paying union jobs, for the hard-working people of the city,” he said. “In addition, this project will create between 7,000 to 11,000 construction jobs -- that’s great news for Toronto and Ontario.”
Divisive issue in Toronto
A potential casino for Toronto has been a polarizing issue since day one.
While Ford and several allies on council have spoken out in favour of the idea, many activists and community groups have cried foul, saying the social costs of such a facility would negate any monetary gains.
Last week, a union representing 20,000 city workers even put out an open letter, saying they would publicly lobby against a casino.
The letter from CUPE 79 was released after an internal poll revealed that 67 per cent of members oppose a casino outright.
City council is expected to vote on the matter in May.
Remember for instant breaking news follow @cp24 on Twitter.
