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      Leaders survey: Canadian community leaders give a resounding thumbs up to casino gaming
      By Lyle Hall, managing director, HLT Advisory
      March 31, 2016


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      Leaders survey: Canadian community leaders give a resounding thumbs up on casino gaming

      As casinos were proposed, planned and opened across Canada, much was written about the potential positive and negative impacts that casino gaming could have at the community level. In 2015, after a two-decade-plus history of casino operations, the Canadian Gaming Association determined the time was right to survey Community Leaders about these impacts.  Ultimately the intent was to determine if, given the choice and knowing what they now know, Community Leaders would accept a casino in their community today.

      HLT Advisory was engaged to undertake the survey, which was completed through the spring of 2015.   Surveys were sent to a total of 1,708 Community Leaders in eight provinces that offer full-service casinos or racinos and where the provincial lottery and gaming corporation supported the initiative. A total of 272 responses were received producing a response rate of 16%, a reasonably strong response rate for a survey of this type.

      Some background

      Full-service casino gaming (i.e., casinos offering table games and electronic gaming machines/slot machines) was introduced in Canada in 1990 at the Crystal Casino, located on the seventh floor of Winnipeg’s Fort Garry Hotel. The Crystal Casino was one of the first government-owned and operated casinos anywhere in the western hemisphere. Up to that point, gaming in Canada consisted of table game-only casinos or, more frequently, establishments run in conjunction with annual fairs or exhibitions (e.g., during the Calgary Stampede or the Canadian National Exhibition).

       

      The survey focused on those communities (including First Nation communities) with at least one full-service casino or “racino” (a racetrack offering slot machines) currently in operation. These facilities are collectively referred to as “casinos.”

      The survey sample included a cross section of Community Leaders including elected officials (e.g., mayors, councillors, tribal officials), municipal services (e.g., fire and police chiefs), economic development practitioners (e.g., chambers of commerce, tourism marketing organizations) as well as charities and service clubs. The survey sought to gather perceptions and views of casino gambling through the lens of these Leaders’ positions in the community (as opposed to their personal opinion on gambling).

      Good corporate citizens: yes or no?

      Community Leaders were asked about the role casinos (and casino managers) play within their communities. The response was overwhelmingly positive with:

      • 85% of Community Leaders stating that they believe the casino in their community is a good corporate citizen.
      • 78% believing the casino enhances the tourism appeal of the community, as well as offering a quality entertainment product (77%) and a safe environment (90%).
      • 77% believing the casino generates business for local suppliers of goods and services.

      Community Leaders agree that the introduction and operation of casinos in Canadian communities has been a success from an economic development, revenue and employment basis. Governments have benefited from new tax revenues, local tourism economies have benefited from new products, jobs have been created and economic activity sparked.  

      Promises versus reality: the positives

      Community Leaders were almost unanimous in agreement that casinos delivered on two of the key outcomes most often mentioned in the run up to the casino development decision: creation of municipal tax revenue and employment.  

      Employment is a key consideration for any economic development activity, strategic plan or growth strategy. Community Leaders were positive on the employment impact of casinos in their community, noting that the jobs created were quality positions and well paid. The important role played by casinos in creating jobs was, not surprisingly, more pronounced in both smaller and First Nation communities than in larger metropolitan areas and big cities.

      Elected officials, as a subset of the overall sample, were pleased with the tax generation and employment created by casinos. First Nation Community Leaders were more likely to note positive impacts in tourism growth, economic development and expanded entertainment options than their non-First Nation community counterparts. This could be attributed to the generally more rural setting of these communities and the casino being instrumental in creating a tourist/entertainment draw for the community.

      Promises versus reality: the negatives

      Prior to the introduction of casino gaming, public perception of various societal and personal difficulties associated with casino gaming included increased crime, poverty and bankruptcy, traffic, cannibalization of revenue from other entertainment businesses and problem gambling/gambling addiction disorders.

      Community Leaders indicated that the majority of these initial concerns did not materialize (most specifically crime and related strains on municipal services). When questioned about incremental demand on public services such as police, fire and ambulance as a result of introducing casino gaming, Community Leaders suggested no such demands were created.

      However, the perception of problem gambling—and the issues associated with problem gaming—continues. Further, this issue is consistent across First Nation and non-First Nation communities as well as across both large communities and small communities.

      This perception requires further review however, particularly when the Canadian Partnership for Responsible Gambling has been measuring rates of problem gambling on a province-by-province basis annually since 2002 with no overall increases in problem gambling rates.

      The bottom line: would you do it again?

      The ultimate test of satisfaction with respect to supporting the introduction of casino gaming is, knowing now what actually occurred in a given community versus what was speculated at the time of the original decision, would casinos still be supported today? Community Leaders overwhelming said yes.  

      When asked if a casino would be accepted or rejected today, the “yes” view outnumbered the “no” view by 3.5 to 1. Those responding “yes” encompassed a broad cross section of respondents from coast to coast, First Nation and non-First Nation, as well as from large and small communities.

      Community Leaders are also in agreement—by a wide margin—that the introduction of casinos has been a net benefit for their community. Those viewing casinos as a positive contributor outnumber those with a negative view by 5 to 1. Only 13.1% expressed negative views towards casinos with the remaining either ambivalent or unsure.

      No distinct geographic location pattern emerged from the survey results (i.e., positive views outnumbered negatives views in every province, and by a significant margin).   

      All in all, Community Leaders believe that the introduction of full-service casinos in Canadian communities has been a success.

      The complete report maybe viewed at the Canadian Gaming Association website.

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