Gambling in British Columbia: A Case Study of Seaport Centre by ROBERT D. BOOTH B.A., Simon Fraser UmVersity, 1993 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS in THE FACULTY OF GRADUATE STUDIES (School of Community and Regional Plaruoing) We accept this thesis as coriforming to the required standard THE UNIVERSITY OF BRITISH COLUMBIA April 1998 © Robert David Booth, 1998 In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of British Columbia, I agree that the Library shall make it freely available for reference and study. I further agree that permission for extensive copying of this thesis for scholarly purposes may be granted by the head of my department or by his or her representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. Department The University of British Columbia Vancouver, Canada DE-6 (2/88) Abstract This thesis examines gambling in British Columbia and reviews the failed Seaport Centre casino proposal for downtown Vancouver. The third wave of gambling sweeping across North America started when the state of Nevada re-legalized casinos in 1931, and underwent a major boom with the introduction of the first state lottery this century in New Hampshire in 1964. Since this time, virtually every state and provincial government in North America has introduced some form of legalized gambling. This thesis examines the third wave of gambling, and the rise of the urban casino which began to emerge in the late 1980's and early 1990's. The rise of the urban casino provides policy makers significant urban planning considerations. First, a review is conducted of the literature on gambling, illustrating the new phenomenon in gambling - the urban casino. Second, an analysis and history of gambling in Canada and British Columbia is explored. Third, a case study on the Seaport Centre casino proposal for Vancouver's downtown waterfront is documented, illustrating the issues associated with urban casinos from a planning perspective. The thesis documents the history of gambling in North American society. The current gambling wave sweeping the continent has been described as the third wave of gambling. Driving the most recent wave of gambling has been governments revenue imperative, promotion of gambling interest from business and certain interest groups and consumers demand for gambling games. As casinos moved to the forefront of the gambling explosion, the rise of the urban casino provided complex urban planning considerations. The case study on the Seaport Centre casino proposal for Vancouver provides a good framework for understanding the issues associated with urban casinos, many of which are local in nature. While the Seaport Centre proposal ultimately failed, the comprehensive analysis the City of Vancouver conducted serves as a useful guide for policy makers to understand the issues associated with an urban casino. iii Table of Contents ABSTRACT .' ii TABLE OF CONTENTS iii LIST OF TABLES vii LIST OF CHARTS viii ACKNOWLEDGMENT ix CHAPTER 1 INTRODUCTION: THE NORTH AMERICAN GAMBLING WAVE 1 1.1. BACKGROUND 1 1.2. PURPOSE 3 1.3. PROBLEM STATEMENT AND OBJECTIVES 4 1.4. RESEARCH METHOD 6 1.5. KEY CONCEPTS 7 1.6. ORGANIZATION 7 CHAPTER 2 THE NORTH AMERICAN GAMBLING LANDSCAPE 9 2.1. INTRODUCTION 9 2.2. THE EARLY HISTORY OF GAMBLING 10 2.3. THE GAMBLING EXPLOSION 10 2.4. THE CONTEXTUAL VARIABLES AND STRUCTURAL CHARACTERISTICS OF GAMBLING 13 2.5. THE GAMBLING DEBATE 15 2.6. THE MAJOR FORMS OF GAMBLING 16 2.6.1. State Operated Lotteries, VLT's and Other Number Games 17 2.6.1.1. The Contextual Variables of Lotteries 18 2.6.2. Pari-Mutuel Wagering. ; 18 2.6.2.1. The Contextual Variables of Pari-Mutuel Wagering. 19 2.6.3. Casinos 19 2.6.3.1. The Contextual Variables of Casinos 19 2.7. THE FIRST WAVE OF GAMBLING 20 2.8. THE SECOND WAVE OF GAMBLING 21 2.9. THE THIRD WAVE OF GAMBLING 22 2.10. CASINO GROWTH AND THE RISE OF THE URBAN CASINO 25 IV 2.10.1. Casino Locations 26 2.10.2. The Urban Casino 27 2.11. CONCLUSION 29 CHAPTER 3 GAMBLING IN CANADA 31 3.1. INTRODUCTION 31 3.2. GAMBLING IN CANADA - A CHRONOLOGY. 31 3.2.1. The Early Criminal Code Years 32 3.2.2. The Miller Bill. 32 3.2.3. The Rutherford Royal Commission (1919 - 1920) 33 3.2.4. 1925 - 1950 '. 34 3.2.5. The 1954 Joint Committee 34 3.2.6. The 1969Amendment. 35 3.2.7. The 1985Amendment. 36 3.3. THE LEGALIZATION AND LEGITIMIZATION OF GAMBLING IN CANADA 37 3.4. CANADA'S GAMBLING LANDSCAPE 38 3.5. CONCLUSION 40 CHAPTER 4 GAMBLING IN BRITISH COLUMBIA 42 4.1. INTRODUCTION : 42 4.2. THE RISE OF LEGAL GAMBLING IN BRITISH COLUMBIA 43 4.2.1. The Rise of the Lottery in British Columbia 43 4.2.2. The Rise of Charity Casinos in British Columbia 44 4.2.3. The Rise of Bingo and Other Games in British Columbia: 46 4.3. BC GAMING COMMISSION - REPORT ON THE STATUS OF GAMING 46 4.3.1. Structure and Role of the Commission 47 4.3.2. Casino Gaming .<?.. 47 4.3.3. Destination Casinos in the Province 47 4.4. THE GAMING REVIEW COMMITTEE - THE LORD STREIFEL REPORT 48 4.4.1. Major Findings of the Gaming Review Committee 48 4.5. REPORT OF THE GAMING POLICY REVIEW 49 4.6. THE GAMBLING LANDSCAPE IN BRITISH COLUMBIA 50 V 4.6.1. Lotteries and Number Games in British Columbia 52 4.6.2. Pari-Mutuel Wagering in British Columbia 54 4.6.3. Charitable Gambling in British Columbia 55 4.7. RECENT GAMBLING DEVELOPMENTS IN BRITISH COLUMBIA 57 4.7.1. British Columb ia 's New Gamb ling Policy. 58 4.7.2. Request For Proposals - Destination and Charitable Gaming Facilities 59 4.7.3. BC Governments Revenue Imperative Rolls Snake Eyes 60 4.7.4. Gaming Policy Recommendations 63 4.8. CONCLUSION 65 CHAPTER 5 A CASE STUDY OF THE SEAPORT CENTRE CASTNO PROPOSAL 67 5.1. INTRODUCTION 67 5.2. THE CONTEXT OF VANCOUVER'S PROPOSED URBAN CASINO 68 5.3. HOW SEAPORT CENTRE WAS BORN: THE VPC PROPOSAL CALL 68 5.3.1. The Casino Genie Comes out of the Bottle 69 5.4. THE PROPONENTS BEHIND SEAPORT CENTRE 71 5.4.1. Vancouver Land Corporation 72 5.4.2. Mirage Resorts Incorporated. 72 5.5. THE SEAPORT CENTRE PROPOSAL 73 5.5.1. Seaport Centre Development Program 75 5.5.2. Seaport Centre: The Economic Projections 77 5.6. SEAPORT CENTRE: THE CITY OF VANCOUVER CASINO REVIEW PROCESS 78 5.6.1. Step 1: City of Vancouver Casino Review - A Discussion Paper. 78 5.6.1.1. City Image.: 79 5.6.1.2. Business, Tourism and Cultural Industries 79 5.6.1.3. Jobs 80 5.6.1.4. Problem Gambling 80 5.6.1.5. Crime and Policing. 81 5.6.1.6. Adjacent Areas 81 5.6.1.7. Housing and Real Estate 81 5.6.1.8. Existing Gaming. 82 5.6.1.9. Municipal Government Revenues and Expenses 82 5.6.2. STEP TWO: PUBLIC CONSULTATION PROCESS 82 5.6.3. STEP THREE: PUBLIC POLLING 83 5.6.4. STEP FOUR: CITY OF VANCOUVER CASINO ECONOMIC IMPACT ANALYSIS 84 5.6.5. STEP FIVE: CASINO PUBLIC HEARING 85 VI 5.7. A SUMMARY OF THE CITY OF VANCOUVER CASINO REVIEW PROCESS 85 5.8. A DISCUSSION ON THE AFTERMATH OF SEAPORT CENTRE 86 5.9. CONCLUSION 88 CHAPTER 6 GAMBLING AND URBAN CASINOS IN BRITISH COLUMBIA: PLANNING AND POLICY IMPLICATIONS 90 6.1. MAJOR FINDINGS 90 6.1.1. The Third Wave of Gambling and the Governments Revenue Imperative 91 6.1.2. The Rise of the Urban Casino 91 6.1.3. Gambling in Canada and the Transfer of Power to the Provinces 92 6.1.4. High Stakes Gambling in British Columbia 92 6.1.5. Vancouver's Dance With the Seaport Centre Casino Proposal. 93 6.2. GAMBLING POLICY ISSUES AND PLANNING IMPLICATIONS 93 6.3. AREAS FOR FURTHER RESEARCH 95 REFERENCES 97 APPENDIX A 102 APPENDIX B 110 vii List of Tables Tablet: Effects of New Provincial Gambling Distribution .- 62 Table 2: Proposed Building Program of Seaport Centre 76 Table 3: Seaport Centre Casino Profile 80 Table 4: Results of the City of Vancouver Casino Poll 84 viii List of Figures Figure 1: Gambling Handle and Revenue in the United States - 1982 -1996 •.. 12 Figure 2: The U.S. Leisure Economy - 1996 12 Figure 3: Gross Gambling Revenue Growth in Canada - 1992/93 - 1995/96 39 Figure 4: B.C.'s Gambling Landscape - 1995/96 51 Figure 5: B.C.'s Leisure Market 52 Figure 6: BC Lottery Sales - 1975 - 1996 53 Figure 7: Breakdown of the Lottery Revenue 54 Figure 8: Charity Casino and Bingo Locations in British Columbia 56 Figure 9: Charity Gambling Handle in British Columbia 1992/93 - 1995/96 57 Figure 10: British Columbia's Regulatory Framework for Gambling 61 Figure 11: Vancouver's Central Waterfront Port Lands 70 Figure 12: Artist Rendering of Seaport Centre 74 IX Acknowledgment I would like to express my sincere gratitude to my thesis supervisor, Dr. Alan Artibise, for all his help and patience during my graduate and thesis studies. I am grateful to the School of Community and Regional Planning for providing me the opportunity to challenge my mind, and for further providing me with an education that allows me to constantly explore new issues and to examine them in a critical manner.