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Non-Tech : Sungold Gaming International (SGGNF)

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To: Carol Barnes who wrote (3118)2/3/1999 8:03:00 AM
From: L. D.  Read Replies (1) of 5164
 
Good article to read with our morning cup of coffee.
I'm definitely not implying anything.
Today's G&M;

B.C. casino proposal decried a cash
grab Government acting like a dictatorship with
slot-machine plan, Vancouver mayor says

Wednesday, February 3, 1999
ROSS HOWARD
British Columbia Bureau

Vancouver -- The B.C. government is behaving like a
dictatorship in ignoring municipal objections with its legislative
proposals to cement its complete control over casinos,
Vancouver-area mayors and Opposition politicians say.

"It's incredible. We had a democracy, we're going toward a
dictatorship," Vancouver Mayor Philip Owen said of draft
gambling legislation unveiled yesterday that, among other
moves, would allow slot machines in casinos despite municipal
objections.

"It's a desperate government riding roughshod over the
municipalities in a cash grab," Liberal health critic Sindi
Hawkins said.

The proposed legislation would give the government free rein
in operating the 17 former charity casinos it recently took over
and allocates most of the revenue to the province, Industry and
Employment Minister Michael Farnworth confirmed yesterday.

Under the new plans, the province would get to keep almost
$330-million annually from its casinos in the first two years and
nearly $400-million within five years. Charities would initially
be guaranteed $125-million a year, increasing up to one-third
of overall revenues. Currently, charities gather barely
$125-million from B.C.'s 17 casinos, and the provincial
government is left with only about $10-million.

In an unexpected move, the government also said it will pay 10
per cent of its take to the dozen municipalities that are home to
the casinos. Municipalities currently do not get any of the
casino revenue.

The proposed legislation would confirm that provincial
authority supersedes any municipal bylaws concerning
gambling and that the province "has sole jurisdiction over the
existing casinos," Mr. Farnworth said.

Five new casinos have already been approved at resort
locations and five more are to be selected, subject to local
community approval, he added.

Mr. Farnworth refused to confirm that the government intends
to proceed with installing slot machines in the five opposed
municipalities as soon as the legislation is passed.

But the minister's extensive revenue calculations are all based
on full-scale introduction of slot machines in every casino, Mr.
Farnworth's advisers told reporters.

The B.C. government can expand and operate its 17 casinos
as it wishes despite municipal objections, and "yes, it's all
based on full-scale operations," including slot machines, said
Frank Rhodes, Mr. Farnworth's chief adviser on gambling
and author of yesterday's legislation package.

Municipal bylaws and court challenges have blocked nine
casinos -- all of them in the densely populated Vancouver and
Victoria areas, which have nearly three million people -- from
operating lucrative slot machines. The new legislation would
override those obstacles.

At the same time, the B.C. government will completely
abandon the charity-bingo business except for supervisory
regulations, leaving charities an estimated $60-million in annual
revenue.

While the private companies that operate the casinos for the
government declared themselves "fully pleased with the
government," in the words of spokesman Jacee Schaefer
yesterday, the urban detractors remained opposed.

Surrey Mayor Doug McCallum has also vowed to continue
obstructing any expansion of an existing casino in his
community, and several other municipalities have also said they
remain opposed to any expansion of existing gambling, and to
any new casinos.

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