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APRIL 23, 2013 CITY OF KITCHENER
A special meeting of City Council was held at 6:02 p.m. this date, chaired by Mayor C. Zehr with all
members present.
Notice of this meeting had been previously given to all members of Council by the City Clerk pursuant
to Chapter 25 (Council Procedure) of the Municipal Code.
Messrs. Larry Flynn, SVP - Gaming, Paul Pellizzari, Executive Director - Policy & Social
Responsibility and Jake Pastore, Director - Community & Municipal Relations, addressed Council on
behalf of the Ontario Lottery and Gaming Corporation (OLG) to present an overview of the OLG's
plan to modernize its lottery and gaming operations. Mr. Flynn advised that over the last seven
years, OLG has contributed $1.713 to $213 annually to the Province. He added that OLG also annually
contributes $40M to Ontario's problem gambling strategy. He stated that part of the OLG's
modernization plan will see the development of at least one gaming facility in each of the 29 zones
identified across the Province. He noted that zone SW1 includes the Region of Waterloo, which
currently has 83,000 residents who are members of OLG's loyalty program.
Mr. Pastore further advised that the OLG has engaged 68 communities across the Province, with
approximately 39 municipalities expressing support for the modernization program. He added that 10
communities indicated support for neighbouring municipalities and 12 municipalities from outside of
the gaming zones have expressed an interest in participating. He suggested that Kitchener could
contact the 24 municipalities that currently host OLG gaming facilities as a means of garnering further
information on this matter. He reviewed the process that is being followed by the OLG, indicating that
the Ontario Lottery and Gaming Corporation Act stipulates that interested municipalities must
undertake public consultation and have the ability to back out of being considered a host site at any
step in the process. He advised that the Premier of Ontario has stressed that the OLG shall not
locate a facility in a municipality that has indicated it does not wish to be considered as a host site. In
addition, the location of the gaming facility must be amenable to the host municipality. He noted that
the SW1 zone has been identified as potentially hosting 1,200 slot machines and 50 gaming tables.
Mr. Pellizzari then presented information on the OLG's role in ensuring responsible gambling in
Ontario. He advised that Ontario is considered to have one of the best Responsible Gambling
structures in the world. He stated that OLG staff is trained to identify red flag behaviour and direct
people suspected as having a gambling problem to free counseling. He estimated that 150,000
Ontarians are assisted each year through the Responsible Gambling Centres located at all gaming
facilities and off -site counsellors in 20 offices across the Province. He commented that the OLG does
not want problem gamblers, noting that it is a bad businesses model as well as being bad for public
health. He stated that as part of the modernization, the OLG will be implementing technology to set
time / money limits on slot machines, driven by data analysis of play patterns. In addition, the OLG
has implemented an education program to help people make an informed choice about gambling.
In response to questions, Mr. Flynn advised that while he does not have specific data related to
Waterloo Region, approximately 55% of the OLG's gaming customers are at or above the median
earning level. He stated that since November 1999, the City of Brantford has received approximately
$50M for being a host municipality, which was applied toward their infrastructure needs. He added
that the Premier of Ontario has directed that the funding formula needs to be fairly applied across all
zones; therefore, municipalities with existing facilities should serve as good case studies into the
benefits of hosting. He indicated that the total revenue generated in 2012 by the OLG was
approximately $6.513, noting that $213 of this amount went to the Province. Mr. Pellizzari commented
it is challenging to accurately identify the number of suicides and / or bankruptcies directly associated
with gambling. He stated that as the operator of these gaming facilities, OLG is committed to
providing the most robust program it can to provide help to mitigate problems. He added that in 2012
there were 158,376 interactions at the Responsible Gambling Centres. He noted that the OLG gives
$40M to public health, in addition to the $13.8M spent on their own programs aimed at educating the
public as to the risks associated with gambling. Mr. Flynn further advised that the Ontario Lottery and
Gaming Corporation Act clearly outlines that the OLG is to engage lower tier municipalities, who may
choose to share a portion of their hosting fees with a regional government and / or neighbouring
municipalities.
Dr. Liana Nolan, Waterloo Region Medical Officer of Health, circulated copies of the position
statement issued by Region of Waterloo Public Health in December 2012, on the health impacts of
problem gambling. She advised that problem gambling will increase in Waterloo Region with the
proximity of a casino because of increased access. She stated that revenues are generated from
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gambling losses, which are unevenly distributed among those who are least able to afford such
losses. She stressed that the revenue generated by gambling relies in part on problem gamblers and
current measures to prevent problem gambling have had limited effectiveness. She advised that it
has been estimated that 5.5% of the clients in Ontario casinos are addicted to slots and generate
31% of the revenues from those machines. She added that 12.1% of the clients are addicted to table
games and generate 57% of revenues. Dr. Nolan further advised that it is estimated that 1.2% to
3.4% of the population of Ontario have moderate to severe forms of problem gambling. She added
that with a casino in Waterloo Wellington, this increased access would result in approximately 8,800
high severity problem gamblers and 26,300 moderately severe problem gamblers. She noted that
every problem gambler affects about 2.8 family members; therefore, 98,000 family members would
be affected by a casino in this area. She indicated that the Canadian Community Health Survey Data
suggests the prevalence of problem gambling in Waterloo Region is currently estimated at almost half
the provincial average. She commented that the main health impact of gambling is that in some
individuals it leads to problem gambling, which then impacts the overall community.
Mr. Mark Bingeman, Bingemans Grand Experiences, circulated an information package to Council,
outlining reasons in support of having an OLG gaming facility located in the City of Kitchener. He
advised that the City could receive $4M to over $8M annually in potential hosting fees. He estimated
that the City, as well as the Region of Waterloo, could garner in excess of $7M in development
charges and permit fees. He added that this new development would also generate significant
property tax revenues annually for the City and the Region. He spoke to the potential tourism
benefits associated with a casino, suggesting that it could draw over 700 bus tours from one bus tour
operator. He put forward that it would result in immediate construction jobs, estimating that building a
casino in Kitchener would result in over $250M in private sector investment. Mr. Bingeman advised
that once completed, a casino would employ over 1,500 people which could put over $35M in payroll
dollars back into the community. He commented that the City could use the additional revenues
generated by a casino to help bolster local arts and culture, infrastructure and / or social services.
Mr. Sean Simpson, Ipsos Reid, circulated copies of a survey conducted by his company on behalf of
Bingemans Grand Experiences from April 10 to April 15, 2013. He advised that this survey sampled
502 Kitchener residents who were interviewed by telephone, adding that quotas on age and gender
were used to ensure balanced demographic sampling. He stated that a survey with an unweighted
probability sample of this size has an estimated margin of error of +/- 4.4 percentage points, 19 times
out of 20, of what the results would be had all Kitchener residents been surveyed. He gave an
overview of the survey results, indicating that most residents are aware of the OLG's plans to consult
municipalities on their interests in a casino. He stated that most appear to have at least some degree
of knowledge about what a casino could mean for the City, adding that two thirds want to learn more
about the various proposals that might come forward to build a casino; and, the associated impacts
that it could have on the City.
Mr. Rob Simpson circulated materials outlining his opposition to a casino being built in the City of
Kitchener, highlighting the economics of a new casino in Waterloo Region. He gave a presentation
indicating that a casino would result in a net outflow of $180M, which would have gone toward
entertainment and leisure activities based in Waterloo Region. He stated that minus the $50.5M
inflow into the Regional economy related to wages and hosting fee, this equates to an annual overall
loss of $129.5M for the local economy. He noted that such a loss would profoundly harm local
businesses and jobs. In addition, a casino would harm the community due to the increase in problem
gambling.
Ms. Nicole Gatchene, Kitchener Youth Action Council (KYAC) addressed Council in opposition to the
City of Kitchener being a host municipality for an OLG gaming facility. She advised that KYAC is
concerned that if Council agrees to host a casino that this would equate to consenting to gambling.
She stated that a 2009 survey of Ontario students indicated that 42.6% had gambled despite it being
illegal. She suggested that if approved, a program should be implemented to educate youth as to the
dangers of gambling.
Mr. Matt Jantzi spoke in opposition to a casino being built in Kitchener, commenting that casinos
foster a number of social problems. He stated that if a casino was built in close proximity to
Kitchener, this would also have a negative impact on this community, with little to no economic
support to address those challenges. He encouraged Council to say no to the OLG and reach out to
the Township of Woolwich and ask that they reconsider their decision to host a casino.
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Ms. Barbara Spronk, Poverty Free KW Action Group, gave a presentation outlining her organization's
opposition to having a casino located in the City of Kitchener. She advised that a casino would result
in increased expenditures to address social problems within the community. She commented that
casinos offer a false sense of hope, particularly to low income households. She added that 9% of
Kitchener's population is low income, which is higher than any other municipality in Waterloo Region.
Ms. Ginny Quinn addressed Council in opposition and expressed concern with the decision made by
the Township of Woolwich to consent to potentially hosting a casino. She noted the various tourist
attractions that currently existing in this community, commenting that a casino is not needed to draw
people to Waterloo Region. She suggested that the small financial allocation the City would receive
from the OLG would not offset the numerous negative impacts of a casino.
Pastor Vidya Narimalla, Kitchener Mennonite Brethren Church, submitted a petition signed by 110
members of his Church who are in opposition to having a casino built in the City of Kitchener. He
questioned the benefits of hosting a casino, stating that casinos are not a viable form of economic
development; rather, it is a regressive form of taxation aimed at a vulnerable portion of society.
Ms. Christiane Sadeler, Waterloo Region Crime Prevention Council, circulated a position paper
outlining her organization's opposition to casinos and proposing 12 recommendations to mitigate the
negative impacts associated with problem gambling. She advised the data shows that a direct link
between the presence of a casino and increases in crime as being inconclusive; however, it does
demonstrate growth in the risk factors for crime. She stated that population health research indicates
that the opening of a casino leads to a direct increase in problem gambling within a community. She
added that the outcomes of problem gambling tend to not only negatively impact the individual, but
also can create significant community and social costs.
Mr. Les Holdway, C5 - The Centre for Corporate Communications and Competition, addressed
Council in opposition to having an OLG gaming facility located in the City of Kitchener. He advised
that when the slot machines were installed in Elora, the OLG indicated that they intended to be long-
term partners with the community; however, it does not appear that the OLG will be extending the 20-
year agreement it has with Elora. He noted that the slot machines at the Elora racetrack have had
little influence on tourism in that area.
The meeting then recessed at 8:00 p.m. and reconvened at 8:05 p.m. chaired by Mayor C. Zehr with
all members present.
Ms. Chaitanya Jyoti Parivrajika, Brahmarishi Mission of Canada, addressed Council in opposition to
having an OLG gaming facility located in Kitchener, noting how gambling goes against the tenets of
her religion. She commented that gambling can poison the mind, body and spirit and lead to an
unhappy and unproductive society.
Mr. Randall Templeton, Trinity United Church, submitted a petition signed by 183 members of his
Church who are in opposition to having a casino being built in the City of Kitchener. He expressed
concerns regarding the negative impact that a casino would have on the local economy as well as the
estimated increase in the number of problem gamblers. He commented that if a casino is built in the
Township of Woolwich, the City should seek some form of legal redress to mitigate the costs
associated with increased spending toward social programs and crime prevention.
Mr. Michael Kellett registered as a delegation to speak to this matter; however, he was not in
attendance this date.
Mr. Clint Rohr, Woolwich Concerned Citizens Against Gambling Expansion in Waterloo Region, gave
an overview as to why he opposes the construction of a casino anywhere in the Region of Waterloo.
He stated that it is the position of his organization that the decision made by the Council of the
Township of Woolwich is an infringement on the rights of all residents of Waterloo Region, suggesting
that a question as to whether an OLG gaming facility should be located in this Region should be
added to the ballot of the next municipal election.
Mr. Shayne Sangster, Kitchener Centre New Democrats, addressed Council in opposition to having
an OLG gaming facility located in Kitchener. He suggested that a casino would be counterproductive
to the economic investments the City has made in its Downtown core. He commented that it was
unlikely the OLG would build a resort casino, such as Casino Niagara or Casino Rama, estimating
that a smaller scale casino would be constructed in Kitchener. He stated that it is doubtful a casino in
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Kitchener would be able to attract gamblers from outside of this region; thereby, relying on the local
economy to generate revenues.
Ms. Trudy Beaulne, the Social Planning Council of Kitchener - Waterloo, circulated copies of her
speaking notes, which convey her organization's opposition to locating a casino anywhere within the
boundaries of the Region of Waterloo. She commented that the only way a casino makes a profit is
at the loss of it patrons, adding that this is not a healthy business proposition from which to
encourage responsibility or healthy community development. She asked that an objective
assessment be undertaken to determine the overall impact that a casino would have on the
community.
Mr. Douglass Grant advised of the negative impact a casino had on the community of Sydney, Nova
Scotia. He outlined his personal knowledge of the detrimental effects of gambling and urged Council
to reject the proposal to have an OLG gaming facility located in the City of Kitchener.
Mr. Richard Christy, spoke in opposition to the OLG's proposal, advising that as Mayor of the City of
Kitchener in 1996, he convened a meeting with his counterparts from neighbouring municipalities and
at that time, it was agreed to reject a similar proposal from the Provincial Government to have a
casino built in this area. He referred to a book entitled "The Luck Business" which outlines the
adverse effects of legalized gambling on municipalities in the United States of America. He
acknowledged the difficulties of resisting the potential revenues generated by a casino, particularly
given the possibility of one being built in an adjacent municipality. However, in his opinion, rejecting
this proposal was the right decision in 1996 and continues to be the right decision for the City of
Kitchener.
Mr. Jan d'Ailly, expressed concern with what he views as an attempt by the Provincial Government to
earn additional revenues by increasing the number of casinos in Ontario. He commented on the
potential detrimental impacts that this could have on the health and safety of the community.
Ms. Annette Anderson was in attendance and expressed her opposition to having a casino built in the
City of Kitchener.
Ms. Emely Tscholy recited a quote from her father that "casinos weren't built by winners."
Mr. Bill Schneider conveyed his opposition to having a casino located within the Region of Waterloo.
He commented that the Township of Woolwich does not have the mandate to commit the entire
Region to having a casino. He suggested that the City of Kitchener should set out a condition that
further dialogue on this matter would only move forward if the Township of Woolwich agrees to
withdraw its support for a casino.
Moved by Councillor F. Etherington
Seconded by Councillors S. Davey
"That leave be given the Mover and Seconder to introduce a by -law to confirm all actions and
proceedings of the Council and that the same be taken as read a first, second and third times, be
finally passed and numbered 2013 -053 by the Clerk."
Carried.
On motion the meeting adjourned at 8:50 p.m.
MAYOR CLERK