The City of Richmond has received an unexpected $5 million windfall from River Rock Casino, which continued its winning streak last year as B.C.'s top gambling and entertainment destination.
Richmond had budgeted to receive $12.4 million in gambling revenue last year, but instead took in a record $17.6 million - up 13.1 per cent over 2012.
Casinos are required to give cities in which they operate 10 per cent of net gambling revenue. River Rock has consistently paid out more to local municipalities than any other casino in B.C. Since 1999, Richmond has received $136.7 million in gambling revenue, according to the provincial government, exceeding payouts from all the other large casinos in Metro Vancouver, including Edgewater Casino in Vancouver and the former Boulevard Casino - now Hard Rock Casino Vancouver - in Coquitlam.
"It's always been a strong performer, a flagship for us," Kiran Rao, chief financial officer for Great Canadian Gaming, said of River Rock.
It has also been a boon to the City of Richmond, which earmarks its gambling revenue for capital projects, community grants and extra policing. The latest injection will help pay off the $50 million Richmond oval, and start work on an aquatic centre and seniors' facility.
Any surplus money will be placed in a reserve fund, spokesman Ted Townsend said. That fund is not used to cover operating expenses because it is too unpredictable and can be affected by a downturn in the economy.
The city had $7.6 million in its surplus fund at the end of 2012.
"We're very conservative in our budget. We don't know (how much money is coming) until we get the cheque from the province," Townsend said. "Obviously, this ($17.6 million) is up significantly from previous years. It's a good news story for the community in that we'll be able to put it to good use."
Coquitlam Mayor Richard Stewart said Richmond's payout was a "remarkable number" and he wouldn't mind seeing a similar windfall for his city, especially following the $15-million conversion of the former Boulevard casino into Hard Rock Casino Vancouver.
Coquitlam receives about $8 million in gambling revenue annually, money that has been used to build a new library, sports centre and soccer tournament facility.
"Those are the kinds of benefits the community and sub-region get out of the casino," Stewart said.
"We're certainly wanting to do good work with the money we get."
Both Rao and Chuck Keeling, a vicepresident with Great Canadian Gambling, say they expect the Hard Rock Casino Vancouver to be a success, noting the former Boulevard had been a top performer before suffering declines in both gambling and
hospitality over the past decade as a result of "multiple challenges" such as the property's redevelopment as well as traffic disruptions resulting from the Port Mann Bridge and Highway 1 widening project.
The new facility will likely be a "smaller version of River Rock," Keeling said, with more entertainment, play tables, hospitality venues and meeting spaces.
"It was a $15 million capital spend, and there are very high expectations this will create momentum to rebuild that property," Keeling said. "We will work off our experience with the River Rock brand."
But he acknowledges it may take a while to reach the same success as the Richmond casino.
Keeling credited River Rock's success to eight different phases over the past decade, which included the introduction of the Canada Line in 2009, which allowed customers to travel from Waterfront Station to "our front door" in 17 minutes, as well as a bigger focus on entertainment to draw more regional customers.
While Great Canadian has similar aspirations for Hard Rock Casino, Keeling said, the corporation has put plans for a hotel and additional facilities on hold until it is satisfied with the revenues and "market acceptance of the brand and the facility itself."
Here are the top five recipients and the money they've collected since 1999:. Richmond $137 million;. Burnaby $121 million;. Coquitlam $94 million;. Vancouver $82 million;. New West. $80 million.
