The River Rock Casino and Resort posted a 15 per cent decline in gaming revenue in its second quarter this year, when compared to 2014, which, notably, was the casino’s best quarter on record.
This year’s second quarter numbers from the River Rock are still well above any quarter posted in 2013.
The casino raked in $32.9 million, from April to June, compared to last year’s figure of $38.8 million.
For the first half of 2015 gaming revenues are down seven per cent over last year’s record performance, which saw the City of Richmond take home a cool $21 million for its municipal gaming fund.
Late last year the Great Canadian Gaming Corporation, the River Rock’s parent company, spent $2.5 million to attract big gamblers, most of who originate from China where baccarat is a popular game.
The casino renovated the Salon Prive VIP gaming area to provide 3,500 square feet of high roller gambling.
As well, the casino added 15 additional VIP baccarat tables.
Furthermore, the casino also replaced six stand-up tables with sit-down tables to accommodate the “mid-level premium mass market.”
The casino saw the lowest amount of money wagered on tables ($282 million) — or at least the lowest amount of chips purchased — in five quarters.
This was attributed to a decrease in high-limit play.
Richmond receives 10 per cent of net gaming revenues from the casino, minus certain costs such as BC Lottery Corporation overhead and support, and casino operating expenses.
Each year, the city budgets for less money than it received the year prior. For 2015, the city has budgeted to receive $18 million from gaming revenue, meaning an annual loss of about 14 per cent is the cushion.
Next year, a new spending formula approved by council this year will allocate about 70 per cent more money to social grants while maintaining the policy of mostly funding infrastructure from the revenue stream.
Earlier this year, a $3 million Council Community Initiative Account was created from a $15 million surplus of unallocated funds.
The other $12 million will be put in the capital reserve account for infrastructure improvements.
Starting in 2016, two per cent of revenues will be used to top up the community initiative fund, annually.
Over the next 10 years, casino money will be used to pay off a $50 million loan for the new Minoru recreation complex.
