London Councillors raise questions about Gateway's casino plans

A Canadian casino giant has provided an inside look into a proposed east end casino and hotel complex — fully equipped with an eight-storey hotel and an entertainment strip with restaurants, slots machines and table games.

• Gateway to lay out casino expansion plans in London

However, city councillors raised a string of questions on Monday — many left unanswered.

Gateway Casinos and Entertainment Limited officials outlined to the city's Strategic Priorities and Policy committee a possible floor plan for an extension to the slots at the Western Fair District. The floor plan is only an example of what could pop up in the east end should the project get the go-ahead.

The casino giant is currently operating under a lease that expires in 2020 at a rate of $6.2 million a year.

Rob Mitchell, director of public affairs, said if the project isn't approved for the Western Fair District, it will operate elsewhere in the city.

"London is the market for us," he said. "The kind of entertainment we offer here, we source locally from the community and this is a great area known for its agriculture and food and farming community."

• Gateway Casinos seeks more band for its buck at the Western Fair District 

The $140-million two-phase development project would unfold over two years:

Phase one would maintain the existing operational structure and focus on building the casino, a public gallery, and a strip for food and beverage services. There would also be room for about 50 game tables and 1,200 slots machines — a jump from the current 730.

Phase two would see a smaller grandstand and an eight-storey, 125 bedroom hotel for casino-goers. The casino and hotel complex would add an additional 700 jobs to its current staff of 300 employees.

Questions raised

Although the committee didn't make a final decision -- only voting to accept the delegations from Gateway and Ontario Lottery and Gaming officials -- councillors raised many questions related to:

Casino parking: Gateway officials said 12 acres of land would be designated for surface parking and further development. The proposed demolition of an existing building would help add more parking.

The Raceway: will continue to operate under Western Fair staff, who will have the final say on its fate.

Problem gambling: OLG officials said Ontario has seen a stark decrease in problem gambling among adults in the last decade — dropping from from 5.8 per cent to 1.2 per cent of the population. However, the province still spends about $60 million per year tackling problem.

Competition with Budweiser Gardens: wouldn't be a problem because the proposed facility wouldn't have an entertainment hub.

Unanswered questions

Several councillors are concerned about the fate of the annual Western Fair and others asked about public consultations.

"I'm not satisfied that we could just say yes to a casino sitting in the middle of the city. I'm very concerned that the public has never agreed to that," said Coun. Harold Usher. "They agreed to slot machines in the city, which is a smaller entity."

City staff will recommend the next steps for council.