Casino Lac-Leamy will lose out when Hard Rock moves in, report predicts

An economic impact study on the proposed expansion of the Rideau Carleton Raceway predicts hundreds of new jobs, millions of dollars in new tax revenue, a big boost to payments to the city — and a serious dent in earnings for Ottawa-Gatineau's other casino.

Local firm Shore Tanner and Associates did the assessment for the Hard Rock Casino, which would add a hotel, theatre, several restaurants and more gaming tables and slots to the south Ottawa facility.

Two council committees will consider whether to approve the expansion in May.

The report estimated roughly 3,500 construction workers would be needed during the expansion, along with $7 million in HST generated for the government.

After construction is complete, the facility is estimated to add 500 new permanent jobs with a combined payroll of $20 million per year.

60 to 80 per cent Ontarians at Lac-Leamy

The firm estimates it could pull as much as $62 million a year in business that currently goes to Casino Lac-Leamy in Gatineau.

"Based on field research over the years, approximately 60 to 80 per cent of the cars parked at the Casino Lac-Leamy in Hull have Ontario license plates," the report said.

"It is entirely reasonable to believe that a significant number of Casino Lac-Leamy's customers and revenues have historically been from Ottawa … We are confident Hard Rock Ottawa will recapture millions of dollars from Casino Lac-Leamy annually."

Casino Lac-Leamy spokesperson Catherine Schellenberg said they're aware they will face competition, but have also invested heavily in improving their own building.

"We're definitely keeping an eye on what's going on. Competitiveness is part of the gaming industry — it always has been," she said.

She added the casino has excellent staff and a history in the community that she believes customers will value.  

"I think we have what it takes to bring them back or keep them coming."

The city also gets a direct cut of gambling revenues at the facility, which until 2018 has been between $5.5 million and $6 million annually, according to the report.

The expansion, which would be complete in 2022, would see that grow to $12 million.

Major draw 

The study determined that the renovated and rebranded casino would be a "super-regional facility" drawing in people from as far away as Kingston, Hawkesbury and even dipping into Vermont and northern New York State.

Its authors also determined it would keep people who live in the Ottawa area spending money here.

"It is reasonable to expect the Ottawa households to spend more time at this facility, and less at similar or competitive facilities in Montreal, Toronto," the report said.

Earlier this month, Ottawa Public Health asked for an additional $200,000 a year from the province to help problem gamblers.

The agency argued that an increase in gaming at the facility would lead to an increase in problem gamblers who would need help with their addiction. 

Residents at public consultations on the expansion have raised concerns about the increased traffic on Albion Road.