The idea to introduce casino gaming in Nova Scotia in order to stimulate tourism first surfaced in the early 1970s when a study of the experience with gaming in the United States and Europe was commissioned. It took another twenty years before the issue of casino gaming emerged again. Other forms of commercial gaming have been big business in Nova Scotia for a long time. Lotteries, bingo, betting on horse tracks, and, more recently, video lottery terminals (VLTs) registered a total wager of approximately $500 million in 1993.
It is somewhat ironic that the momentum for casino gaming started at a time when public sentiment was divided, if not outright hostile, toward gaming. In fact, sparks literally flew in the wake of the government’s decision to remove VLTs from non-age-controlled premises such as convenience stores, laundromats, and bowling alleys in February 1993. Store owners were justifiably incensed about the unexpected loss of revenue, whereas the vocal opponents of VLTs argued that this step was necessary to keep minors away from gaming. The government was somewhat caught in the middle, and it responded with a review of the gaming laws. A subsequent report struck a cautious note with a recommendation not to expand gaming in Nova Scotia until the residents had a chance to express their views on this matter. In the meantime, the Nova Scotia Lotteries Commission conducted an independent study on gaming with specific reference to VLTs, casinos, and bingo. After carefully weighing the pros and cons of casino gaming and taking account of a survey that found that 59 percent of the respondents were not in favor of introducing casino gaming to Nova Scotia, the study group made an interesting recommendation. Two casino pilot projects should be granted – one in the Halifax-Dartmouth Metro Area and the other one in Cape Breton – for a one-year trial period in order to monitor and assess the impact of casino gaming and its acceptance by the residents.
The interest in operating casinos was enormous: The study group received no less than thirteen proposals to do so, and among them were fairly detailed project descriptions by Hilton and Grand Casinos. The Hilton proposal suggested building a casino in a Halifax landmark hotel, the 1928 Hotel Nova Scotian, which was being operated by Hilton Hotels after a complete renovation in 1988. This proposal was endorsed by the Halifax Board of Trade.
Grand Casinos suggested a large hotel–casino–resort complex in the Ragged Lake Industrial Park Area outside Halifax; no surprise here that this proposal was supported by the Halifax Industrial Commission. What was surprising was the entire fanfare and promotion of these two proposals, and particularly the one of Grand Casinos, since it must be remembered that the introduction of casinos was not even on the drawing board.
All of this and the report itself became history with a change in government. But the casino issue did not fade into oblivion. After only four months in office, the new government resurrected the thorny issue of gaming in Nova Scotia and empowered the House Committee on Community Services to conduct hearings all over the province on the issues of whether casino gaming should be introduced and whether VLTs should be brought back to convenience stores. In its report, the committee recommended (1) that casino gaming should not be introduced in Nova Scotia or, more specifically, that it should not yet be introduced because too little was known about the socioeconomic impact of gaming, and (2) that in view of the potential harmful effect on Nova Scotia’s reputation as a nature-oriented and peaceful tourist attraction, VLTs should be in age-controlled premises only.
To everyone’s surprise, the government did not follow the committee’s line of thinking. In a complete turnaround, it was announced that casino gaming would be introduced, and the sooner the better because of its beneficial impact for the province. This meant a fast tracking period for casino gaming. The reasons for this move lie in the dire situation of provincial coffers: Nova Scotia has one of the highest ratios of public debt per capita in Canada, and it suffers from persistent double-digit unemployment. Casino gaming as a very labor-intensive business was simply seen as an opportunity that could not and should not be missed.
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