Hard Rock could drain millions from rival casino, report says
The Hard Rock Casino Ottawa at the Rideau Carleton Raceway could siphon off up to $62 million annually from Casino Lac-Leamy, claims an economic impact report commissioned by the casino-raceway partnership, but it also states the number is not grounded in evidence.
About $318 million is being spent to renovate and expand the raceway on Albion Road, a project that aims to increase the number of slot machines by 750 and the number of gaming tables by about 35. In 2022, when Hard Rock is scheduled to be complete, the casino will have a total of 2,000 slot machines and 55 gaming tables.
The report, by the Ottawa consulting firm of Shore-Tanner & Associates, has been forwarded to members of council and city staff.
The complex will be a “superregional” entertainment venue, attracting visitors not only from Eastern Ontario, but also from Vermont and New York state, according to the report. The report predicts one-time benefits to include 3,578 construction jobs onsite, with a payroll of $161 million. Ongoing benefits include 500 new jobs with a total annual payroll of $20 million.
The city ’s share of operations was between $5.5 million and $6 million a year until 2018, increasing every year to 2022, when the expansion will be complete and the city’s share will be $12 million, according to figures from Hard Rock International. The city’s share is expected to increase by at least three per cent a year from 2023.
The report also paints an optimistic picture of spending increases on entertainment and leisure in the next decade. Households in the casino’s market area are expected to spend $8.58 billion this year on entertainment, leisure, recreation, fun and pastime products and services, both inside and outside the region. By 2028, that is predicted to reach $12.617 billion.
But the report is not clear on why it predicts Hard Rock Casino Ottawa will win over $62 million a year in business from the Casino Lac-Leamy, and concedes that the number is “not based on any factual or official information.”
“Information regarding Casino Lac-Leamy revenues, especially by customer origin, are not available. However, we have frequently heard that Ottawans spend at least $62 million annually at Casino LacLeamy.”
Lac-Leamy is one of the mostvisited attractions in the National Capital Region. About 60 to 80 per cent of the cars parked at the Casino Lac-Leamy have Ontario licence plates, said the report.
Hard Rock is also counting on casino-goers finding a new, renovated facility and the reputation of Hard Rock International more appealing than the 20-year-old Casino Lac-Leamy.
“In any case, we are confident that HR Ottawa will re-capture millions of dollars from Casino Lac-Leamy annually.”
Late last year, the casino partnership revealed that it intended to add more slot machines to the casino, shocking some city councillors who believed that a 2013 agreement with Ontario Lottery and Gaming Corp. to limit gaming offerings to 1,250 slots and 21 live table games was still in place.