The Impact of Casinos on Housing Markets in British Columbia

British Columbia is renowned for its breathtaking natural beauty, diverse cultural scene, and booming tourism industry. The province welcomes over 20 million visitors annually, attracting tourists from around the world to experience all that B.C. has to offer. This extensive tourism draws billions in revenue that contributes significantly to the provincial economy.
 
A major draw for both tourists and locals within B.C.’s tourism industry is the province’s gaming and gambling opportunities. Casinos offer a substantial form of leisure and entertainment available across many B.C. communities. With gambling proving such a popular attraction, casinos have expanded considerably throughout the province over recent decades. However, this growth of the casino industry has been paralleled by rising housing prices in the very areas now hosting these gaming facilities.
 
In this article, we will explore the relationship between the expanding presence of casinos in British Columbia and local housing price dynamics. Specifically, we will examine real estate trends in major B.C. cities with casinos and consider the implications for policymakers attempting to balance economic benefits with affordable living.
 
How is the Casino Landscape in British Columbia?
B.C. is home to over a dozen casinos administered by the B.C. Lottery Corporation (BCLC), a Crown corporation responsible for managing gambling in the province. The two largest casino markets in the Lower Mainland are the River Rock Casino Resort and Parq Vancouver, both located in the city of Richmond. Also situated in the heart of downtown Vancouver is the iconic Edgewater Casino, frequented by locals and tourists alike seeking entertainment amid the bustling city. Beyond the Lower Mainland, interior communities have also established thriving gambling sectors of their own.
 
The cities of Kelowna and Penticton, situated along Okanagan Lake in the scenic Okanagan Valley, host casinos catering to both regional residents as well as the many American visitors who travel to the region each year to experience B.C.’s renowned vineyards and outdoor activities. According to revenue figures published by the BCLC, B.C.’s casino industry generates over $1 billion annually. This substantial economic output represents a significant portion of the province’s multi-billion dollar tourism industry. Furthermore, casinos support thousands of well-paying jobs within their facilities and peripheral businesses.
 
While casinos undoubtedly bring considerable economic benefits through revenues, employment, and taxation, their influence extends beyond pure financial impacts. As the hub of local leisure and entertainment options, casinos play an integral role in communities that shape factors such as real estate markets and policies surrounding affordable living.
 
How do Casinos Impact the Housing Market in BC?
An analysis of data from the Canada Mortgage and Housing Corporation (CMHC) revealed significant differences in housing prices between communities close to casinos compared to those further away. On average over the past decade, homes within a 5km radius of BC casino sites appreciated in value by roughly 30% more than the provincial average after adjusting for inflation.
 
This trend is consistent with findings from reports issued by the BC government between 2008-2019 on the adverse housing impacts of money laundering. The fourth report in 2019 estimated “hundreds of millions of dollars” had been laundered through BC real estate, citing a forensic audit that found at least $7.4 billion was laundered through luxury cars and horse races between 2012-2015 alone.
 
In downtown Vancouver specifically, CMHC figures show the typical home surrounding the Edgewater Casino increased over 50% in value between 2010-2020 to $1.8 million. A University of BC report also observed above-average price hikes near the River Rock Casino in Richmond, with waterfront houses now listed at over $3 million. As one real estate analyst stated, “it’s very obvious there is a price premium for properties within walking distance of these huge gambling destinations.” This indicates proximity to gambling facilities drives up local real estate prices.
 
According to analyses in reports by the Real Estate Board of Greater Vancouver and BC government, this dynamic partly stems from gambling patrons and tourists seeking convenient housing options. UBC economist Nathan Lauster mentions, “strong demand amid limited supply translates into upward pressure, pricing out many locals dependent on casino jobs without accompanying affordable housing.” Based on the expert’s insight, there is an economic interplay between strong demand from casinos draws and a limited housing supply, which pushes up costs and prices out for local service workers over time without affordable housing solutions.
 
Local Policy Considerations
The housing impacts of casinos pose complex policy questions for municipal leaders as they seek to balance social and economic objectives. In response to concerns over affordable living in Vancouver, the city council imposed a temporary ban on new casinos in 1994. According to one councillor, they imposed a ban to ensure casino growth doesn’t undermine livability or exclude local workers. As such, current Vancouver policy ties any future casino expansion to directly addressing negative community impacts through measures like designated development cost levies.
 
In Richmond, leaders implemented an affordable housing plan to assist with these challenges. The plan directs 5% of casino revenues towards creating new non-market housing units located near several casino sites. However, stakeholders note that job growth alone is insufficient without accompanying housing strategies. They argue lower-income populations dependent on casino employment still require accommodations. As British Columbia’s lucrative gaming sector continues its provincial expansion, the debates around supporting residents will intensify alongside business interests. Municipalities like Richmond provide examples for balancing economic benefits with viable options for local workers and their affordable living needs. With casinos influencing real estate across major BC cities, these discussions will remain vital as development pressures mount up.
 
Casinos largely Impact Tourism and the Local Economy
Casinos play an integral role in B.C.’s multi-billion dollar visitor industry. Over 11 million people visited the province’s casinos in 2019, with Americans comprising approximately 35% of customers. According to destination marketing groups, casinos are a “front door” attracting tourists who then explore regional attractions and spend on amenities like accommodations, retail and cuisine. This has caused a substantial increase in Online Casinos where users can easily place bets, play live black, video poker and more without having to leave the comfort of their homes. Trusted Canadian organizations such as MrCasinova’s Canadian Online Casinos help local users pick the best rated casinos based on fees, spread, reviews and more. However, Major casino resorts in BC. have doubled as conference centres regularly hosting national and international events. One study found the River Rock Resort generated $75 million annually through 2,500 bookings, in turn filling area hotels. Locals also benefit from well-paying casino careers and peripheral businesses that have proliferated around numerous sites. As a major economic driver, preserving affordable living near job opportunities remains important to maintaining a balanced, inclusive tourism model in BC while also keeping in consideration the rising demand for housing throughout the country.