British Columbia’s gaming regulator is currently assessing whether Paragon Gaming, the company that is responsible for the implementation of the Edgewater Casino project, is capable of meeting the necessary conditions. The construction of the resort will cost about $535 million and it is to be located in the center of Vancouver.
A previous examination was carried out in July, concerning Michael Graydon, former CEO of B.C. Lottery Corporation and current chief of PV Hospitality, a subsidiary of Paragon Gaming. The Ministry of Finance announced that the Gaming Policy and Enforcement Branch (GPEB) has developed its review further, paying more special attention to Edgewater Casino ULC’s appointment as gaming distributor.
GPEB released its report at a time when yet another governmental investigation was carried out, regarding Graydon and his being still CEO of B.C. Lottery Corporation when he applied for a position at Paragon Gaming towards the end of 2013.
Apart from being concerned with Edgewater Casino’s viability to meet the conditions it is required to, the GPEB’s review will also attempt at determining whether Graydon should be registered as a gaming employee.
David Eby, representative of the Opposition and gaming critic, had sent to GPEB a number of questions about Graydon’s position at PV Hospitality. Due to this, he was the first to be informed about the review and its widened scope. He commented on the situation as indicative of the project’s numerous inconsistencies.
According to Eby, the investigation of Paragon, being the gaming provider of the Edgewater Casino, “is a major issue for this entire development.” He also posed a question whether GPEB’s review paid attention to the problems Alberta’s Eagle River Casino, a result of the collaboration between Alexis First Nation and Paragon Gaming, had faced in January, 2014. Back then, the gambling venue was “losing over a million dollars a day”, as Eby claimed. It seems that he considers it quite illogical for a gaming operator to be filing a bankruptcy case and to be responsible for the development of another casino at the same time.
The Ministry of Finance announced that the process of examination might take up to several months. Due to this, they refused to provide further information. A Paragon spokeswoman ensured that the company was utterly cooperative but she also did not comment on the question whether GPEB’s review was concerned with the Eagle River’s financial situation.
Paragon and three more companies are currently working on a joint project, involving the construction of two hotels, shopping space, a special conference center and a new building for the Edgewater Casino in downtown Vancouver. It is to be completed and launched in 2016 and more than $500 million will be invested in it.
