Paragon apparent beneficiary of change
The leader of British Columbia’s New Democratic Party says casino operators won and taxpayers lost due to revenue-split changes that may have been quietly engineered by former BC Lottery Corp. chief Michael Graydon.
Graydon created a stir in 2014 when he resigned his job to take a private-sector job in the casino industry. Last July, the provincial government concluded that Graydon created in a conflict of interest when he did not reveal he was negotiating for a job with Paragon Gaming Inc. while he was running the public lottery.
Though the audit said Paragon did not receive preferential treatment from the lottery while Graydon was in control, NDP Leader John Horgan said the government did not study his role in the revenue-split changes and their potential benefits to casinos, according to the Globe and Mail.
“There was no mention of this deal that allowed operators of casinos to take more money from players and give less money back to the Crown,” Horgan said. “The business case was put together by Mr. Graydon. Mr. Graydon’s company, Paragon, now stands to benefit greatly from that.”
Before the change, casinos got 40 percent of the winnings and the lottery pocketed the rest. Now that formula has been inverted, and the casinos take 60 per cent of the money.
Finance Minister Mike de Jong said the changes are improving takes for casinos and taxpayers alike, but did not explain how, reported the Globe and Mail. He also argued that the process for change was transparent and above-board. “The process for this case was followed appropriately and a decision was made that would appear has served the interest of both parties.”
In a statement last July, Graydon said he was sorry for creating “a perception of potential conflict” when he switched jobs.
“For this,” he said, “I apologize.”
