A Canadian city is BETTING on a planned new casino to fund housing for the homeless.

A recent study put the cost of eliminating homelessness in Nanaimo, British Colombia, at more than £22 million.

Now proceeds from a tax on the Great Canadian Casino at Port Place Mall will be spent buying land for low-income accommodation.

City’s Dream

And city councillors who have just voted for the new tax expect income to rise as the casino expands.

The city already takes 10 per cent of local gambling revenues — around £1.5 million — through a tax on slot machines.

It says the charge pays for local police and reduces other city taxes.

But city chiefs may be waiting a while to realise their dreams of cheap homes. Planning permission for the new casino has yet to be applied for and construction is expected to take at least a year once the project starts.