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Issue 53 October, 1998 Market pushing casinos to expand, broaden focus Shortly after we started our publica- the Belle, Rama and Niagara; tion in May of 1994, we got a tele- added and Hull; phone call from someone asking if Saskatchewan added Regina and they could subscribe for 6 months as four First Nation casinos, while opposed to our normal 12 month pe- Nova Scotia got Halifax and Syd- riod. When asked why, we were told ney. Ivan Sack they expected that by the end of 1994 All were stand alone casinos with, all the gaming news of consequence as the theory went, patrons rushing being given more freedom to respond would be out and there would no into the streets to attend conven- to the demands of the markets they longer be a need to follow this indus- tions, eat or buy slippers for granny. serve. try. We are pleased to say that this The initial public thirst for casinos firm is still a subscriber and, as read- Casino de Montreal was the first to was such that governments could add a 500-seat dinner showroom. ers will know, the news is certainly afford to let political posturing sus- not all out. Rama Casino followed suit by pend 'market realities'. They took adding a summer concert series, now As with industries such as telecommu- casino visitors in through their front in its second year with the likes of nications, auto, aerospace, computers doors, shook the coins out of their Paul Anka, Kenny Rogers, Aretha and software, our industry is con- pockets, and then pushed them out Franklin and Wayne Newton, and the stantly changing. The award of casi- their back doors and into the some- Rama First Nation announced plans nos to Windsor and Montreal was times waiting arms of local mer- to build an upscale hotel and a 3,000- simply the sprouting of seeds already chants. 4,000 seat indoor showroom adjacent sown by the Crystal Casino in Win- All was great until the realization to the casino. nipeg and charity casinos in Alberta set in that the public was not neces- and British Columbia. Winnipeg's Crystal Casino, which at sarily conforming to the script and one point was not even allowed to As our industry grew, roving charity that markets were not as secure as display an outdoor sign, is closing casinos became permanent charity thought. Many markets were not with Club Regent and McPhillips casinos. Alberta casinos were given being penetrated to the degree that Street Station in the midst of a $50 25 slots, then 50, 75, and so on until the bean counters had expected million expansion. An expansion we are at a point where there are now while high end players shied away which includes table games, grand 2,030 slots in 16 of that province's 17 when offered a comp at a mid- staircases, a forest of 35 foot palm casinos with progressives linking slots market hotel down the road. And trees, what has to be one of the largest across the province. while patrons frequently came in indoor salt water aquarium in British Columbia's privately run char- couples, there was sometimes little Canada, and rotating stages capable ity casinos have become government to interest the second person. of handling high-profile performers operated commercial casinos (figure What were deficit minded politi- and large back up groups. Watch also that one out) while that province's cians to do when told that their for a possible announcement related mountain valleys will soon echo to the model was not returning as much as to the construction of a hotel adjacent sounds of destination casinos with it could? They turned to the tried to Club Regent. convention facilities, health spas, din- and proven Las Vegas-model they Loto-Quebec has taken a 50% inter- ing, bingo and, oh yes - up to 300 slots had previously spumed. est in a group which purchased the and 30 table games each. With some of the posturing now set Manoir Richelieu, adjacent to Subsequent to Windsor, Ontario got aside, our casinos are increasingly Casino de Charlevoix The group will renovate and expand the hotel, Our new address: 1690 Truscott Drive, Mississauga ON L5J 126 add convention space, and double the Telephone and Fax numbers are unchanged size of the casino (see article on page -Page 2 Canadian GAMING News - 8). Also watch for Loto-Qudbec to announce, sometime this year, a $200 Casino Updates million plan to build a 500-room five- -- star hotel, golf course and a 1,200-seat Casino City Project Description entertainment complex adjacent to (ova Scotia Casino de Hull. Sheraton Casino Halifax Halifax $105 million casino to replace interim In Alberta, ABS is enlarging it's casino. Project on hold. To open Casino Edmonton to include addi- September 15, 1999 tional slots, tables, restaurants and , entertainment venue. The same ap- 2uCbec plies to the Golden Chance Casino, Casino de Charlevoix Point au Pic $140 million project includes doubling which is moving to a new facility size of casino, renovation of Manoir adjacent to a to-be-built 98-room hotel Richelieu. Completion June, 1999 and to the Gold Dust Casino which Casino de Hull Hull Anticipation of $200 million hotel, we hear will soon announce plans to expand its complex. htario We wrote last month of British Casino Rama Orillia $120 million hotel / conference / Columbia's Lake City Casinos hav- entertainment complex ing relocated its three Okanagan Val- Casino Niagara Niagara Falls +$SO0 million casino retail hotel ley casinos to resort hotels and of its complex / off-site attractions plans to build a fourth destination casino in the Penticton Lakeside Re- Charity Casinos Sault Ste Interim casino to open in Sault Ste sort and Convention Centre in Pentic- Marie, Point Marie. No decisions yet on size for Edward, any of the four facilities. ton. As well there are the four desti- Brantford, nation casinos to be built at Cran- Thunder Bay brook, Wells, Campbell River and Horse racing track slots the second casino for Penticton; the 18 locations I Windsor Raceway opens soon Riverboat casino out of Westminster, Manitoba and the casino aboard the Pacific Au- Club Regent 1 McPhillips Winnipeg Casinos doubling in size, introduction rora out of Prince Rupert. of table games, upscale dining facilities, And then of course we have the new, show stages. Opening springl99. Cost $50 million. $105 million Sheraton Casino Hali- fax (should construction resume); Uberta Falls Management's (Hyatt) new, Casino Edmonton Edmonton Gaming floor expansion, dining facili- +$500 million Niagara Falls casino ties, show venue complex and off-site attractions (see Gold Dust Casino St. Albert our Feature Interview); four addi- 1 Anticipated expansion Golden Chance Casino / tional Ontario casinos at Thunder Grande Prairie Will build new casino hotel complex Bay, Sault Ste Marie, Point Edward 3ritish Columbia (Sarnia) and Brantford; and finally, Royal Diamond Casino Vancouver Relocating to permanent facility the placing of slots at approximately Destination casinos Cranbrook $32 million complex includes casino, 18 of Ontario's horse racing tracks. 124-room hotel, conference centre, golf We wrote in our August issue of the course likelihood of the just completed Wells 1 $2.2 million casino in existing hotel Casino Windsor expanding west-ward Casino aboard Pacific Aurora across the street on to what is known Prince Rupert as the old market. A little more flesh Campbell $29 million complex includes 130-room River hotel, conference centre, entertainment was placed on the bones of this idea venue, 300-seat restaurant/lounge recently when Ontario Casino Corp CEO, Ron Barbaro talked about the Penticton $27 million Sodak Gaming project in- building of a second hotel tower and First Nation cludes 144-room hotel, golf course, banquet rooms additional gaming space on this site as being an important item on his per- City of $12 million Lake City Casinos project sonal agenda. Penticton includes casino, 55-room expansion to luxury hotel, roof-top restaurant / And someone really thought every- lounge thing would be out and over by the $1 0 million Star of Fortune Riverboat end of 1994! New Westminster Casino -Canadian GAMING News Page 3-

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4LW YS P 3 ...... UNITED KINGDOM AUSTRALIA LAS VEGAS MIAMI SOUTH AFRICA SPAIN TEL: 44-171-394-4000 TEL: 61 -2-9319-1633 TEL: 1-702-798-0500 TEL: 1-305-556-9413 TEL: 27-11-444-4745 TEL: 34-95-286-3957 FAX: 44-171-231-7414 FAX: 61-2-9699-9638 FAX: 1-702-798-0545 FAX: 1-305-556-9427 FAX: 27-11-444-4786 FAX: 34-95-282-8643 -Page 4 Canadian GAMING News - Hyatt Regency Buffalo Hotel. He also developed and owned Darien Lake Theme Park and the Buffalo Perform- ing Arts Centre. He will provide ad- vice and input on our amphitheatre plans. Sack: You say Snyder 'owned' What was announced Darien Lake. This implies that he no September 14,1998 Lye on a small family farm in Ne- longer has an interest and therefore Casino Complex braska. Subsequent to completing there would be no conflicting loyalties an engineering degree at the Uni- to his being involved with your am- 100,000 sq. ji casino overlooks versity of Nebraska, a Masters de- phitheatre? the falls (3,000 slots, 120 table gree in City Planning at M.I. T. and Schulze: That is correct, Mr. Snyder games) a Law degree at Harvard, he prac- no longer has an ownership interest in 350-room Hyatt hotel includes ticed real estate law in Omaha Darien Lake. whereupon he joined Hyatt Corpo- ballrooms, variety of restau- ration in 1979. In addition to sew- rants, lounges as well as health Sack: And what about Falls Enter- ing as Vice Chairman of Hyatt De- tainment Corporation? What is its in- spa velopment Corporation and Presi- volvement? 72,000 sq. ji convention facility dent, C.E.O. of Falls Management Company, he is also President of Schulze: Falls Entertainment, owned to attract small and medium- by Richard Boxer and Andrzej Kepin- size conventions Dorado Beach Hotel Corporation and President of Hyatt 's Grand Vic- ski, introduced some of the partners 1,200-seatperforming arts ten- toria Casino and Resort. that came together in order to bid for ter will host live theatre and the CasinoIGateway project. Falls special events Sack: On September 14, Falls Entertainment has an option to pur- Management Company and the On- chase up to 10% of Falls Management 300,000 sq. retail space of- ji tario Casino Corporation an- from the other partners. Richard fers 24-hour specialty shop- nounced an agreement had been Boxer's broad business background ping; also includes 50,000 sq. reached whereby Falls Management will be helpful and Andrezj Kepinski ft family entertainment centre will design, build, finance and oper- has experience promoting events. featuring simulation games ate a large casino complex as well Sack: What is the timeframe for Falls eight-theatre movie complex as Off-Site attractions at Niagara Falls. Hyatt Development Corp, of Entertainment to exercise its option? highly themed, diverse restau- which you are Vice Chair, has four Schulze: No date has been set. The rants other partners in its Niagara Falls option is based on time periods and wine cellars and tasting rooms project - Shiplake Gaming Corpora- development milestones. will give visitors taste of Nia- tion; Urban Shopping Centres, Sack: At the announcement we were gara vineyards Olympic V Associates L.P. and Falls Entertainment Corporation. In told that the overall project would cost tourist information centre using a general way, please tell us what $500 million. This seems low given latest technology to offer mix each brings to the project and who that Windsor's new casino cost this of information services will do what. much and it does not have as many component parts your project. Off-Site Attractions Schulze: Hyatt will be the operator of the interim casino and the perma- Schulze: This project has been de- River Country addition to city's nent casino. We will also operate signed specifically for the Niagara already-existing Marineland the hotel. Shiplake will manage the Falls community. Remember that our will merge major theme park parking as well as play a role in the goal for the next six months is to work concepts such as extended wa- overall development of the project. closely with the city and the people of terways, 650-metre white sand Urban Shopping Centres, the third the community to redefine the project. beach, train and raft rides, live largest retail property manager in Until that process is complete, we animals the United States, will provide con- won't be able to define the exact cost of the project. 12,000-seat indoor / outdoor sulting advice and be responsible concert facility offering for leasing the retail and amusement venues. Sack: Is it not a bit late to ask the world's top entertainers local governments what they think Olympic V Associates is owned by given that Falls Management and the people-mover which will link a group of western New York State major City of Niagara Falls at- Ontario Casino Corporation have al- businessmen. Paul Snyder, a mem- ready agreed upon the project and tractions ber of the group built and owns the signed a contract? - Canadian GAMING News Page 5 - Schulze: Absolutely not. We'll be working closely with the city and the I Hvatt's Master Plan For Niagara Falls 1 community to redefine our project and to ensure that it meets the needs of the community and fulfills our key goal, which is to attract more visitors to the area, to encourage them to stay longer and keep them coming back.

Sack: What are your plans for the , people mover and will Falls Manage- ment have an equity interest in it? Schulze: When we prepared our pro- posal we did not have the benefit of local planning that had been done. Local governments have already spent considerable time and money looking at their options for this including, we understand, a mono-rail. We have committed to contribute $1 5 million to help them follow through on their plans. Falls Management Company's master plan for Niagara Falls. Permanent casino Sack: Returning to the cost of your complex with 300,000 sq. ft of retaiventertainment space, 100,000 sq. ft of gaming, project, who will provide the money? 350-room hotel, 70,000 sq. ft conference centre is immediately above Horseshoe Schulze: The partners will provide Falls and south of interim casino (far right). River Country, adjacent to Marineland the equity and the Bank of Nova Sco- is approximately 1 mile south of casino complex. 12,000-seat Amphitheatre is just tia will provide debt financing. east of River Country. People Mover (dotted line) links all four sites. Sack: Who is running Casino Nia- person's role be vis-a-vis your own Sack: Windsor Casino Ltd was also gara now, Hyatt or Navegante? given that you are President of Falls originally going to finance Casino Management? Windsor though this changed when Schulze: We take over the opera- the OCC decided it could borrow the tion of the interim casino November Schulze: My general overall responsi- money more cheaply as an agent of 1, 1998. bilities for Casino Niagara and the the Government of Ontario. It there- Gateway Project will continue. Sack: What is the process for the fore ended up providing 75% of the While many members of Hyatt and the turnover? money used to build that casino. Why FMC team will be devoting a lot of is this same course not being followed Schulze: We have established a time to making the overall project a for Niagara? transition group to oversee the pro- success, we will be relying upon our cess and familiarize ourselves with general manager and Larry Lewin, Schulze: As stated earlier, financing the operation of the casino. who heads all our casino gaming oper- for the project will be provided by the ations, for the daily operation of the consortium and the. Bank of Nova Sack: Navegante left Casino Nia- casino. Scotia. nara's- vice president-level posi- tions vacant io give the fullltime Sack: Who is your architect and gen- Sack: The OCC's decision that poten- operator flexibility to select and in- eral contractor? tial losses from off-site projects could sert its own senior management not be deducted from casino profits Schulze: Our general contractor is team. What are your plans for these PCL Constructors and our architects caused several operators to walk away positions and what of positions such from Niagara. Will Falls Manage- are Zeidler Roberts Partnership along as Executive Director and Director? with Bregman + Hamann Architects. ment be allowed to deduct losses from Will the incumbents of these posi- its off-site attractions from profits tions be retained? generated by the casino? Sack: Do you have a completion date for the entire project? Will it include Schulze: No it will not. Schulze: There will be few, if any a phased construction schedule - changes right away beyond the ap- building some elements sooner than Sack: What is the profit split between pointment of a general manager. others? Falls Management and the OCC? We want to get to know the people who are there first. Schulze: As I said earlier, we will be Schulze: As you know the OCC has a consulting with the city and the com- confidentiality policy with respect to munity to finalize a master plan, the terms of the operator's fee. Sack: You say you will appoint a general manager. What will this which will be subject to municipal -Page 6 Canadian GAMING News - and provincial planning approvals. petitive and which fulfills the goal already established theme park. It Once these are obtained, we'll be able of attracting more visitors to the will have several kilometers of water- to set the construction schedule. And, area, encouraging them to stay ways and be home to animals indige- yes, it is feasible that certain elements longer and keeps them coming back. nous to the region. It will also have a \ of the project will be able to proceed train ride, long white sand beach and on a staged basis, although it's too Sack: Does your contract include a other attractions. Falls Management I early for specifics at this time. provision requiring Falls Manage- will not have an equity interest in ment to assist in the redevelopment River Country. Instead, we will ad- Sack: There has been a lot of specula- of the interim casino site if a deci- vance money to Marineland to help it tion as to how much of your original sion is made to close this casino? follow through on expansion plans market you still have left given the which it has. government's decision to place slots Schulze: No. at Fort Erie and Woodbine racetracks Sack: There is a feeling that if the Sack: You will have a permanent and to build a new casino at Brant- interim casino closes, your perma- circus act at the casino. Are you ford, and given continuing talk of nent casino will be enlarged, to per- thinking here of something similar to casinos in nearby New York State. haps 120,000 sq. ft, to avoid the the Cirque du Soleil theatre at Las For example, they ask whether you peak-season congestion experi- Vegas' Treasure Island casino? still have sufficient market to keep the enced at the interim casino. Your 100,000 sq. ft interim casino open as Schulze: We have included in our well as open another 100,000 sq. ft thoughts? plan a permanent circus act. We be- casino in the permanent complex? Schulze: It is too early to speculate lieve that, because of our comprehen- What are your thoughts on this? on these kinds of issues. Suffice it sive tourism plan designed to attract Schulze: The RFP requested propos- to say that our intent is to develop a more visitors to the area and to als based on the interim casino closing project which will meet the tremen- lengthen visitor stay, a quality circus and our proposal was therefore based dous demand here in the Niagara act such as Cirque du Soleil would be upon this. It's too early for me to say Region. attracted to the region. what our recommendations will be Sack: Is not a 350-room hotel too Sack: What kinds of shops and facili- regarding the interim casino. small for a complex of this size? ties are you going to place in your With regard to your comments about Schulze: 350 rooms is the minimum retail space? our market and slots at the horse rac- needed to accommodate our most ing tracks, the Brantford casino, and Schulze: Included in the 300,000 sq. frequent players. We are fortune in casinos in New York State, we still ft of retail is 50,000 sq. ft of virtual don't know how many slots the tracks that there are other hotels nearby reality adventures, an eight screen will have, how large the Brantford and we intend to work with them to multiplex cinema and various retail casino will be, or if and when New ensure all guests are accommo- and food and beverage outlets de- York will have casinos or how large dated. signed to complement, but not com- pete with local businesses. they will be. We are obviously watch- Sack: What would you say to those ing developments closely and will who say that your SimEx entertain- Sack: How will you operate and mar- continue to do so, though our plan is ment complex, movie theatre, am- ket your 12,000-seat amphitheatre? to build a facility at Niagara which phitheatre and River Country will Schulze: We intend to contract this will be attractive, successful, and encourage young people to gamble? withstand competition. out to Universal Concerts Canada, Schulze: Our project reflects a which operates Toronto's Molson Sack: Related to this, have you re- comprehensive, year-round tourism Amphitheatre and is the largest con- ceived any assurances from the OCC plan for the area designed to give cert promoter in Canada. about a large casino in Toronto? visitors, families and others more Schulze: We are not aware of any entertainment options and to en- Sack: Thank you and all the best! plans the OCC may have for Toronto. courage them to spend more time in the city. It's important to note that Final drafts of our interviews are reviewed by our guests Sack: Could these other initiatives River Country and the amphitheatre cause you to change or cancel some of are located some distance from the before publication. the elements of your project as an- casino complex while you are able Falls Management Partnership nounced? to enter SimEx without having to Schulze: We will be monitoring de- pass the casino area. I Hyatt Development 1 35% 1 velopments in the marketplace care- Sack: Tell us more about River fully in an effort to assess their poten- Country. tial impact on our project and to plan accordingly. But as I noted, we intend Schulze: River Country will be lo- to build a project which will be com- cated at Marineland, which is an - Canadian GAMING News Page 7 - modified machines and control sites. Voters in Alberta and Manitoba We understand that the payout per- centage test has been completed and ?I will decide the fate of VLTs soon that speed of plav tests should be Voters in communities representing VLTs. The government has not said complkted by kariy October. The approximately 70% of the Alberta what it would do should this hap- commission's findings will be given electorate, including those resident in pen. to gaming minister Pat Nelson who Calgary and Edmonton, will be asked, will then make her recommendations While there have been ongoing calls to Cabinet. We do not expect any October 19, if they want to remove from municipalities across Canada VLTs from their communities. announcement before the October 19 for a share of gaming profits, be vote. While an Angus Reid public opinion these from VLTs, commercial or poll taken at the end of August charity casinos, Manitoba is the Earnings showed that 47% of the electorate in only province which shares gaming the City of Edmonton believed that profits. In that province 10% of Released VLTs should stay in that province's VLT gross goes to municipalities bars and restaurants, 41% thought which may explain why, even The Manitoba Lotteries Corpora- they should be removed. No poll though municipalities in this tion had gross revenue of $3 1 1.4 and information is available for Calgary province have been given the same a net profit of $225.2 million for the though, as the anti-VLT side there opportunity to vote on VLTs as year ending March 3 1, 1998. Net appears better organized, it may be an have those in Alberta, only one - the revenue was up $9.2 million, or 4.3% even more difficult fight. This is small community of Winkler, has from the previous year. particularly relevant considering that decided to do this. Municipal offi- MLC says that the increase was due the turnout in municipal election cials can swing debate on these is- primarily to casino revenues having campaigns averages about 30% and sues and are more likely to support returned to normal levels following a that 'single issue' electors are more our industry when they have some- strike which closed its properties for likely than others to vote. thing - like VLT profits, at stake. most of the summer of 1996. Unlike in Ontario during the votes that went against charity casinos last VLT November, ~lberta'srestaurant, bar and charity casino owners are using Tests newspaper interviews and service Following Leg- club speeches to present the other islative approval S&E!! side of the gaming story. FORCANADA! of a resLlution One thing that comes through clearly brought forward is that even opponents of VLTs seem by Judy Gordon to believe that profits from VLTs requiring that the should be earmarked for specific ini- payout percent- tiatives and not be mixed in with age for VLTs be general government revenues. While increased and that this is an optics issue in that assigning the speed of play VLT profits to one specific area sim- be slowed down, ply frees an equivalent amount of the Alberta revenue for assignment to other areas Gaming & where VLT profits might have gone, Liquor Commis- the Alberta gaming industry appears sion, on May 25, to support this as a way of highlight- 1998 announced ing the contribution gaming profits that it would con- make to government programmes. duct field tests to Ontario's plan to devote its profits determine the im- from charity casinos to hospitals died pact which these along with that programme. changes would The votes will not impact electronic have upon play gaming in Alberta's casinos which and levels of Di$tributor.

which operates three charity casinos Canadian Gaming in the British Columbia interior and Big Casino de has just be given the right to build Stocks and operate a destination casino in Charlevoix the British Columbia City of Pentic- Name ton, to our list. Expansion On September 2 Loto-QuCbec re- Calgary-based Applied Gaming leased final details of plans which it Ypplied Gaming Solutions (AGS) announced, (50%), Canadian Pacific Hotels lolutions (AGC) 5 September 14, that the federal gov- (25%) and the Fonds de solidaritC ernment's Export Development des travailleurs du Quebec (25%) kin0 Software Corporation (EDC) has approved CFA) 3 have for a $140 million refurbishing insurance related to its Viet Nam and expansion of Casino de Xon Entertainment lottery contract to provide a real Charlevoix and the Manoir Riche- DIO) I time lottery similar to 6/49. lieu, a 373-room hotel adjacent to the AGS announced last spring that it casino. 3reat Cdn Gaming :GCD) 3 had entered into an exclusive 7-year The project will include three phases. agreement with Viet Nam to supply all equipment, software, training During phase one, $85 million will Int'l Hospitality Inc be spent to upgrade the Manoir :IWIN.U) 2 and consulting services necessary to install, implement and train local Richelieu to the four-star status of its Int'l Thunderbird lottery staff to operate a modern sister hotel, the Chdteau Frontenac in Quebec City. The Frontenac is [INB) I online lottery system with progres- one of Quebec's premier hotels. The Lake City Casinos sive capabilities. The EDC insur- Manoir will also be expanded to in- (LCG) 3 ance will cover AGS against com- clude a conference centre. mercial losses brought by buyer in- Network Gaming solvency, non-payment or repudia- Phase two includes giving the COT (NGQ) 3 tion of goods, and political causes Manoir's already spectacular golf such as war and the cancellation of course a facelift. The course, which PlayStar Corp import or export permits. was founded in 1876 and follows (PSCK) 4 along 150 foot bluffs overlooking the Starnet Communications Interna- St. Lawrence River, was named one Starnet tional announced a gross revenue of of Canada's 10 best golf courses in (SNMM) 4 $1.5 million for its second quarter 1997. Renovations here will focus Stuart Entertainmenl ended July 3 1. This is a 116% on the club house. (STUA) 4 increase from $709,337 for the Phase three includes renovations to year-earlier quarter. Net profit for and expansion of the casino. Loto- Trim Equities the quarter was $1 02,5 16. Quebec will increase Casino de UEQ) 3 International Thunderbird Gam- Charlevoix to 700 from 3 12 slots and Venture Pacific Dev ing announced, September 8, the expand its table games to 2 1 from 15. (VPV) 3 opening of its second Panamanian By comparison, Casino Regina has casino - the Fiesta Casino, located 620 slots and 41 table games. A within the El Panama Hotel in 350-car multi-story parking garage will also be built. The entire project I) TSE 2) CDN Unlisted 3) VSE Panama City. The casino has 148 slots and 16 gaming tables. Inter- is to be completed by June 24, 1999. national Thunderbird opened its Coupe Casino de Charlevoix This month we remove Advance first Panama casino on August 25, Gaming Technology from the list of 1998. The company expects to On August 26 - 28, 114 professional Canadian gaming companies we fol- open its two remaining Panama golfers from across Quebec com- low. Advance Gaming has filed for casinos shortly. On September 30 peted for $50,000 in prize money offered by Casino de Charlevoix. bankruptcy protection in Wyoming the company also announced that its and the shares of this Vancouver- The winning team received $1 5,000. Guatemala casino, with 254 slots The day prior to this the casino based manufacturer of hand-held had won its legal challenges and is bingo terminals no longer trade on the hosted a best-ball invitational tourna- operating profitably. Its Aruba ment for premium player and others NASDAQ over-the-counter where casino - Casino Merengue has been they are listed. with each foursome including one of losing US$159,000 per month and the professionals. We also add Lake City Casinos, will be disposed of. - Canadian GAMING News Page 9 - Federal Court of Canada to obtain British Columbia Sheraton clarification as to whether the CPMA could prevent the OJC from accepting casino profiles Casino Halifax pari-mutuel bets via the Internet. Few have a precise handle on the The construction halt continues at The OJC now operates its Horse number of slots and table games oper- Sheraton Casino Halifax and frus- Player Interactive using a combina- ated by casinos in British Columbia. tration is mounting within the Pre- tion of the Internet and the telephone. The chart below provides these totals mier's Office as well as within The race toteboard, live video and for each of the province's 17 casinos casino circles. Premier Russell audio is carried on the Internet. How- as well as for the seven recently ap- MacLellan, for example, felt com- ever, Section 204 of the Criminal proved destination casinos. pelled to remind Caesar's World Code restricts the placing of bets to We expect that the government will that they were running more than a the telephone. The OJC's request of also announce two additional destina- Kool Aid stand in Nova Scotia the CPMA was for permission to also tion casinos by the end of October. while others feel frustrated by what use the Internet to place bets. This will complete the present phase they perceive as Caesar's World The Federal Court's decision was a of its casino expansion programme. Inc's failure to come clean as to why construction has really been disappointment not only in that it came down against the OJC but in Casino Slots Tables stopped. that it side-stepped the main issue Billy Barker 134 7 The common perception is that Cae- upon which it had been asked to rule. sar's parent, Starwood Hotels & Hollywood 217 9 Resorts Worldwide Inc, has sus- As a vehicle to bring its case before the court and to obtain its interpreta- Grand 3 0 pended construction to give itself a chance to review whether it wants tion of Section 204, the OJC had filed Holiday Inn 30 to be in the gaming business and, in a claim stating that the Executive Di- rector of the CPMA had not acted Kamloops 1 275 1 16 particular, whether it wants to oper- ate casinos in Nova Scotia. We properly in denying the OJC the right Kelowna 1 155 1 12 have the impression that people find to use the Internet to place bets. The expectation was that, in weighing the Mandarin 1 this a more credible explanation and, if true, would have preferred Executive Director's actions, the that Caesar's had said this in the court would first decide on the first place. broader issue of whether the CPMA had the right to act in this area at all. Newton While Caesar's may not find the $10,00O/day penalty for failing to The court, however, restricted its de- Red Lion open the permanent casino by cision to saying that the Executive September 15, 1999 onerous, given Director had acted properly within Renaissance 24 the controversy surrounding the the confines of her responsibilities. Richmond 3 0 government's decision to wave the The OJC is now talking with the On- penalty when ITT Corp missed the Royal Diamond I 1 30 tario Horse Racing Industry Asso- first deadline, no one should expect ciation (OHRIA) as well as Race the second penalty to be waved. Tracks Canada and has received Vernon 89 8 The appointment of Peter Peachey their endorsement for its plan to re- as Senior Vice President, General quest that the federal Minister of Jus- Sub-total 1,339 327 Manager for both Casino Halifax tice amend the Criminal Code to per- Plus Destination I I and Casino Sydney has confirmed mit the Internet to be used to place for some that construction will re- pari-mutuel bets. While the CPMA Rockies 300 30 sume soon though others say that, if restricts horse racing tracks offering Jack O'Clubs 125 7 need be, Caesar's could easily reas- pari-mutuel betting to specific geo- sign Peachey to other responsibili- graphic territories - the OJC, for ex- Pacific Aurora ties. ample, is restricted to the Greater Toronto Area, the OJC has indicated Ontario Jockey that, when it comes to accepting pari- Arrowleaf 300 26 mutuel Internet bets from outside its Lake City 200 20 Club area, it will respect this arrangement. Time did not permit the OJC to re- Star of Fortune 300 30 We wrote last fall of the Ontario Jockey Club (OJC) and the Cana- quest an Internet amendment as part Sub-total 1,360 147 dian Pari-Mutuel Agency of the set of amendments, including one which will permit dice games, TOTAL (CPMA) having gone before the 1,699 474 which the Minister of Justice pro- -Page 10 Canadian GAMING News -

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posed to the Criminal Code at the end ing into gaming decisions, Barbaro door on Barbaro's plan though not of June. It hopes to make its amend- may be flying a trial balloon to see necessarily so. The link to the casino ment a part of the set of omnibus how the City of Windsor and others will give him leverage with the hotel amendments to be introduced in the react to the idea. proponents and given that both he and spring of 1999. The land under consideration is they are talking hotels, the already 60% owned by the City of Windsor completed RFP process could be- Casino Windsor and 40% by the Ontario Realty Cor- come a vehicle for fast-tracking Bar- poration (ORC), a government baro's objective. Expansion? agency. Last year the city and the Hyatt's ambitious plans for Niagara Ron Barbaro, Chairman & CEO of ORC issued a joint Request For Falls have caught the City of Wind- the Ontario Casino Corporation has Proposals for someone to develop sor's attention and this too may work stirred things up by indicating his their 'West of the Casino Lands'. A in Barbaro's favour. personal support for the construction Windsor/Detroit team won with a of a second hotel tower and addi- proposal for a hotel. A condition of Hi-Tech I IGT tional gaming space on land at the their proposal was that they be al- Ron Robinson, head of IGT's Cana- western edge of Casino Windsor. lowed to build a direct link to the dian operations and Owen MacNeil, While Barbaro is quick to point out casino. of Hi-Tech Gaming have signed an that his comment does not represent The OCC resisted, believing the agreement whereby Hi-Tech will pro- government policy, gaming minister project too dependent upon it for its vide parts and support services for Chris Hodgson has previously given success and the 'West of the Casino IGT's casino and lottery customers signs that he is willing to consider Lands' project remains on hold. across Canada. As part of the ar- such action. Contrary to the govern- At first glance, the RFP would rangement, Moncton-based Hi-Tech ment's previous practice of blunder- therefore appear to have closed the will also assume responsibility for

! Commercial Casinos City Month Total Table Total Slot Gross $ Zhange Daily Change $Win/ tables change slots change million gross attend attend Player previouc previous month wevious previous month month month month Sheraton Casino Halifax Halifax 632 +I.O 23.79

Sheraton Casino Sydney 28.22

Casino de MontrCal Montreal 69.62

Casino de Charlevoix Pte au Pic 31.15

Casino de Hull Hull 53.55

Casino Windsor Windsor Mar 115.50

Casino Rama Orillia Mar 101.89

Casino Niagara Niagara Falls Mar -5 56.62

-- Crystal Casino Winnipeg n/a

Club Regent Winnipeg none da

McPhillips Street Stn Winnipeg none da

Saskatchewan Indian N. Battlefordl Jul 27.29 Gaming Authority Prince Albert1 Yorktod Carlyle Casino Regina Regina Jun 36.28

Notes: (1) Our estimate based on limited information available -Page 12 Canadian GMINGNews -

IGT's Winnipeg office and its staff of OLC's RFP for slots with the corpo- four. Hi-Tech, which already has of- ration entering detailed negotiations People On The fices in Moncton, Winnipeg and Mon- with an undisclosed number of these. treal will also open ofices in Missis- It has identified a preferred supplier Move sauga and British Columbia. for its management system with final In addition to IGT products, Hi-Tech announcements relating to both ini- also sells and services JCM bill val- tiatives expected by the end of Octo- idators and NRI coin handling equip- ber. ment. Ontario Ontario Horse Charity Casinos Racing Slots We hear that the City of Sault Ste Approximately two-thirds of the 18 Marie has identified the downtown Ontario horse racing tracks earmarked Woolco building as the site for its interim casino and it presently look- to receive slot machines filed business Michel Crete plans with the Ontario Lottery Cor- ing at parking issues. The Ontario poration by the August 28 deadline. Municipal Board, having heard ap- Michel Crete, President & CEO of While some of these tracks have re- peals in September against the City Loto-QuCbec has made key changes quested a set number of slots, we have of Brantford's decision to give zon- within the corporation. the impression that, in the absence of ing approval to locate a casino in the Claude Trudel, who was President knowing how many slots the OLC icomm building, will also hear ap- of Operations, 'Lotteries' Sector has plans to place at the tracks, most peals on October 5 as well as October been appointed President of the So- simply provided information as to 15-18. Talks continue with Thunder cie'te' des casinos du Que'bec replac- market size and their own capabilities. bay and Point Edward. ing Vincent Trudel who recently The tracks have still not been told accepted a position in Spain. what their responsibilities will be in Dice I Money Simon Brodeur replaces Claude terms of staff, equipment maintenance Trudel as President of Operations, and such things as marketing. With ~aundering 'Lotteries ' Sector where he worked the OLC in the process of installing On September 28, 1998, the Minister between 1984 and 1993. 7 12 slots from the Northern Belle at of Justice introduced, for Second Joanne Drapeau, formerly Manag- Windsor Raceway (October 19 is the Reading and debate in the House of ing Director of Casino de Montre'al, unconfirmed opening date), we can Commons, amendments to the Crimi- has been appointed President of the expect to hear more soon. nal Code which will permit dice Socidtd des loteries vide'o du Nine responses were received to the games in casinos. Following the Que'bec. A new Managing Director completion of debate, Bill C 5 1 will for Casino de Montre'al has not yet go to committee whereupon it will been named. return to the House for third and final reading. The same process will then Gilles Dufour, formerly Vice Presi- be repeated in the Senate with specu- dent, Development and Implementa- tion at the Socikte' des casinos du lation that the change could be de- Que'bec, has been appointed Presi- clared in early 1999. dent of Operations of Loto- The Department of Finance's money QuCbec's property subsidiary, laundering amendment will come Casiloc inc. into force October 16. It will not include Manitoba or QuCbec casinos Ontario Jockey Club as they are operated by provincial Hugh Mitchell, formerly General governments though neither the De- Manager with Western Fair Race- partment of Justice nor the Depart- track in London, Ontario, has joined ment of Finance could tell us if the the OJC as Vice President Standard- exclusion also applied to government bred Racing. He will be responsible casinos where the operation is con- tracted out or to British Columbia for overall Standardbred operations casinos. More next month. at both Woodbine and Mohawk.

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