8'3/V-2c^ Canadian Gaming News,.

Issue 62 July, 1999 Second generation casinos opening across Canada On June 24, 1999 and five years to the themed casino. Club Regent is an day that the Societe des casinos du elaborate tropical setting complete Quebec first opened its small casino with thatch covered bars, a forest of (289 slots, 13 tables) at Point au Pic, it 30' palm trees, a 100,000 litre sea has opened what qualifies as Canada's aquarium, Mayan ruins and a four premier gaming property. Premier if a story high waterfall cascading past luxury hotel complete with copper visitors as they descend through cat- Ivan Sack roofs and rooms up to $450 / night, acombed caves to enter the casino's with signed agreements, are taking haute cuisine, what is recognized as lower level. casino gaming there a giant step for­ one of the ten best golf courses in ward - Star with riverboat casino to Canada, an elaborate health spa, a McPhillips Street Station Casino is themed Olde World colonial with be part of a larger hotel and confer­ finely appointed gaming floor and a ence retail complex, and Lake City in view of the St. Lawrence which, when spacious foyer, white gaming floor columns; broad Scarlet O'Hara a partnership with an established re­ taken from the bluff upon which the sort and conference centre. complex is located, extends for 10 staircases, ornately painted ceilings miles, is to count for anything. The and the first amusement ride to be We could add Niagara Falls' new cost? $140 million or the total cost of found in any Canadian casino - The casino complex and the soon-to-be- hosting the PanAm Games in Win­ Millennium Express, a 3-D journey announced (now that an agreement nipeg this summer. though Manitoba's past and on into has been reached with the National its future. One sits in a railway car Capital Commission for a golf And in Winnipeg later this month, the and travels back in time to the ice course) expansion to Casino de Hull Manitoba Lotteries Corporation age and then forward to the forma­ to our list of new generation proper­ will close its Crystal Casino and open tion of landscape, the beginnings of ties. expanded gaming floors at McPhillips First Nations people, the Selkirk Street Station and Club Regent. To Settlers, the building of modern day While political saw-offs in say expanded gaming is an understate­ Winnipeg and on into the future Saskatchewan, for example, where ment in that with the opening of these until, suddenly, the car's sides and the four native casinos want to ex­ properties, Winnipeg will have two of roof are lifted away and its riders pand their slot operations but are re­ the most exciting casinos in the coun­ are floating though space. Total stricted to the same number of slots as try. Club Regent Casino will easily cost for the two casino expansions Casino Regina which does not want lay claim to the title of Canada's most is $66 with MLC saying everything to expand, still distort market dynam­ is within budget. ics, this is becoming more the excep­ tion than the rule. Casino Edmonton, still technically No August Issue a charity casino, wisks patrons to Stand-alone casinos - the all gain, reduced pain casino model preferred After writing 62 monthly issues of and from its gaming floor in a stretch limousine while White Bear by governments across the country Canadian Gaming News and only short years ago, are rapidly be­ organizing three Canadian Gaming Casino and Lodge, in southern Saskatchewan, offers its patrons coming footnotes to the past. In their Summit & Exhibitions, our editor, overnight accommodation consid­ place we find 'casino complexes' and Ivan Sack is taking a vacation. ered the best in that region and staff governments more at ease with gam­ There will therefore be no August who almost gush in an effort to be ing - or at least more comfortable taking the routine knocks associated issue of CGN though, as usual, you helpful (talk with them as we did). with gaming - realizing that they have will receive our September issue at In British Columbia, Star of For­ even more to gain by playing to mar­ the beginning of that month. Have tune and Lake City Casinos, the ket forces than by challenging them. a safe and enjoyable summer! two destination casino operators Las Vegas here we come! Page 2 Canadian GAMING News - are taken to ensure the integrity of Casino approved, this industry but we do question the $600,000 Slot merits of Glasgow not being al­ Glasgow on hold lowed to sell his shares. To the best Progressive On June 24, 1999 Lake City Gaming of our knowledge he is a person of The Saskatchewan Indian Gaming Corp and the British Columbia Lot­ demonstrated integrity (or he would Authority's 'Smoke Signals' slot tery Corp signed agreements not already be licensed) and BCLC, progressive jackpot has reached whereby Lake City will own and oper­ by requiring that everyone purchas­ $600,000. To win, you must play two ate a casino with 16,500 sq ft of gam­ ing 10% or more of his shares be $1 coins. A quick check of our major ing (240 slots, 20 tables) on the sec­ approved by it, could have also en­ casinos indicates that while this is an ond floor of the Penticton Lakeside sured that he was replaced, as astonishing sum for a Canadian slot Resort & Conference Centre in the owner, by reputable new owners. progressive when compared to largest City of Penticton. As part of Lake So why then restrict what is a nor­ City's arrangement with the resort, the mal market dynamic - simply be­ jackpots of $240,000 for Casino resort and Lake City will spend $15.5 cause Glasgow was going to be Rama; $100,000 Casino Windsor and million to renovate what will be the granted a gaming licence which $160,000 at Casino Niagara, it is not resort's gaming area as well as build a would have made his interest in the the largest. new health spa and indoor pool, ex­ company worth more? This prize goes to Casino de Mon­ pand and modernize the conference treal which, as we write, has a $1.3 centre, and build a show lounge, as Cable companies, radio and TV sta­ million slot progressive jackpot well as boardwalk and docking facili­ tions, gas pipeline companies, air­ ties for the resort which sits on the lines and many other sectors of our which hits on two $5 wagers. As southern edge of Lake Okanagan. economy have the value of their well, Jeu de puissance (power play), While some construction has already assets determined by regulatory de­ a hockey themed progressive which begun, the resort is at 100% occu­ cisions yet no one questions the links Quebec's three casinos and is pancy during the summer which right of their shareholders to buy or won on three $0.25 coins, now stands means that most of the work will be­ sell shares so long as they conform at slightly more than $700,000. This gin this fall with the casino and re­ with regulatory and competition re­ jackpot, once won, will again begin at lated complex expected to open in quirements. We do not know Mr. $500,000. March, 2000. Glasgow though, on a point of prin­ ciple, we think As part of the negotiations with BCLC should re­ BCLC, Lake city has agreed to amend view its decision its corporate articles within four with regard to his Design 21 FX Lighting Ltd. months of the agreement to require holdings. Services: that no shareholder may own in excess Import - Manufacture - Sales of 10% of the issued shares of the Consulting - Installation company without the prior consent of Bingo BCLC. Furthermore, no shareholder Country Featuring: who owns more than 10% of the com­ Star Panels - Brass Striplites - Acrylic Slot Signs pany will be allowed to dispose of any For Sale Tubelites - Fiber Optics - Ropelights - Marquee shares or acquire more shares without the prior consent of BCLC. Rumour has Len Stuart, the (Any Custom Design Welcome) In a related development, Fred Glas­ founder and, un­ gow, the founder and majority owner til he sold out 'Las Vegas' Style lighting systems of Lake City has been denied the right four years ago, to sell his shares in that company by Our Booth Seen At: majority owner 'Canadian Gaming Summit & Exhibition' Windsor the fact that BCLC refused to approve of Stuart Enter­ the sale prior to the June 27, 1999 tainment, North See Our Booth At: expiration of Glasgow's agreement America's with Sprott Securities, the investment World Gaming Congress largest bingo Las Vegas Sept 14/99 Booth 2757 house syndicating Glasgow's shares. supplier, pur­ We understand the BCLC did not chasing Bingo 12324-104 Ave. Edmonton, AB T5N OV3 want Lake City to be able to trade on Country's 44 the fact that it was being granted a Ph (780) 421-1940 Fax (780) 421-0148 bingo halls. licence to build a fourth casino in Bingo Country is Winner of the 19921.E.S. Award For Casino Lighting Penticton. North America's We see no difficulty with the 10% largest bingo hall SERVING THE MARKET requirement as all benefit when steps owner/operator. WITH 10 YEARS EXPERIENCE Canadian GAMING News Page 3

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ALWAYS AHEAD

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 which had a vision and took the risk Feature Interview which is generating a fund to help all Ontario First Nations in years to Bobby Yee President, C.E.O. come. Casino Windsor Sack: You joined Casino Windsor in You only have to look at where Bobby rants. During April, 1998 - just before a strike, four Yee was born and at his hobbies to this time I also Wmm months before its new property learn why he is considered one of trained as a dealer but could not go opened and at a time when there Canada's best and most rounded on the gaming floor as I was not 21 seemed to be constant change on the casino operators. He was born and - the legal age for gaming in executive floor. When you think raised in Reno, Nevada where he was Nevada. On the day I turned 21,1 back, what were your first goals upon a pre-physical therapy major at the was not only allowed to go on the joining Casino Windsor? University of Nevada at Reno. Re­ floor but was allowed to deal craps Yee: My first goal was to provide spected for his broad grasp of a wide - which made me the youngest stability, direction and a philosophy of range of casino gaming issues he is, dealer there. I've enjoyed every teamwork. We have a truly talented not surprisingly, eclectic when it minute of my career as well as and capable workforce who just comes to 'hobbies' - he has no spe­ watching the industry mushroom, needed a rudder to keep them on cific hobby preferring instead to oc­ and having it take me along for the course. cupy his off-hours with a wide-range ride of a lifetime. I am also ex­ of different interests and activities. tremely fortunate to have worked Sack: To what extent do you feel you for some wonderful companies that As July 29 marks the first anniversary have achieved these goals and what allowed me the opportunity to work of the opening of the new Casino are your priorities now? in operations, development, market­ Windsor, we thought it appropriate ing and, by so rounding out my Yee: I feel that the goals I've men­ that we talk with Mr. Yee about how experience, helped me to recognize tioned have been achieved and the things are going at his new property. the important contribution which all team is now looking to prepare for the these departments make to the suc­ Detroit competition that lies ahead. Sack: I believe you were at the Taj in cess of an organization. Atlantic City before joining Casino Sack: It was a massive amount of Rama though I've always wanted to work to close the interim casino and Sack: You are in the unique posi­ ask how you first got into the casino the Northern Belle, move to the new tion of having headed two major industry? What about this industry property, hire and train an additional Ontario casinos. When you look interests you and when and where did 1,200 staff and then open. How did back on your time at Casino Rama, you start? you organize your team to accomplish what gives you the greatest feeling this - what procedures did you use? Yee: Actually, before I went to of accomplishment? Casino Rama I was the Senior Corpo­ Yee: Unfortunately, there really Yee: My greatest feeling of accom­ rate Operations person for Carnival wasn't a manual or procedure which plishment was to be part of the Hotels and Casinos based in Miami, addressed how to close two facilities 'CREW', the Casino Rama Em­ Florida. Casino Rama was one of the and open another which was not only ployee Workforce, and to watch the properties which CHC was successful larger than the two but which had growth and development of over in securing for a management contract many amenities that did not exist at two thousand employees - talk and this brought me there. the other two properties, and to do this about a Cinderella success story! all at once. In essence, we had to I started working for Harrah's in Not only was this a success story for coordinate three different workforces, Reno, Nevada in 1966. My first job the facility and its employees, but one - the interim facility; two - the was as a busboy in one of their restau­ for the Mnjikaning First Nation

Casino Windsor's Executive Team

Bobbj' Yee President, C.E.O. Kevin Ron Keith Gila Melissa Liam Richard Terry Glen Chet Laforet Thacker Andrews Leslie Steinberg Sneyd Mignault Black Sawhill Koch Executive Vice Vice Vice Vice Vice Vice Financial Director Casino Vice President President President President President President Controller Slot Controller President Gaming Corporate General Player Resort Human Operations C.F.O. Operations & Admin Counsel Develop Operations Resources Canadian GAMING News Page 5 — Riverboat operation; and three - the WCL employee. now a very successful summer concert new casino, hotel and food and bever­ series. Since you don't have an enter­ age operations. I laid down the objec­ Sack: During its first years market­ tainment venue at Windsor either, any tives and the timelines for meeting ing was a relatively low priority for plans to initiate something similar to them and then relied upon my depart­ Casino Windsor given the absence this, possibly in a tent, at Casino mental heads to do what was neces­ of local competition. How have you Windsor? sary to meet them. We met daily, and ramped up your marketing as the Yee: Unfortunately there is not a at times more frequently to ensure that first casino prepares to open in De­ large enough space to pitch a tent. everything was on track. troit late this summer? However, we have done sponsorships Yee: With limited parking, food and with the Cleary Theatre bringing such Sack: Did you have a special commit­ beverage outlets and entertainment acts as Bill Cosby and Frankie Valli to tee or the like to resolve issues? venues, the interim casino and river- town. Our Showtime Lounge has also Yee: Not really. I felt it was very boat were very difficult to market. undergone a new direction of enter­ important that those who had the on­ With the move to the permanent tainers which includes oldies groups going responsibility for the issues be facility, the marketing functions of such as: Herman's Hermits, the To­ the ones who resolved them up front. coupons, entertainment, private par­ kens and Crystals, The Association, I didn't want people suggesting solu­ ties, etc. are not a response to Detroit Gary Puckett and the Union Gap, The tions only to have them walk away competition, but the right thing to do Platters, Grassroots, B.J. Thomas, and leave it for someone else to imple­ for our clientele because the ameni­ Davey Jones, etc., along with our very ment. ties and the venues now exist to do own 'Tribute' to some of the leg­ this. endary artists such as Elton John, Tina Sack: When you took over at Casino Turner, Neil Diamond, Shania Twain, Windsor, did you reorganize your op­ Sack: With three casinos in Detroit etc. erational structure and if so, how and and one in Windsor, Windsor/De­ Currently Casino Windsor has the why? troit will become a regional market. greatest concentration and variety of This having been said, the consensus Yee: Over the past year, there have entertainment for any casino in of those we talk with is that there been numerous changes as to report­ Canada on a year-round basis. will also be intense competition ing lines. We have re-allocated some amongst the properties. From your direct reports in order to be more Sack: Let's talk about your gaming perspective, what is the likelihood of floor - anything which makes your efficient and we created more ac­ the four properties working together countability thoughtout the organiza­ floor unique? Any plans for changes on such things as marketing, shuttle here? tion. buses, etc? Yee: We offer a unique opportunity Sack: Windsor Casino Ltd. operates Yee: Each of the facilities will at­ Casino Windsor on a contractual basis tract and retain their share of the Casino Windsor's Vital Statistics for the Ontario Casino Corporation. market depending on location, Present How long is your operating contract amenities and most important from a and what is the formula used to deter­ service level. The emphasis from all Gross Revenue $872 million * mine WCL's remuneration? operations will be to grow the Wind­ (first 12 months) Yee: WCL's operating contract sor/Detroit market as a gaming desti­ nation and extend the market. All Net Profit $480 million * started when the permanent casino (last fiscal year) opened and lasts for 10 years. As for the new construction and renovation the formula, fees are based on revenue of hotel rooms on both sides of the Total Attendance 7,263,500 * and profitability. river will help the region to grow from a day-trip to an over-nighter. Win/Player/Visit $120.02 * Sack: Does WCL have the option of Employees 5,100 extending the contract beyond the ten Sack: How about exchanging secu­ year timeframe? rity information on scams and the Gaming Area 100,000 sq ft like? Yee: No it does not - but if both Slots 2,948 parties agree an extension is possible. Yee: Security and integrity issues are areas where all casinos have al­ Table Games 131 ways cooperated and communicated Sack: Who employs the people who Total gaming 3,852 with each other. work at Casino Windsor - do they positions work for WCL or the OCC? Sack: When at Casino Rama you * CGN's 12-month estimate is based on Yee: Everyone, including myself, is a and Ed Leichner launched what is OCC stats for first 6 months as no further information is available. Page 6 Canadian GAMING News — for our nickel slot customers by way sign and development will be con­ of a themed area called the 'Big Nova Scotia tracted out. Nickel Mine' with 114 slot machines Gaming Corp The NSGC expects to have both its in this area. We have also created a offices open and in operation by bank of machines called the 'Land of Opens New Offices November 30, 1999 at which time it the Giants' where we put six Mini will assume responsibility for the Bertha machines together. We also On March 29, 1999 the Government of Nova Scotia announced it would province's 3,600 VLTs. March 31, offer a 'Money Time' themed link that 2000 has been set as the date for the has random bonus slot payouts. The end its partnership in the Atlantic Lottery Corporation and reassign NSGC to assume responsibility for the table games side has recently added ticket lottery operation. four Craps tables and increased our the operation of its VLTs and lotter­ Pai Gow Poker tables. ies to the Nova Scotia Gaming Cor­ The ALC is providing promotional poration (NSGC). The NSGC is al­ expertise and information and finan­ ready responsible for that province's cial systems management to seven Sack: The City of Windsor has just two commercial casinos. horse racing tracks, three of which are turned down plans for a larger confer­ in Nova Scotia, on a one-year trial Dara Gordon, Acting NSGC Chair, ence venue. Given that the Detroit which ended June 30, 1999 (see our casinos will have conference facilities on June 16 announced more details August, 1998 issue). We are told and that it could be argued that your of the government's plan. ALC will continue to be responsible casino needs a larger conference facil­ The NSGC's Halifax office will be­ for the Nova Scotia tracks and that ity to compete with them and attract come the headquarters for all gaming its involvement with New Brunswick larger, moneyed conventions, is this in that province with a second office and P.E.I, tracks will also continue. something you are looking at? to open on Cape Breton Island - lo­ On the issue of the NSGC's RFP for Yee: Our primary business is casino cated at the north-eastern end of the province. The Halifax HQ will 3,300 new VLTs, the contract and operations. Our goal has always been evaluation for which was being under­ to work in partnership with the City of house the NSGC's casino activities as well as finance and administrative taken by ALC, ALC and NSGC have Windsor and help promote the tourism agreed that the NSGC will assume full and business activity for the region. A functions related to the management of the lotteries and VLTs. The Cape responsibility for this. NSGC says larger conference facility would be this will have the effect of delaying nice but it is not a crucial issue to our Breton office, for which a site will be selected once a survey is completed the announcement of a preferred sup­ operations. of available space, will accommodate plier until the end of July. lottery and VLT operations for the Sack: What about a larger entertain­ Several months ago we carried ads for entire province. Nova Scotia has a new C.E.O. at the NSGC. The ment venue? Larger gaming floor, 1,300 lottery and 700 VLT sites. broadening of the NSGC's mandate larger hotel, retail space? has necessitated a reworking of the Employment at the Halifax headquar­ Yee: Larger is not always better! C.E.O.'s job description and delayed ters will increase to 50 from 12 with Quality of the product and execution the selection though we hear that, the Cape Breton operational office of services are high on our list. once again, an announcement is likely employing 70. The Cape Breton jobs toward the end of July. Sack: Last month we wrote of a and the additional Halifax jobs are The Government of Nova Scotia's de­ rumour to the effect that you might new. In addition to these jobs, ALC already has field offices in Dart­ cision to split its lottery and VLT take on a high profile role with the operations from those of the other Ontario Casino Corporation. Any­ mouth (near Halifax) and Sydney (on Cape Breton Island) employing 60 three Atlantic provinces would appear thing to this? people. These offices will remain not to make economic sense. The Yee: Ivan, check your source ... it's open and become part of the NSGC consensus is that it is more cost effec­ not a very good one. I have never had which will take its total staff to 180. tive for all concerned to spread ALC's a conversation with any member of The NSGC says the increased cost of administrative costs over four the OCC regarding this issue. Stick to its new staff and accommodation will provinces, with a combined popula­ reporting trends, current facts and is­ be more than offset by savings from tion of 2.3 million, than to have Nova sues relating to the Canadian gaming not having to fund its current alloca­ Scotia, with approximately 900,000 industry rather than gossip! tion of ALC's administrative budget. people, duplicate everything. Alberta changed its mind about splitting from In March the NSGC stated that it was Sack: Thank you. possible a portion of its operations the Western Canada Lottery Corpo­ might be contracted back to ALC or ration when the numbers showed that Drafts of our interviews are elsewhere. While decisions have yet it would be more expensive to go it reviewed by our guests to be made, it is possible that initia­ alone. before publication. tives relating to marketing, game de­ In Nova Scotia's defense, we under- — Canadian GAMING News Page 7 stand that there was agreement amongst the four provinces before the Casino de Charlevoix / Manoir Richelieu split that Nova Scotia was not getting its fair share of gaming profits, an argument it now uses to balance-off the increased costs of setting up its own operation. And then too there are the advantages of having many of Nova Scotia's new gaming jobs cre­ ated on Cape Breton Island - a region \ S£BS which is losing jobs because of fed­ eral government cutbacks. Casino Brantford The OLC's Brantford casino, now un­ der construction with PCL serving as project manager, will open in early October. This property will, at the start, be open 12 hours a day to give Pictured above is Loto-Quebec's Casino de Charlevoix complex. At left is staff an opportunity to hone their the casino which has been doubled in size to accommodate 788 slots and 21 skills. table games on the gaming floor. To the centre of our picture is the Manoir The $50 million project (up from the Richelieu which received close to $100 million in renovations as well as a world-class health spa, the building for which is linked to the hotel and $16 million which RPC Anchor was extends to the right of our picture. To the left of the casino is the St. going to spend when it planned to Lawrence River while the complex's 18-hole golf course extends behind the operate a casino in this same build­ manoir and along the river. ing), will have 450 slots and 60 table games. We do not understand why so pointment, we hear that Vic Po- many tables given that the slot / table leschuk will become President & Diamond Tooth ratio for all of Canada is closer to 23:1 C.E.O. when Guy Simonis retires at with slot play growing more rapidly. the beginning of October. Gerties Casino Brantford's tables will have a maxi­ On may 16, the Klondike Visitors mum bet of $100 which will keep Star of Fortune Association and 65 employees repre­ them from siphoning off higher limit sented by the Public Service Alliance Star of Fortune's New players from Casino Windsor. of Canada signed an agreement Westminster-based 245' riverboat, whereby returning employees will re­ to be known as the Royal City Star Detroit ceive a $325 signing bonus and new Casino, arrives in Victoria, B.C. employees a $100 signing bonus as The Mayor of Detroit is apparently July 7 where it will be removed part of a three year agreement which concerned that experienced Casino from its heavy-lift ship and in­ will also give employees of the Yukon Windsor employees will seek promo­ spected by the Canadian Coast casino an across the board increase of tions within Detroit's three casinos. Guard. Eight to ten days later it 1% in year three of the agreement. Citing the fact that Casino Windsor will move under its own power to employs very few Detroit residents, Vancouver where structural and de­ New merit pay levels have been added he has written into Detroit's casino sign changes will be made including to several classifications, a new injury agreements requirements that at least the reconfiguration of its smoke on duty benefit will be provided and 50% of their employees be Detroit stacks - Mississippi riverboats had the KVA has committed to maximiz­ residents. two forward stacks while Fraser ing hours to employees based on se­ This is not the kind of thing Casino River riverboats had a single stack niority and available hours. Windsor will discuss though we hear behind the wheelhouse - we learn PSAC has agreed to reduce Slot De­ Detroit operators are very sensitive to every day! partment Shift breaks to one 15 the mayor's concern. Work is underway on shore facili­ minute break every four hours. These ties with the casino to open in employees previously took the same British Columbia September. 1/6 of net profit will be breaks as table games employees - one allocated to the construction of a 15 minute break every hour. Tip Lottery Corp 210-room hotel and conference cen­ policies are now attached to the col­ In what would be a very popular ap­ tre. lective agreement. wmmmmmmmmmmsx • Page 8 Canadian GAMING News — tertainment, a Venezuelan company. Canadian Gaming Thunderbird and Tamanaco, which People On owns and manages hotels in Stocks Venezuela, will develop, own and The Move operate casinos, bingo parlors and Saskatchewan Indian Gaming 52 52 Name Jul % other gaming related operations in wk wk 1 Venezuela. In 1998 Venezuela Authority Hi Lo closed all its existing casinos. Under Dutch Lerat, President & C.E.O. 3.20 0.57 Applied Gaming 1.03 -14 new legislation, the government is has made the following appoint­ Solutions (AGC) 5 authorizing the establishment of new ments: casinos in five star luxury hotels in 28.50 4.85 CryptoLogic Inc 17.25 -10 designated tourist areas. Curtis Standing, formerly Assis­ (CRY) 1 tant General Manager at the North­ On June 4, Dion Entertainment an­ ern Lights Casino has been ap­ 6.35 0.05 Dion Entertainment 2.80 -42 nounced that Glen Larson, a Holly­ pointed Acting General Manager. (DIO) I wood producer of such programmes He replaces Cam Snyder. as Quincy, Knight Rider and Mag­ 5.50 2.00 Great Cdn Gaming 3.25 n/c num P.I., had joined forces with it to Wayne Semaganisis, Assistant (GCD) 3 launch a new television production General Manager at the Gold Eagle company - Larson-Dion Produc­ Casino has been appointed Acting 3.49 0.20 Internet Global 1.01 -67 General Manager. He replaces Networks (IGN) 3 tions. Larson-Dion Productions will develop, produce and distribute in­ Lome Bick. 1.00 0.20 Int'l Thunderbird 0.85 -31 teractive televised game shows in Star of Fortune (INB)7 North America. Eric Luke, President has announced 5.00 2.25 Lake City Casinos 3.65 -11 Management and control of the new the following appointments: (LCG) 3 company is shared equally between Dion Entertainment and Glen Lar­ Jean Gauthier, formerly Director 1.64 0.04 Network Gaming 0.92 n/c son Group with Larson having a of Gaming Operations with the Corp (NGQ) 3 casting vote in creative matters. Manitoba Lotteries Corporation has Dion has agreed to fund initial start­ been appointed Director of Gaming 0.91 0.16 PlayStar Corp 0.32 -20 up costs through a shareholder's Operations. (PSCKF) 4 loan which will be re-paid prior to Kathy Cowan has been appointed 17.00 0.37 Starnet 24.00 + any sharing of profits. After repay­ Director of Human Resources. She (SNMM) 4 126 ment, Dion will receive almost three formerly held executive positions million dollars of the first eleven within B.C.'s hotel and labour sec­ 1.56 0.34 Stuart Entertainment 0.19 n/c million dollars (US) of net income tors. (STUA) 4 and 50% thereafter. Graham Nash has been appointed 1.60 0.48 Trian Equities 1.00 -19 Chief Financial Officer. Previously (TEQ) 3 John Huxley with a major accounting firm, he has On June 1, John Huxley, based in also worked within the venture capi­ 0.97 0.25 Venture Pacific Dev 0.20 -49 London England, opened a North tal sector. (VPV) 3 American sales office in Woodbrige, Joe Ennis has been appointed Di­ just north of Toronto. This bring rector of Hospitality, Food & Bever­ Where traded: Huxley's regional offices to three age. He formerly undertook this 1)TSE 2) CDN Unlisted 3) VSE with the company having already function as director with a promi­ 4) NASD over-the-counter 5) ASE opened offices in Johannesburg, nent private club. South Africa and on Marguerite Is­ Contrary to April when we saw a land, Venezuela. Rick Vael has been appointed Di­ number of Internet companies, and rector Security & Surveillance. The Woodbridge office includes a Internet-wannabe companies take off, Rick has spent a total of 30 years showroom where Huxley is display­ and May, when many of these compa­ with the RCMP and New Westmin­ ing its complete line of gaming nies appeared to be consolidating ster police departments. equipment. Canadian Sales man­ April's gains, June has been a down ager, Brad Broderick heads up the Casino Sault Ste. Marie month for 9 of our 13 companies. Canadian office. One, Starnet showed a big gain. In­ Barry Pritchard previously ternational Thunderbird, on June Huxley has also announced the sale Casino Shift Manager at Casino 22, 1999 announced a joint develop­ of an Electronic Sic Bo table to Rama has been appointed general ment agreement with Tamanaco En­ Casino Windsor and a second elec­ manager. He replaces Willy Wilson. tronic table to Casino Rama. - Canadian GAMING News Page 9 Update - British Columbia % proposed giving you, as gaming min­ / Y ister, the authority to set the terms and Honourable Michael Farnworth conditions for new and relocated gam­ Gaming Minister ing facilities if agreement could not be reached with host municipalities. Is At age 39, the Honourable Micheal predecessor, your government still committed to Farnworth is an up-and-comer within by which r bringing in legislation which would the British Columbia Cabinet. Born proposals for eight destination casi­ allow you and BCLC to do these in England, he has lived in British nos received approval in principle. things? Columbia for most of his life where, However, on June 17 you an­ Farnworth: First of all, I remain before being elected to the Legislature nounced an end to gaming expan­ committed to bringing in a gaming act in 1991, he served in municipal poli­ sion. What does this mean in terms though there is no longer time to do tics and worked within that province's of the decisions already made? this in this session. We will probably mining and rail industries. He was Farnworth: My June 17 announce­ do this, at the earliest, in the session appointed gaming minister in Febru­ ment does not affect the negotia­ which begins in the spring of 2000. ary, 1998. tions with the six destination casino As for my own involvement as gam­ operators which do not yet have ing minister, I firmly believe that deci­ Sack: You are credited within British contracts, with the remaining two sions related to gaming licences Columbia gaming as having brought agreements having already been should not be made by politicians. 'some' order to what has been, for too signed. What I said is that we will We are not involved in liquor and many years, gaming policy chaos. not approve any additional casinos other licensing decisions so why gam­ What were your first goals when you beyond this. ing? On June 17, I announced that 1 became gaming minister? will appoint an independent advisor to Farnworth: I wanted to have a clear Sack: How about more bingo halls recommend an arms-length process understanding of the issues and the or the possibility of placing slots at for dealing with such things as the positions of the stakeholders before I horse racing tracks: does your June relocation of existing gaming facili­ made any decisions so I first asked for announcement rule these out? ties. a white paper which identified the Farnworth: This would have to be issues and where people stood on approved by the municipality in a Sack: Is this a permanent position and them. This is what is commonly re­ manner consistent with the memo­ what type of advice do you expect to ferred to as the Interim Gaming Re­ randum of agreement signed with get from this advisor? port. the Union of B.C. Municipalities. Farnworth: The person will provide What became quickly apparent was The agreement affirms the ability of advice on the details of a process that that there are strong pockets of oppo­ local governments to make deci­ could be used to determine whether sition to gaming in this province that sions as to whether new facilities or casino re-locations could go ahead, in will always be there no matter what relocated facilities will be permitted the context of the MOAs recently we or anyone else do and that this will within their boundaries and the abil­ signed, and without political interfer­ always have to be taken into account ity of local governments to define ence. No decision has been made as when making gaming policy. It also the extent, scope and type of casino to whether the position will be perma­ became apparent to me that while and bingo gaming. It also affirms nent. there is also much support, in fact the ability of local governments to majority support for gaming, this sup­ decide whether slot machines could Sack: Is this function not something port is being voiced much less force­ be placed within their boundaries. which should be part of the British fully than is the opposition to gaming Columbia Gaming Commission's and that this very much affects the Sack: This past winter, courts came mandate? optics of gaming. down with decisions in cases Farnworth: No, the BCGC's mandate brought against the British is only to deal with licensed charitable Sack: Where is most of the opposi­ Columbia Lottery Corporation by gaming. tion coming from? the cities of Vancouver and Surrey. Farnworth: While there are adhoc Both upheld a municipality's right Sack: What about Vancouver's casi­ groups opposed to gaming across this to bring in zoning which prohibited nos? They are restricted to table province, most of the opposition is new gaming. As part of his white games and non-alcoholic drinks and coming from several municipalities - paper, Rhodes tried to return the will be at a real disadvantage when primarily those of Vancouver and Sur­ initiative to the province by prepar­ competing with casinos in neighbour­ rey in the lower mainland. ing a draft gaming act which gave ing communities which are allowed BCLC the right to set aside the both. What are the possibilities that Sack: As gaming minister you contin­ court decisions and operate slots in Vancouver casinos will still be given ued the RFP process, started by your casinos located in municipalities slots and allowed alcohol? which opposed them. Rhodes also -Page 10 Canadian GAMING News — Table Gaming For The Millennium

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55 SILTON ROAD • UNIT 4 • WOODBRIDGE • ONTARIO L4L 728 • TEL: (905) 264 6311 • FAX: (905) 264 6322 MOBILE: 705 323 7505 • NATIONWIDE PAGER: 888 683 2408 • WEB: www.johnhuxley.com Canadian GAMING News Page 11 Farnworth: As I have said, munici­ bingo gaming, including electronic Code; we will bolster our efforts to palities will determine for themselves bingo, be placed under section 207 investigate and prosecute illegal gam­ whether they wish to have slot ma­ (1) (b) of the Criminal Code. Since bling; continue to fund programmes chines within their boundaries. There last July, electronic bingo in your for problem gambling and provide may, however, be opportunity for the province has been conducted under greater transparency in licensing ac­ casino to relocate to communities that 207 (1) (a) of the code. Will this tivities of the B.C. Gaming commis­ are prepared to accept slot machines. still be moved to (l)(b)? sion. We will follow through on our Alcohol will not be permitted at com­ memorandum of agreement with Farnworth: No, electronic bingo UBCM to give local government 10% munity casinos and not on the gaming will now stay under 207 (1) (a) floor in destination casinos. of community casino and 116 of desti­ though our Attorney General will nation casino net profits; we will con­ soon write to the federal Minister of firm our guarantee of a minimum of Sack: With reference to some of Justice to request that the Criminal Rhodes' other recommendations, will $125 million annually with the B.C. Code be amended to permit chari­ Association for Charitable Gaming; casinos in your province still be made ties to operate electronic bingo un­ agents of the crown? we will continue our bingo facility der the charity section of the code. revenue guarantee and finally, I will Farnworth: Rhodes proposed this so It doesn't make sense that the two work toward ensuring that gaming op­ as to take casinos beyond the reach of be separated. erates within a sound legal frame­ the municipalities. As we have now work. reached an agreement with the munic­ Sack: What are your priorities for ipalities which gives them the final the months ahead? Sack: Thank you! say over gaming within their jurisdic­ Farnworth: We will appoint an in­ tions, this will no longer be required. dependent advisor; we will pursue Drafts of our interviews are discussions with the federal govern­ Sack: Rhodes recommended that all reviewed by our guests ment on changes to the Criminal before publication. Commercial Casino Revenue and Visitor Statistics

City Month Total Table Total Slot Gross $ Change Daily Change $Win/ tables change slots change million gross attend attend Player previous previous month previous previous month month month month Sheraton Casino Halifax Halifax May 36 632 4.2 +0.3 4,600 +490 29.58

Sheraton Casino Sydney Sydney May 20 350 2.2 +0.1 2,200 +20 32.12

Casino de Montreal Montreal May 118 3,039 + 10 38.3 -0.3 18,600 -900 66.54

Casino de Charlevoix Pte-au-Pic May 14 +2 294 +16 2.7 +0.4 2,010 +360 43.31

Casino de Hull Hull May 55 1,359 16.5 +0.9 9,000 +460 59.15

Casino Windsor Windsor Dec (i) 136 + 1 2,948 74.0(i) +4.5 18,700 -2,300 129.04

Casino Rama Orillia Dec (i) 112 2,312 +12 43.0(i) -2.2 12,300 -3,600 114.00

Casino Niagara Niagara Falls Dec (i) 139 2,776 -1 55.6(i) -2.7 27,200 -7,600 66.66

Crystal Casino Winnipeg May 28 221 2.1 +0.1 1,500 +500 45.16

Club Regent Winnipeg May none 570 4.2 +0.4 5,000 27.10

McPhillips Street Stn Winnipeg May none 566 4.8 +0.3 6,200 +200 24.97

Saskatchewan Indian N. Battleford/ May 58 620 5.0 6,000 27.77 Gaming Authority Prince Albert/ Yorkton/ Carlyle Casino Regina Regina Dec to 41 620 4.1 +0.1 2,960 -290 44.68

Notes: (1) Most recent statistics available. Canadian GAMING News -Page 12 3 3286 51789507 0 Letter to the Editor nos and provide post-opening oper­ ning. It also shows disrespect for gam­ ating expertise. The results were ing counterparts in that this is bad PR Dear Mr. Sack: successful casino openings with rev­ for the whole Canadian gaming com­ I write in response to your article enue flowing steadily into govern­ munity. ment coffers from each property. 'Casino Sault Ste. Marie Opens' as Also, how do you explain to 500 em­ This professional approach ensures contained in your June 1999 issue and ployees or so that, due to lack of that the public's interests are ade­ as I believe your article should also planning, they can't work their full have covered these critical questions: quately protected and that its tax dollars are spent wisely. week? How do you explain to govern­ What are the real costs associated ment the loss of revenue, and how do with a casino not being ready for its Why then didn't the Ontario Lottery you explain the increased costs in­ opening date and what are the real Corporation (OLC) learn from its curred by sub-trades during construc­ costs of not using the best expertise counterpart, the OCC? An explana­ tion? These are the real questions! and resources available? There are tion may be that some lottery offi­ lessons which can be learned from the cials across Canada dismiss the use From my experience, human relations, Sault casino's 'rocky' opening and of consultants and convince their coin and cage, procurement, informa­ applied to other government run casi­ superiors that they have the re­ tion technology, food & beverage and nos. sources to perform this enormous slot & table games issues are dis­ task. tinctly separate and no one can pre­ While some governments have turned tend to master them all. Yet, some the opening of casinos over to lottery These decision-makers should real­ corporations hire the bare minimum corporations the expertise to do this is ize that bringing in outside help is of outside help and try to 'fill-in' with clearly not available within some of not a threat to their positions but an internal staff who, even if they have these corporations. asset in that lottery ticket sales and attained personal achievement within Well established lottery corporations casino operations are not alike. Op­ the corporation, have no casino expe­ erating a casino is not like operating out West and those like Loto-Quebec rience. Not only is this unfair to the a lottery terminal - you don't just recognized this critical issue and hired now burdened staff member, but it plug it in and, presto, you have a consultants to implement each phase lacks vision. How can inexperienced of their casino pre-openings. Also, casino. Post evaluations into failed casino openings show that they are project managers justify the need for they trained not only future adminis­ outside help when they don't know trators (consisting mostly of lottery usually the result of a lack of casino expertise. the roles and responsibilities for that people with no casino experience) but sector? You can't sell something that staff responsible for the day-to-day Casino consultants, with their exper­ you don't fully understand. operation of their casinos. Other gov­ tise in opening new sites, have ernments, like Ontario, created the benchmarks and personal experi­ Mr. Sack, it would be wise that deci­ Ontario Casino Corporation (OCC) ences that are proven and are very sion makers learn from this case. which hired operators with hands-on profitable for their employers. The While this letter may not win a popu­ experience to design and open its casi- consultants I have worked with were larity contest with those responsible very aware of their mandates, knew for the failure of casino openings, it the right people, and had no prob­ will shine light on those areas of our Canadian GAMING lem getting gaming control ap­ industry that need to re-examine their provals because they knew what was philosophy and approach regarding News™ required. the proper implementation of gaming properties. is published monthly At your first two conferences you To Subscribe: had speakers on this subject. 'How Donald Robinson to open a successful casino' by Ron Gaming Procurement Consultant Tel: (905) 855-5370 Sheppard, formerly with Casino de Montreal, Quebec Fax:(905)855-1869 Montreal and Dean Macomber, then donaldrobinson@sympatico. ca President at Casino Niagara, who Editor's note: Mr. Robinson was em­ Editor: Ivan Sack explained the Navegante experience ployed by Societe des casinos du with Casino Niagara where Naveg­ Address: Quebec from 1993-96, consulted for ante used consultants to open Casino Niagara's pre-opening 1996- 1690 Truscott Drive Canada's largest casino in an incred­ 97, for a variety of western operators ible four months. Mississauga, Ontario in 1997-98 and most recently in On­ Canada Missing a grand opening not only tario 1998-99. 'Letters to the Editor' L5J1Z6 affects the property and the operator are printed to encourage debate and but sends a message back to this do not necessarily represent the views www.eanadiangaming.com industry of ineptness and poor plan­ of this publication. This publication is not to be reproduced without the written consent of Canadian GAMING News