Canadian Gaming News

Issue 100 March 2003 Celebrating 100 issues with more to come ! The first issue of Canadian Gaming for Proposals (RFP) for proponents News, or Canadian News as to build and operate in Hali- it was then called, went out in May fax and Sydney. Responses were 1994. Our PublisherIEditor, Ivan due July 29. There was surprize Sack had borrowed money to meet when it was found that the wording family expenses during the time it of the RFP was almost identical to took to create a list of possible sub- that of the RFP the OCC had issued Ivan Sack scribers and to research, write and for Casino Windsor. There were I 1 print the May issue. seven responses with ITT Sheraton the first such vote in Canada. He sold 8 annual subscriptions the winning. In 1995 the Yukon's Diamond Tooth first month at $990 each. The next Sahara, Harrah's and Holland Gerties Casino celebrated its 25th month he cut his price in half and sold Casinos responded to a September anniversary; Michigan Governor En- 9 more. By the end of the first year he RFP to operate Casino Regina. gler said no to Detroit casinos; our had cut the price again and had almost Holland Casinos won that one. Fed- industry stopped a federal proposal to fifty subscribers. For most of this eration of Saskatchewan Indians tax lottery and casino winnings; and time he had never set foot in a casino Chief Roland Crowe was less for- month after month passed without a - no comments please. tunate. He lost his job when oppo- RFP to select an operator for Casino Canadian Gaming News is today read nents said he had exchanged the Rama. across Canada and in seventeen addi- Saskatchewan First Nations' rights When Rama's RFP was issued, on tional countries. to operate their own casinos for job May 1, it was structured differently and profit guarantees at Casino from that for Windsor. Proponents May 1994 was the same month that Regina. Casino Windsor opened with Mike were not required to submit a design. Rumbolz as its president. A ham- In 1994 we scooped the Govern- Proponent costs for Windsor got out burger at the casino's fast food court ment of Quebec by announcing that of hand with some spending in excess cost $5 (fries were extra); valet park- a casino would be built in the City of $1 million on their proposals as ing was $50 per car; daily slot gross of Hull - what is now Casino du they were required to provide their exceeded $600 per machine, and table Lac-Leamy. The City of Ottawa own architectural designs - which minimums were $25. Any wonder saw this as dashing its hopes for a were then ignored by the OCC. The that, per square foot, this was the most casino. dome over Casino Windsor's entrance profitable casino in the world? At this time we also wrote that comes from one of the losers - from Bally's design. 1 Casino de Montrkal had already been Steve Wynn's proposal for a mega opened for six months by this time casino resort on the City of Vancou- The Ministry of Aboriginal Affairs, with Ron Sheppard its first General ver waterfront would go nowhere. and not the OCC, was responsible for Manager. While smaller than today, Wynn, who had been led to believe selecting a site and operator for what it was grossing $1 million a day. that his proposal had the support of became Casino Rama. then-Premier Mike Harcourt, re- It gave the fourteen First Nations In June 1995 Casino de Montre'al ceived a rough welcome when he gained the distinction of being one of which competed for the casino the went to Vancouver to present it. He right to sign operating agreements the few North American casinos to was so angered by the response that close because of a labour dispute. with operators. When the OCC be- he killed the initiative on his flight came involved it refused to recognize Within a year a strike also closed back to Las Vegas. Casino Windsor. the agreement which the Mjikaning 1994 wrapped up with the City of First Nation, the winner, had reached On June 1, 1994 the Nova Scotia Niagara Falls voting, 12,666 to with Bally Gaming. Bally threatened Project Committee issued a Request 7,640 to support a casino. This was to sue though never did. -Page 2 Canadian GAMING News - telford and Prince Albert. The fol- Quebec's involvement, lost their in- lowing month it opened casinos in vestments. We also received a brown Casino Niagara Yorkton and on the White Bear First envelope which said that the Ontario Nation. Vindication for Chief government had hired a consultant to Crowe. advise it on privatizing the OCC. Casino Regina opened January 25, In February 1997 Ontario announced 1996. It was immediately handi- 44 charity casinos with a total gaming capped by wildly optimistic profit area double that of that province's projections contained in a consul- three commercial casinos. Municipal- tant report used to gain political ities could put the issue on their up- approval for the initiative. Within a coming November municipal ballots. year its first president, Ron Sten- It was a one-sided debate with the gler, was gone. government refusing to defend the ini- Ken Fitzgerald In February of that year the Ontario tiative as their polls said it was a loser. . Thirty-eight municipalities held refer- Ken Fitzgerald has joined Casino government, citing contracting ir- endums with only Brantford, Hamil- Niagara as Executive Director of regularities which were never ton and Thunder Bay agreeing. On Entertainment and Convention Ser- found, halted construction on June 26, 1998 the government killed vices. Casino Rama. It also said it would the programme and said that Ontario For the past nine years Mr. Fitzger- keep the casino's 20% win tax which the previous government had would, instead have four charity casi- ald has been with MGMIMirage nos. It later paid the operators who where he held various positions in promised to Ontario's 133 First Na- tions. This is still before a court. were denied the right to build the the entertainment and conventions casinos $52 million in compensation. departments of the MGM Grand, In May 1996 Ontario announced the Golden Nugget, and the Board- that it would place 20,000 VLTs at In May 1997 the Manitoba Lotteries walk Hotel and Casino. horse racing tracks, and in bars, ho- Corporation announced that it would enlarge McPhillips Street Station In addition to the management tels, restaurants and in 50 small casinos across that province. Its Casino; Club Regent Casino, and skills and experience required to close the Crystal Casino. operate a large entertainment and Monte Carlo casinos, which fun- convention services operation, neled money to charities, would be On January 14, 1998 British Supreme Fitzgerald's expertise also includes closed. Court Jusfice Owen-Flood turned the complex technical elements of a That summer Casino Rama opened charitable gaming on its head with a professional showroom including and the Government of Alberta an- ruling which said that governments acoustics, recording and sound- nounced that it would leave the could not share in the profits from mixing equipment, lighting and spe- Western Canada Lottery Corpo- charitable gaming. Known as the cial effects. ration. It then changed its mind. Nanaimo decision, it has become one of the most important decisions in The RFP for Casino Niagara was Canadian gaming. Its significance is In August 1995 the OCC announced released September 12, 1996 with that though it went against govern- it would pay $23.5 million to lease a responses due March 13, 1997. Louisiana riverboat - what became ments, they turned it around and used Four proposals were received it as an excuse to rewrite the rules and the Northern Belle Casino to alle- - though, unlike Windsor, the big op- enter areas of gaming which had pre- viate pressure on Casino Windsor. erators did not respond. That viously been the exclusive preserve of Two years later the OCC declined to September B.C. Deputy-Premier charities. No one other than the chari- purchase it for $1. Dan Miller talked of another large ties suggested that the Criminal Code September saw eleven Alberta First casino - a large Monte Carlo-style be amended to allow them to continue Nations form a First Nations Gam- casino. He was criticized and im- to be involved. mediately dropped the idea. ing Congress. We also wrote that 100 issues and almost nine years is a * Binion's Horsehoe Casino had de- Edmonton's Baccarat Casino lot to cover in two pages - and it velopment agreements with the Louis opened; Superstar Bingo was an- turned out we could not. The first Bull and Enoch First Nations; and nounced in Ontario; and Loto- time we wrote this article we mostly that Casino Magic had an agreement QuCbec said, a month later, that it quoted headlines which left too much with the Tsuu T'ina First Nation. would operate a casino onboard a out. And so we decided to give you a In November Ontario's newly elected Miami cruise ship. $50 million was snap shot of some of the things which Harris government approved a casino spent on lawyer, consultant and de- happened in the the early days of our for Niagara Falls and the sign fees but the ship was never publication. This is a dynamic indus- Saskatchewan Indian Gaming Au- built. Many small investors who try with a lot of history. We look thority opened casinos in North Bat- bought shares because of Loto- forward to our next 100 issues. -Canadian GAMING News Page 3 -

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7th Annual Canadian Gaming Summit

Please join us in the Governor General Room 1.A Westin Ottawa Hotel IMonday and Tuesday Nights - Canadian GAMING News Page 5 - imaginative products casinos provide. Feature Interview More and more casinos are consider- ing the use of lasers for entertainment, Bob Baldridge special effects, and displays. President We can meet virtually any casino Laser Fantasy International need. Our shows can be projected inside or outside which means that we Bellevue, Washington-based Laser applications. can do everything from transforming Fantasy International, founded in T'hey are, for example, used in the an indoor lounge or theatre to painting 1977, is the world leader in laser manufacture of automobiles, at go- the sky over a casino. animation, display and effects. cery checkout counters, and to drill Our displays can also be permanent LFI is renown for lighting applica- tunnels. with a show, for example, each night or they can run for a shorter period (. tions using laser and multimedia. The We specialize in entertainment ap- company S high projZe laser installa- plications for lasers. For example, such as the show at the PNE. They tions include: Cave of the Winds in we designed a permanent laser light can also be tailored to a specific pur- Colorado Springs, Seoulland Park in show which is projected nightly on pose, like a casino opening. South Korea, Calgary's Millennium the side of the Grand Coulee Dam in Because of the adaptability of laser Park, and the Pacz9c National Exhibi- Washington state. This is a mas- light shows they can also be closely tion. sive, spectacular light show. We tied to many different budgets. designed a colourful graphics show The former Founder, President & Laser shows never disappoint. Bright, C.E.0. of Circuit Technology, Robert which is projected on a 180' diame- ter hemispheric dome for the Silver patterned lights and pictures are a Baldridge purchased Laser Fantasy tasteful, artistic and imaginative way in 2002. Legacy Casino in Reno; Splash 2 at the Riviera Casino, the Star Trek for a casino to attract attention and Exhibit at the Las Vegas Hilton, and make the kind of statement it wants to Sack: You are obviously an accom- make about itself. plished businessman. Given the op- a laser display for the MGM Casino portunities open to you, why did you in Las Vegas. At the MGM there Sack: How do you decide what type choose to go into the laser business? are laser displays with very precise of laser programme is right for a graphics as well as wallpaper. Baldridge: Primarily because it's fun. client? Who comes up with the ideas, It's fun to bring entertainment into Sack: Wallpaper? the plan? people's lives. I also bought a busi- Baldridge: Wallpaper is an industry Baldridge: We talk with our clients to ness which had been well managed by get an idea of what they want, where its founder who, by the way, is still term used to describe the projection of designs and patterns on a wall. they want it, and how much they want with us, and is respected across the to pay. Sometimes a client will al- industry. Sack: Please continue. ready have a specific idea or concept in mind though more often than not Sack: What does Laser Fantasy Inter- Baldridge: In Canada we also de- our designers and artists come up with national do? For example, does it signed a permanent laser light dis- ideas and we then work with the client design and build its own lasers? play for Calgary's Millennium Park to create something to meet its need. Baldridge: We provide a turnkey ser- and, for the past five years, we have vice for our customers which means designed and provided a light show Sack: In Canada we have all sizes of that we can do everything from con- which runs for two months each casinos. Some the size you find on the summer at the Pacijk National Ex- strip in Las Vegas and others more the n cept to design to manufacturing and installation. hibition, the PNE in Vancouver. size of a casino in Deadwood, Col- We do most of these things ourselves orado. Are laser shows mostly re- Sack: What else is possible? stricted to larger casinos with bigger =A and those things which we cannot do in-house we contract out to suppliers Baldridge: Large resort casinos as budgets? with which we have a strategic part- well as tribal casinos can use lasers Baldridge: Not at all. As mentioned nership. We are the largest laser com- for special events as well as perma- in reply to your earlier question, laser pany in the world; have been in this nent installations. Laser entertain- shows are extremely adaptable in business for 26 years, and understand ment is ideal for grand openings, terms of what can be offered and at this industry as well as, if not better holiday celebrations. theatrical what price. Obviously the bigger and than any other company. shows, and for text messaging. the more elaborate a show is the more Lasers can be used outside to attract it will cost. Sack: What are lasers used for? guests to a casino. An imagina- tively designed laser show rounds Baldridge: Lasers have thousands of Sack: Every product and industry has out and supports the glitzy, upbeat, trends. What are the trends with laser -Page 6 Canadian GAMING News - shows? He had been with the corporation Baldridge: I would say the trend for slightly less than a year. Masters of today is toward multi-media - often In his February 13. 2003 letter of Gaming Law combining video and lasers. The resignation he stated that while the technology is evolving quickly and we claims were false and unfair, he was are able to bring a lot more creativity resigning as they impacted his abil- to the task today than we could, say, ity to fulfill his duties at Loto- four or five years ago. We are doing Quebec. things today which we could not have done then. Longtime board member Robert Crevier has been appointed Acting Sack: Final question. For permanent President & C.E.O.. The govern- shows do you sell or lease your pro- ment has not said when it will make jection equipment? a permanent appointment though an Baldridge: We do both and any com- announcement is expected soon. Michael Lipton bination thereof. Mr. Frigon can best be described as Michael Lipton of the Toronto law an activist president. Shortly after Sack: Many thanks! firm Elkind, Lipton & Jacobs LLP his appointment he began a series of has been selected as Treasurer of Drafts of our interviews are public and media appearances in- the International Masters of Gam- reviewed by our guests tended to make Loto-Quebec better ing Law. Additional officers are: before publication understood and more accountable to President Heidi Staudenmaier, a the public. These appearances in- partner with the Indian Law and cluded explanations of actions Gaming Law practice Snell & Loto-Quebec which the corporation was taking to Wilmer, Phoenix, AZ; Vice Presi- Resignation address the issue of gaming addic- dent Anthony Cabot, Gaming Law tion. Partner, Lionel Sawyer & Collins, Concurrent with this he also di- Las Vegas, NV; Secretary Nicholas rected the corporation in the formu- Casiello Jr., Stem & Weinroth, lation of a response to the class PC, Atlantic City, NJ; and Past action suit brought against it by President Frank Catania, Catania Jean Brochu. This high profile suit Consulting Group, NJ. claims that the corporation and the IMGL is an invitation-only organi- government did not do enough to zation comprized of attorneys, gam- alert the public to, and to protect it ing regulators, and gaming industry from the threat of gaming addiction. executives who have a minimum of Within weeks of his appointment he five-years gaming law experience; a Gaetan Frigon also restructured the corporation's substantial gaming clientele and executive team and its reporting re- who participate in philanthropic, As host of the 7th annual Canadian charitable or educational pro- Gaming Industry Awards Dinner lationships. He created senior man- agement committees to bring a col- grammes related to the gaming in- and as a keynote speaker at the Cana- dustry. dian Gaming Summit & Exhibition, legial approach to decisions and to to be held this month at the Ottawa improve the flow of information Congress Centre and at Casino du across the corporation. mends the expenditure of nearly $600 Lac-Leamy, this was to have been On November 8, 2002 he also re- million to expand, upgrade, and repo- Gaetan Frigon's introduction to leased Gaming In Quebec: A Nec- sition Quebec's three commercial many in the Canadian gaming indus- essary Reorganization. casinos. It also recommends the open- try. This, however, was not to be. ing of a fourth casino at the Mont The latter is a major review of Loto- Tremblant ski resort. Dogged by claims that, while Presi- Quebec's activities and objectives, dent & C.E.O. at the SociCtC des al- and a series of recommendations to While Loto-Quebec does not have the cools du Quebec, the position he held the government for the reposition- authority to make decisions regarding before joining Loto-Quebec as Presi- ing of the corporation's assets and VLTs at horse racing tracks, he also dent & C.E.O., he had been instru- mandate. proposed that the government relocate 1,570 of its VLTs to the four tracks mental in the award of a contract to a In particular, Gaming In Quebec firm with which he had been previ- which already have them. This would aims to significantly reduce the ac- take their total to 2,000 VLTs. (Also ously associated, Mr. Frigon resigned cessibility of VLTs, and recom- from his position at Loto-Quebec. see our December 2002 issue). - Canadian GMINGNews Page 7-

- f - - - w 7 w- c? -"B 4- >- - Canadian GAMING News - to purchase the Canadian Gaming long-term oper- Print All These ating rights for Stocks the Portland With the NEW - Meadows Race- Millennium! Name Feb track together 28 with an interest in Portland It's 5 Printers in I! Chartwell Tech Inc. Meadows real (CWH) 2 estate. The sub- Now you can print photo ID, desk plates and name tags for sidiary has oper- employees easily - without waiting. CryptoLogic Inc ated Portland The Millennium offers: (CRY) 1 Meadows for Print Quality -The Millennium the past two rat- has outstanding print quality with Dion Entertainment ing seasons. No (DIO) I exceptional colour, depth and financial terms vibrancy! Great Cdn Gaming were released. Blazing Fast Speed! Prints a (GCD) 2 On February 21 monochrome card, plate or tag in Magna also an- as little as six seconds. Internet Global nounced that its Versatility - It's five printers in Networks (IGN) 2 fourth-quarter one! loss widened. www. identicam.com Int'l Thunderbird For the quarter 1-800-387-7031 Call today for a no-risk, (NB) 1 ended Decem- no-obligation trial of the ber 3 1 the com- lDenticamTM new Millennium! Jenosys Enterprises -SYSTEMS (JET) 2 pany reported a loss of $24.5 CryptoLogic, a Toronto-based com- Magna Entertainmen million, or $0.23 a share. In the pany which is one of the world's MEC.A) I year earlier quarter the company largest developers of Internet casino recorded a loss of $5 million, or gaming software, has been struggling Network Gaming $0.6 a share. COT (NGQ) 2 since U.S. banks began voluntarily Sales rose to $106.8 million from blocking Internet bets on credit cards. Venture Pacific $92.5 million. Operating expenses The company is counting heavily (VPV) 2 also rose with the company writing- upon British plans to create a licensed off goodwill on some of last year's market for Internet gaming. The Where traded: acquisitions. Higher insurance ex- company has $44.1 million in cash. penses and costs associated with the I) TSE 2) CVE 3) NASD over-the-counter On February 24 the company also an- launch of the company's wagering nounced that it has reaffirmed its rela- February was a comparatively quiet system XpressBet and its 24-hour tionship with William Hill, one of the month for our gaming stocks. Most Horse Racing TV channel also U.K.'s largest betting organizations. changes were either up or down mod- added to operating costs. As a result of the reaffirmation, erately. CryptoLogic has announced lower William Hill has agreed to use Crypto- All three of our heavy-hitters dropped sales and profit for 44 ended De- Logic's online solution exclu- slightly. CryptoLogic was down cember 3 1. In a February 12 an- sively until 2006 and certain online $0.53 or 8%; Great Canadian Gam- nouncement the company said that casino offerings until 2004. ing was down $0.21 or 2%, with revenue had fallen 21% (all figures William Hill's online poker room of- Magna Entertainment down $0.50, in $U.S.) to $8.9 million from $1 1.2 fers Texas Hold7em and 7-Card Stud or 6%. million, and that net profit had games and enables players to play in dropped to $2.2 million, or $0.18 a their preferred currency - U.S. dollars, Of the remainder, Chartwell was up share from $3.7 million, or $0.25 a British pounds, or Euros. The site $0.18, or 18% on the month. We saw share during the year-earlier period. also offers high quality graphics and a no announcements during the month The company also warned that re- chat feature. relative to company activity. sults for the next quarter will also be CiyptoLogic's software also incorpo- On February 7 Magna Entertainment lower as it increases marketing ac- rates anti-collusion features to flag announced that a wholly-owned sub- tivities and expands its British oper- suspicious activity and poker experts sidiary had entered into an agreement ations. monitor hands to ensure fair play. -Canadian GAMING News Page 9 - 2003 Canadian Gaming Industry Award Winners The Canadian gaming industry is very fortunate to have within its ranks individuals whose imagination, energy and abilities have placed them at the forefront of our industry and earned them the respect and admiration of their peers. While it is not possible to recognize each and everyone, we asked you to tell us who you thought was deserving of recognition at the March 1 1,2003 Canadian Gaming Industry Awards Dinner to be hosted by Loto-QuCbec at Casino du Lac-Leamy. We then passed on your nominations to our Selection Committee which was composed of three previous award winners: Aubrey Zidenberg (Display of Excellence Supplier Award 2002), Elizabeth Knebli (Display of Excellence Lottery Award 2002) and Paul Micucci (Display of Excellence Casino Award 2001). R Committee on its choices and extend our sincere congratulations to this year's winners. i ! Outstanding Contribution to the Canadian Gaming Industry Award . Y Ron Sheppard, President, Ron Sheppard 8 Associates Much respected and an elder statesman within our industry, Ron Sheppard has been active in Canadian gaming for over 35 years. Ron Sheppard holds the distinction of having been director of Canada's first gaming regulatory agency and of having opened Canada's first commercial casino - the Crystal Casino, as well as Casino de Montrdal and additional casinos in Canada and Europe. Now an internationally respected gaming consultant, he has been recognized as an expert witness by courts in nine provinces, two U.S. states, and in Greece.

Display of Excellence Awards Casino - Class I Award (+601 slots) Glen Sawhill, Vice President Slot Operations, Casino Windsor A graduate of Stockton State College, Glen Sawhill's career began in 1984 at Caesars World AC. A Casino Windsor 'original' he oversaw the opening of Slot Departments at its temporary and per- manent casinos and at the Northern Belle Casino. He is today respected as one of Canada's most knowledgeable operators.

Bingo Volunteer Shirley Cripps, President, Federation of Alberta Bingo Associations A former Member of the Alberta Legislature and Cabinet, Shirley Cripps is a farmer, teacher, community activist, and volunteer. Described as the glue that holds the Federation of Alberta Bingo Associations together, she today dedicates her talents and energy to assisting Alberta bingo associations raise money for their charitable community programmes.

Casino - Class N Award (-600 slots) Brian Lynch, Vice President Casino Operations, British Columbia Lottery Corporation '1i A solid and consistent performer, Brian Lynch has earned peer respect and support for his work in I Saskatchewan and British Columbia. Having accepted to play a senior role in Canada's most chal- lenging gaming market he has, during the past two years, guided BCLC in the opening of four new properties and in the ongoing operation of 13 casinos.

Supplier Bill Hennessey, Vice President, Hi-Tech Gaming An Atlantic Lottery Corporation alumnus who drew praise for the implementation of its VLT pro- gramme, and a consummate professional, Bill Hennessey's personal, hands-on approach to sales has won him consistent praise and support from his customers. Bill's leadership and mentoring of colleagues has made him a major contributor to Hi-Tech's rapid growth. -Page 10 Canadian GAMING News -

6725 Millcreek Drive, Unit 2, Mississauga, Ontario, L5N 5V3 CUMMINS Tel: (905) 814-6184 1-800-499-6191 Fax: (905) 814-6182 Montreal Calgary Vancouver Halifax CUMMINS-ALLISON INC. www.cumminsallison.ca -Canadian GAMING News Page 11 -

T a hotel it will do so by public tender. McPhillips Street No timeframe has been given for Great Canadian Station casino this. Gaming Corp The Manitoba Lotteries Corpora- New games to be tion is making modifications at its McPhillips Street Station Casino unveiled at which could also see it add a hotel to this site. McPhillips is located Summit within the city of Winnipeg. TOTALUP (booth 400)' a table Beginning this spring MLC will make game designer from Thornhill, ON changes to McPhillips7main entrance will unveil a new system which will make it easier for tour which can be played by up to 12 buses to drop off and pick up passen- players. This system combines fea- gers. tures of table and machine games using a table layout and a Random Howard Blank In January 2002 MLC also signed a Output Generator ROG. Howard Blank has been appointed long-term lease with Canadian Pacific Atronic and its Canadian distribu- Director, Media and Public Rela- Railway to redevelop 22.5 acres of tions. In this capacity he will be land adjacent to, and along the west tor, Royal Flush Gaming (booth 300) will debut its Towerline game responsible for all public relations side of the casino. This additional duties as well as being spokesper- land will be used to improve general Sphinx Magic and a number of new Cashline games. son for both Great Canadian traffic flow at the property where Casino Company and its parent, some parking is inconveniently lo- Sphinx Magic, Atronic's first Tow- Great Canadian Gaming Corpora- cated across the street from the erline product, features a multi-level tion. casino. While the 'across-the-street' progressive and interactive Magic parking will remain, the additional Bonus Card feature. Royal Flush 1,700 parking spaces to be provided will also show a selection of new collect draw results via a secure Inter- on the CNR parcel will give employ- Cashine games in addition to al- net connection, thereby eliminating ees improved parking as well as pro- ready approved games such as At- the risks associated with the manual vide additional and more convenient lantica, IC Cash, and Dream Maker. transcription of results. parking for patrons. He has not yet released details of his In December 2000 Club Regent new game though Len Libin (booth Dion agreement with Casino Hotel opened at Club Regent 705), the much-respected owner and Triple Five Casino, the second casino which President of Vancouver's Grand MLC owns and operates in that city. Casino will also demonstrate a new, Dion Entertainment has signed an agreement with North Southern In- This 146-room hotel, while co- seven-position table game which he located with the casino and joined to has created. vestments Ltd, (NS) wholly-owned it by a walkway, is owned by the by Triple Five Group, whereby NS private sector and not MLC. Rooms Nter Technologies 'will take an active role in the affairs begin at $99 / night. of the company in an advisory capac- wins contract ity commencing immediately'. We MLC does not exercise control over have been told by Dion this means that the hotel's price structure though the Nter Technologies, headed by Si- while Dion will continue to have its two do coordinate their marketing ini- mon Brodeur and a subsidiary of own management team, many of its tiatives. Loto-Quebec, announced February decisions will be made in consultation 17, 2003 that it has reached an On December 19,2002 MLC issued a with NS. agreement with Switzerland's Lo- Request for Proposals (RFP) for con- terie Romande whereby it's Banco Dion presently owns and operates five sulting services to analyze the local Jass Lottery draws will be done bingo halls in the City of Regina as market and the need for a privately- well as one hall on the St. Mary's owned hotel attached to McPhillips electronically using NterDraw soft- ware. The software includes a vali- First Nation reserve in New Street Station Casino. We understand dation protocol guaranteeing total Brunswick. the consultant review, which is now complete, also examined possible de- security, reliability and integrity for North Southern and Triple Five Group its draw process. sign concepts and will provide guid- are real estate developers with Triple ance on a possible casino-hotel oper- Loterie Romande will broadcast its Five owning the West Edmonton ating agreement. lottery results on TV using animated Mall and the Mall of America in banners produced automatically by Minneapolis. Since neither has bingo Should MLC decide to proceed with NterMedia Solution. The latter will experience, why has Dion entered into -Page 12 Canadian GAMING News - The conference was not held and showroom. The casino is working Dion was left owing the Venetian with city officials to prepare the nec- Most Improved for the rooms. When Dion did not essary submissions. Job Satisfaction! pay, the Venetian took legal action Once zoning approval is received to recover its money. If we had known this earlier we from the City of Edmonton, most would have asked Casino Nia- We gather that Triple Five has a likely this summer, construction will gara's HR people to tell us how relationship with the Venetian and also begin on a new, $30 million Bac- that the Venetian, in an effort to carat Casino. The new Baccarat, to they achieved this significant ac- complishment by way of a work- regain its money, arranged for the be built on what is now the parking lot shop at the conference. Triple Five subsidiary to take over of the present Baccarat, will have the direction of Dion. about 100,000 sq. ft and be more than The achievement? HR Solutions twice the size of the present casino. Inc., a Chicago-based manage- In November Leo Dion, Dion's Chief Executive Officer, resigned. Responding to a request from the ment consulting firm that special- No replacement was named and AGLC, Edmonton has said that it sup- izes in Employee and Customer Dion went for some time without a ports this initiative. Even though the Satisfaction Surveys announced Chief Executive which concerned casino to be replaced and tom down February 10 that Casino Niagara already has zoning approval, this ap- has won its 2002 Most Improved the Toronto Stock Exchange which lists Dion's shares. (Dion's proval is site specific with the new Overall Job Satisfaction Award. shares currently trade at $0.04 a casino requiring its own zoning. HR Solutions regularly rates em- share, down form a one-time high of Both the Town of Red Deer and the ployee satisfaction levels for ma- $1 1). To satisfy TSE listing re- AGLC have approved Cash Casino's jor North American corporations quirements Louis Dion, Leo's plan to expand its casino there. by having employees answer con- brother, has been appointed Acting fidential questionnaires. Chief Executive. ABS Casinos, which owns Casino Calgary is also planning to build a HR Solutions Inc. then compared The company says it will be making new casino in the Town of Lethbridge Casino Niagara's employees sat- announcements of new initiatives in to replace the casino it opened there isfaction levels for 2000 with the the months to come. approximately 10 years ago. The old responses it received to a similar survey taken in 2002. It found building will be sold with the new Alberta Casino casino built on recently acquired land. that the increases in satisfaction levels at Casino Niagara were Relocations Trillium greater than those of any of the Five Alberta casino operators are in other 752 corporations which it the process of obtaining permission Foundation money surveyed. from the Alberta Gaming & When the Government of Ontario shut Perhaps indicative of actions Liquor Commission and their host down Ontario's Monte Carlo casino which may have contributed to communities to either build new operators, Ontario charities took a hit this result, Casino Niagara is casinos to replace old ones, or to as the Monte Carlo casinos had been a using the Canadian Gaming Sum- expand existing properties. major source of income for them. To mit & Exhibition as a staff develo- Great Northern Casino, in the compensate the charities for this lost ment tool and is sending more revenue, the government set aside people to the conference than any Town of Grande Prairie, is planning $100 million a year from its charity other single casino. to add 8,500 sq. ft of space to be used for additional gaming, banquet casinos as compensation. The money space, and a lounge. The expansion really comes from general gaming rev- an operating arrangement with them? will cost approximately $2 million enues though that's another story. The Dion spokesperson was not able with a June 1, 2003 target date for This money was then given to the to answer all our questions though, completion. Trillium Foundation, a government and as we understand, Dion and Las Casino Calgary, located within the agency, with the latter having a man- Vegas' Venetian Casino planned to City of Calgary, will add 25,000 sq. date to spread it across Ontario's char- organize and host Bingo Magic, an ft of space (its third expansion since ities. annual bingo trade show, at the Vene- opening in 1997). Plans are to take On March 5 Trillium announced that, tian in November 2001. This would the gaming floor from slightly less have placed Bingo Magic in competi- effective April 1, 2003, municipalities than 400 slots up to about 600 slots. with populations of 20,000 or less will tion with Bingo World which is also It will continue to offer 30 gaming held in Las Vegas each year. now also qualify for a portion of the tables plus poker. In addition to $ I00 million. This can only mean less As part of this arrangement Dion un- more gaming, the new space will be money for the charities which had it dertook to sell a large block of Vene- used for a new poker room and a all before. tian's rooms to conference attendees. Canadian GAMING News Page 13 -

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USA (t) +1 702 798 0500 (f) +I 702 798 0545

AUSTRALIA (t) +61 (0)2 931 9 1633 (f) +61 (0)2 9699 9638

MACAU (t) +853 663 1893 (f) +853 701 31 1

SOUTH AFRICA (t) +27 1 1 466 3344 (f) +27 11 466 3346

SPAIN (t) +34 95 286 3957 (f) +34 95 282 8643

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ITALY The Chipper Champ Plus'" has been (t) +39 01 1 908 5033 at the forefront of automatic chip (f) +39 01 1 908 5033 sorting technology for the last 20 years. Due to our ongoing commitment to R & D we now provide game performance data to include player tracking information, linking searnlessly to other TCS products as well as your existing casino systems. Page 14 Canadian GAMING News - -Canadian GAMING News Page 15 - in funding with additional money tion having reached a tentative based Royal Diamond Casino filed a available for arts, culture, sports and agreement whereby Great Canadian Writ of Summons with the Supreme recreation initiatives. will drop the lawsuit it brought Court of British Columbia which against BCLC. In the suit Great made a similar claim against BCLC. BCLC faces Canadian claimed that it was being The City of Vancouver, which like discriminated against in the award other municipalities in that province another lawsuit of slot machines. No announcement has a veto over slot machines within We wrote last month of the British has yet been made as to the contents its boundaries, has denied Royal Dia- Columbia Lottery Corporation and of the settlement. mond slot machines. This has placed Great Canadian Gaming Corpora- On February 6, 2003 Vancouver- it, though now closed by a labour Canadian Casino Revenue and Visitor Statistics

City Month Total Table Total Slot Gross $ Change Daily Change House Change tables change slots change million gross attend j attend $Win/ House previous previous month j previous previous Player $ Win/ month month month month Player Alberta 19 floors Dec 353 6,207 +245 64.9 +10.3 37,950 +9.680 55.16 -7.12 British Columbia 18 casinos Jan 387 3,266 +4 52.5 -1.1 34,017 -227 49.78 +2.22 Casino Halifax Halifax Jan 41 720 4.7 -0.4 2,871 598 48.04 +4.54 Casino Sydney Sydney Jan 11 3 78 1.6 -0.4 1,795 -418 28.86 -0.293 Casino de MontrCal Montreal Jan 127 3,080 +23 41.8 -0.9 17,932 -271 75.26 -0.38 Casino de Charlevoix Pte-au-Pic Jan 22 800 3.1 +0.4 1,694 -13 58.44 +7.47 Casino du Lac-Leamy Gatineau Jan 64 1,875 17.2 -1.6 8,998 ' -1,923 61.57 +6.17 Casino Windsor Windsor Dec 83 -6 3,309 +20 51.9 -0.9 14,505 -706 116.64 -0.65 Casino Rama Orillia Dec 122 2,271 +58 40.6 +3.6 12,255 +1,407 108.08 -4.36 Casino Niagara Niagara 1 Dee ( 141 1 +I 1 2,844 1 +7 1 51.5 / -2. I 1 19,030 1 -2,262 / 82.29 / -0.70 Falls 1 I Sault Ste. Marie Sault Ste Dee 18 451 3.3 -0.2 3,101 +357 36.85 -0.81 Marie Casino j Brantford Casino Brantford Dec 58 +8 452 9.2 1 -0.9 4,720 1 +403 63.32 da I I Point Edward Casino Point Dec 36 452 I -0.4 2.729 1 -252 76.47 +1.28 Edward 1 Zreat Blue Heron Casino Port Perry Dec 50 452 7.8 +O.O n/a n/a da n/a (slot operations only) Thunder Bay Casino Thunder B Dec 16 452 4.7 +0.1 2,859 -77 52.03 +1.61 Thousand Islands Gmmoque Dec 18 453 +I 5.2 / 2,416 / 70.48 Club Regent Casino Winnipeg Oct 31 1, 166 8.6 +0.6 da da n/a n/a

McPhillips Street Winnipeg Oct 26 1,143 8.4 +0.7 da ' n/a n/a da Station Casino Saskatchewan Indian N.,Banleford/ Sep 41 620 7.3 1 +0.4 6,000 1 n/a 40.38 n/a Gaming Authority Pry$zd Carlyle I Regina/Moose Jaw Regina/M.J Jan 44 870 1 6.6 -0.5 1 5.846 1 -592 1 36.46 1 -1.43 1

Note: For casinos where information is more than one month old, this is the most recent information available. -Page 16 Canadian GAMING News - dispute, at a significant disadvantage above its present total of 3,262. While the original announcement in- to casinos in adjoining communities Such a strategy would be of signifi- cluded a 12,000-seat amphitheatre to which have slot machines. cant benefit to such casinos as be built off-site, we hear this is now Of additional concern to Royal Dia- Gateway's Burnaby casino and the subject of discussion amongst the mond, we suspect, is the fact that, Great Canadian's Coquitlam Ontario Lottery & Gaming Corpo- while the B.C. Cabinet designated it casino though it would reduce pres- ration, Falls Management, and City of as one of four casinos which would be sure on BCLC to find a new home Niagara Falls community stakehold- allowed to relocate to communities for the Royal Dimond casino. Such ers. which accept slots, BCLC, which is a development would leave it little And what will happen to the present responsible for obtaining community hope of ever being able to compete Casino Niagara? We are told that the support, appears to be running out of with neighbouring casinos. OLGC has asked KPMG to do a mar- willing sites. ket analysis which will be presented to Only the Town of Langley, and possi- First Nation the OLGC Board of Directors. The bly the City of Surrey, appear to have board will then make a recommenda- an interest in casinos with slots. How- casino review tion to its minister, the Honourable ever, both we understand, are tying We wrote last month that Manitoba Norm Sterling. An announcement is their casino approvals to other facili- Premier Gary Doer and Grand expected by the summer. ties which could make the casinos Chief Dennis White Bird, leader of And what do we hear? We hear that uneconomical. the Assembly of Manitoba Chiefs, the top floor of the present casino may A story in a Surrey newspaper re- had announced a two-person com- be kept open, which would give it a cently referred to BCLC changing its mittee to review the failure of that smaller gaming floor, with the lower slot allocation strategy. We could not province's First Nation casino pol- levels of the building converted to get confirmation of this from the icy. It is to also make recornrnenda- other uses. Falls Management (a.k.a Gaming Policy & Enforcement tions on the best way to rejeuvenate Hyatt) would operate both casinos. Branch, though other sources tell us this initiative. that, February 5 BCLC unveilled a We now know the names of the two NAGRA to meet in strategy whereby it will place less committee members. The commit- emphasis upon finding new casino tee will be composed of Phil Do- Winnipeg sites, and give more emphasis to plac- rion, President & C.E.O., the Ase- Dale Fuga, President of the North ing more slots in the Vancouver-area neskak Casino and Rick Josephson, casinos which already have them. Chief Executive Officer, Manitoba American Gaming Regulators Asso- ciation and Chief Operating Officer, Gaming Control Commission. We understand that BCLC is planning Manitoba Gaming Control Commis- to eventually have 5,400 slots in B.C. The committee is drafting terms of sion has announced that NAGRA's casinos. This would be 2,138 slots reference which are expected to re- spring meeting will be held in Win- ceive government approval by mid- nipeg, May 4-7, 2003. While the March. It is anticipated that an agenda has yet to be finalized, we Canadian Gaming interim report will be given to the understand some of the topics to be government at the end of April with discussed include: CharitableGaming, NewsTM the committee's final report ready Indian Gaming, Patron Disputes, and is published monthly by the end of June. There is no Registering Individuals. word as to whether this report will To Subscribe be made public. William Jenkins Jr., Director of the U.S. General Accounting Ofice will Tel: (905) 855-5370 be a key note speaker. Fax: (905) 855-1869 Niagara pours In addition to Mr. Fuga, prominent [email protected] last bucket Canadians active in NAGRA include: Editor: Ivan Sack On February 22 the final bucket of Dennis Kerr, Nova Scotia Alcohol & cement was poured at the new $850 Gaming Authority (Canadian Re- Address: million Casino Niagara. When it gional Director); Simone Syrenne, 1690 Truscott Drive opens in April 2004 it will have Manitoba Gaming Control Commis- 3,000 slot machines, 150 table sion (Co-Chair, Charitable Gaming Mississauga ON L5J 126 games, 368-room Hyatt Hotel, Committee), Bill Dexter, Manitoba Canada 50,000 sq ft of convention space, a Gaming Control Commission (Co- ISSN # 1203-1623 1,500-seat theatre, retail and health Chair, Investigators Committee). spa. The reproduction of this publication, or the information contained herein, is prohibited