Great Canadian Gaming Corporation
TSX : GC

Great Canadian Gaming Corporation

September 27, 2007 17:34 ET

Great Canadian Gaming Corporation: Plans to Redevelop View Royal Casino Underway

VIEW ROYAL, BRITISH COLUMBIA--(Marketwire - Sept. 27, 2007) - Great Canadian Gaming Corporation (TSX:GC) (the "Company") announced today that it has commenced the formal planning phase for the redevelopment of the Great Canadian Casino located in View Royal, British Columbia. In anticipation of this redevelopment, the Company has entered into an agreement to acquire approximately 1.5 acres of commercial property immediately adjacent to the current casino location.

The View Royal Casino is located 20 minutes from downtown Victoria on Vancouver Island and currently has a floor area of approximately 32,000 square feet. The current gaming facility features 437 slot machines, 24 table games and ancillary food and beverage amenities. For the twelve month period ended June 30, 2007, the View Royal Casino generated revenues before promotional allowances of $26.7 million and EBITDA of $14.7 million. For the three month period ended June 30, 2007, the slot machine win per unit per day was $460, a level of performance well in excess of the British Columbia industry average.

The financial performance of the existing gaming facility demonstrates that customer demand is exceeding the available gaming supply. As such, the Company's redevelopment proposals include increasing the existing floor area by approximately 24,000 square feet to accommodate new gaming amenities, including slot machines, a poker room and teletheatre, where patrons can watch sporting events and wager on live horse racing. In addition, the Company is planning a significant expansion of the hospitality offerings at the property, including both new food and beverage options and a new entertainment lounge that will feature live entertainment. A key feature of the Company's plans is to increase the facility's parking capacity to accommodate an additional 380 cars.

The redevelopment of the View Royal Casino and any change to the gaming facility are subject to local government and British Columbia Lottery Corporation approvals. A development permit application has already been submitted to the View Royal planning department.

Ross J. McLeod, Great Canadian's Chairman and Chief Executive Officer, stated, "Great Canadian is pleased to be working with BCLC and the town of View Royal, in redeveloping this property. Based on property performance metrics, we believe the View Royal Casino does not meet the current demand for gaming that exists in this market. The redevelopment of the View Royal Casino will greatly improve the guest experience at the property through additional gaming and entertainment options as well as increased parking capacity. Importantly, the associated and anticipated increase in revenue will also provide a significant boost for the local communities that benefit from the BCLC's gaming revenue."

ABOUT GREAT CANADIAN

Great Canadian is a multi-jurisdictional gaming and entertainment operator with facilities in British Columbia, Ontario, Nova Scotia and Washington State. Great Canadian operates eleven casinos, a thoroughbred racetrack, four standardbred racetracks, a community gaming centre, a hotel, two show theatres, and various food and beverage facilities. Further information is available on the Company's website, www.gcgaming.com.

DISCLAIMER

This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. Such differences may be caused by factors which include, but are not limited to, ongoing requirements to comply with financial covenants associated with credit facilities, limited terms of operational service agreements with gaming regulators, pending and proposed legislative or regulatory developments, competition from established competitors and new entrants in the gaming business, dependence on key personnel, no assurance that systems, procedures and controls will be adequate to support expanding operations, potential undisclosed liabilities and capital expenditures associated with acquisitions, negative connotations linked to the gaming industry, First Nations claims with respect to public lands on which we conduct our operations, impact of legal proceedings, impact of smoking bans, interest and exchange rate fluctuations, non-realization of cost reductions and synergies, acceptance and demand for new products and services, fluctuations in operating results and general economic conditions. The Company cautions that this list of factors is not exhaustive. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, including in the "Risks Factors" section of the Company's Annual Information Form for fiscal 2006, or as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise.

ON BEHALF OF GREAT CANADIAN GAMING CORPORATION

Thomas Bell, Vice President, Corporate Development and Investor Relations

Contact Information

  • Great Canadian Gaming Corporation
    Mr. Thomas Bell
    Vice-President, Corporate Development & Investor Relations
    (604) 303-1033
    or
    Jaffoni & Collins Incorporated
    Mr. Richard Land or Mr. David Jacoby
    (212) 835-8500
    Email: GCD@jcir.com
    or
    Great Canadian Gaming Corporation
    Mr. Howard Blank
    Vice-President, Media & Entertainment
    (604) 512-6066
    Website: www.gcgaming.com