Great Canadian Gaming Corporation
TSX : GCD

Great Canadian Gaming Corporation

October 03, 2005 03:00 ET

Great Canadian Announces Closing of Georgian Downs Acquisition

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Oct. 3, 2005) -

Update on Flamboro Downs Acquisition

Great Canadian Gaming Corporation (the "Company") (TSX:GCD) is pleased to announce that it has received the approval of both the Alcohol and Gaming Commission of Ontario (the "AGCO") and the Ontario Racing Commission (the "ORC") to complete the acquisition of all of the shares of Georgian Downs Holdings Inc. and Georgian Downs Limited (collectively "Georgian Downs"). The Ontario Lottery and Gaming Corporation (the "OLGC") has also consented to the change in control of Georgian Downs as required under the Georgian Downs Siteholder Agreement with the OLGC.

The closing of the transaction follows the June 30, 2005 transfer of the shares of Georgian Downs to a bare trustee, Great Canadian Gaming (Ontario) Ltd. (the "Bare Trustee"), to hold for the benefit of the Company until such time as required registration and background investigations could be completed by the AGCO and the ORC. Now that all required approvals have been received, the shares of Georgian Downs will be transferred from the Bare Trustee to the Company effective September 30, 2005. The purchase price was approximately $48.1M.

Georgian Downs is located in Innisfil, Ontario. The facility offers live standardbred horseracing two days a week throughout the year and simulcast wagering 364 days a year. Georgian Downs' 401 slot machines, which are owned and operated by the OLGC, have the second highest average win per day in Ontario.

Update on Flamboro Downs Acquisition

As previously announced on August 16th, 2005, the Company entered into a share purchase agreement providing for the acquisition of all of the outstanding shares of Flamboro Downs Holdings Limited, a wholly owned subsidiary of Magna Entertainment Corporation. Both the OLGC and the AGCO have provided their required consents. In order to complete the acquisition, the Company is currently awaiting the approval of the ORC, and confirmation of certain discharges of encumbrances affecting the properties being acquired. The Company anticipates receiving both the approval and the confirmation by October 31, 2005.

Flamboro Downs occupies approximately 230 acres in Flamborough, Ontario. Offering year-round live standardbred racing five days a week and daily simulcast wagering on-track and at 4 teletheatres/off-track betting locations, Flamboro Downs boasts the third highest revenues among racetracks in the province of Ontario. The facility also features a complement of 752 slot machines owned and operated by the OLGC.

About Great Canadian Gaming Corporation

Great Canadian, home to approximately 5,000 employees, is a multi-jurisdictional gaming and entertainment operator with facilities in British Columbia, Nova Scotia, Ontario and Washington State. Great Canadian operates casinos, thoroughbred and standardbred racecourses, a community gaming centre and various food and beverage and entertainment facilities.

ON BEHALF OF GREAT CANADIAN GAMING CORPORATION

Thomas Bell, Vice President, Corporate Development and Investor Relations

Contact Information

  • Great Canadian Gaming Corporation
    Thomas Bell
    Corporate Contact
    (604) 303-1000
    (604) 279-8605 (FAX)
    or
    Great Canadian Gaming Corporation
    Howard Blank
    Media Contact
    (604) 512-6066
    (604) 279-8605 (FAX)
    www.gcgaming.com