Great Canadian Gaming Corporation
TSX : GCD

Great Canadian Gaming Corporation

June 01, 2005 06:30 ET

Great Canadian Gaming Corporation: Completes Acquisition of Metropolitan Entertainment Group

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - June 1, 2005) - Great Canadian Gaming Corporation (the "Company") (TSX:GCD) is pleased to announce that it has completed the acquisition of 100% of the partnership interests of Metropolitan Entertainment Group ("MEG"), a Nova Scotia Partnership which owns Casino Nova Scotia Halifax and Casino Nova Scotia Sydney, both operated pursuant to an operating agreement with the Nova Scotia Gaming Corporation ("NSGC").

Pursuant to a Partnership Acquisition Agreement dated May 16, 2005 among 6364951 Canada Inc., a wholly owned subsidiary of the Company, and Park Place Entertainment Scotia Limited ("PPESL"), a wholly owned subsidiary of Caesars Entertainment, Inc., the Company purchased 95% of the MEG partnership for $70 million US Dollars. Pursuant to a Partnership Acquisition Agreement dated May 16, 2005 between 6364942 Canada Inc., also a wholly owned subsidiary of the Company, and East Port Properties Limited, a Nova Scotia corporation, the Company purchased the remaining 5% interest in the MEG partnership (the "East Port Purchase"). The consideration for the East Port Purchase was approximately $4.7 million CDN Dollars. The Company will continue to operate Casino Nova Scotia Sydney and Casino Nova Scotia Halifax under the MEG partnership.

About Casino Nova Scotia Halifax and Casino Nova Scotia Sydney

Casino Nova Scotia Halifax is a full-service gaming facility featuring over 750 slot machines and 41 table games. Amenities include three licensed restaurants, a conference facility, high limit gaming area and is adjacent to several hotels including the Casino Nova Scotia Hotel which will continue to be operated by PPESL.

Casino Nova Scotia Sydney is a full-service gaming facility within easy walking distance of all major downtown Sydney hotels. The facility features 387 slot machines and 11 table games. The facility features two licensed restaurants and a high limit gaming area.

Both the Halifax and Sydney Casinos are operated pursuant to an Operating Agreement between MEG and NSGC. NSGC is a Crown corporation governed by the Gaming Control Act (Nova Scotia). The NSGC is responsible for the conduct and management of gaming in the Province of Nova Scotia. Under the Operating Agreement MEG is paid a fee for providing operational services for the NSGC at the Halifax and Sydney Casinos.

About Great Canadian Gaming Corporation

Great Canadian Gaming Corporation, home to more than 4,600 employees, is a multi-jurisdictional gaming and entertainment operator. In addition to the two casinos in Nova Scotia, within British Columbia, the Corporation operates six casinos, a thoroughbred racecourse, two standardbred racecourses, a community gaming centre, numerous licensed restaurants and a marina operation. In Washington State, through Great American Gaming Corporation, the Corporation operates four gaming and restaurant / entertainment facilities.

ON BEHALF OF GREAT CANADIAN GAMING CORPORATION

Thomas N. Bell, Vice President, Corporate Development and Investor Relations

Contact Information

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