Great Canadian Gaming Corporation

Great Canadian Gaming Corporation

March 21, 2005 07:00 ET

Great Canadian Gaming Corporation Completes Acquisition of Orangeville Raceway Limited


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GREAT CANADIAN GAMING CORPORATION

TSX SYMBOL: GCD

MARCH 21, 2005 - 07:00 ET

Great Canadian Gaming Corporation Completes
Acquisition of Orangeville Raceway Limited

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - March 21, 2005) - Great
Canadian Gaming Corporation (the "Corporation") (TSX:GCD) is pleased to
announce that it has completed the acquisition of all of the issued and
outstanding shares of Orangeville Raceway Limited ("Orangeville"), which
operates two standardbred racing facilities in British Columbia: Fraser
Downs Racetrack & Casino in Surrey and Sandown Park in North Saanich on
Vancouver Island.

Pursuant to the purchase agreement, consideration paid by the
Corporation for the shares of Orangeville was C$40,000,000, plus the
assumption of certain shareholder loans of approximately C$2.5 million
(the "Purchase Price"). In addition, the Corporation agreed to trailer
payments for a period of up to four years following the closing date
based on exceeding the present annual net gaming and racing revenues of
the acquired operations. Included in the purchase price is a Facility
Development Improvement Fund ("FDIF") receivable of approximately C$15
million that will be repaid to the Corporation by the British Columbia
Lottery Corporation over time. The acquisition of Orangeville will allow
the Corporation to pursue various synergies and complements the
Corporation's recent acquisition of Hastings Racecourse in Vancouver. As
a result of these acquisitions, the Corporation will be the largest
thoroughbred and standardbred racing operator in British Columbia and
will be able to operate year round horse racing and related activities.

About Fraser Downs Racetrack & Casino

Fraser Downs Racetrack & Casino currently offers live standardbred horse
racing nine months of the year. The casino currently operates 365 days a
year and features a sports bar and 420 state-of-the-art gaming machines
including Touch Bet Roulette, Electronic Blackjack and interactive slot
machines.

Fraser Downs commenced a C$30 million expansion in fall 2003 that
introduced 200 slots in temporary facilities in April 2004. In November
2004 the permanent slot facility was completed featuring 400 slots and
20 electronic gaming positions. The final phase scheduled for completion
in Q2 2005 will include a gaming floor with 420 gaming machines, a new
simulcast area, modern atrium-styled welcome center and a major show
lounge with state-of-the-art audio-visual technology.

Surrey is British Columbia's second largest city and is one of the
fastest growing major cities in Canada and with two major Canada/United
States border access points. Great Canadian previously operated a casino
facility in Surrey for over 15 years and is excited about the
opportunity to return to one of the largest cities in British Columbia.
The Fraser Downs facility has seen increased traffic and visibility with
the opening of the second phase of the casino floor in November 2004.

About Sandown Park

Sandown Park is the only live horse racing facility on Vancouver Island
and has operated for approximately 50 years. This facility is located
within the District of North Saanich which is within the Capital
Regional District of Victoria and within five minutes of the BC Ferry
Terminal and Victoria International Airport. Sandown operates
approximately twenty live race days per year and features simulcast
off-track wagering Wednesday through Sunday all year round. In November
6, 2004 a referendum of North Saanich voters supported the installation
of up to 200 slot machines at Sandown, such installation being subject
to the standard development permit approval process.

About Great Canadian Gaming Corporation

Great Canadian Gaming Corporation, home to more than 3,500 employees, is
a multi-jurisdictional gaming and entertainment operator. Within British
Columbia, the company 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 company operates four
gaming and restaurant / entertainment facilities.

ON BEHALF OF GREAT CANADIAN GAMING CORPORATION

Thomas Bell, Executive Director, Corporate Development


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Contact Information

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