Annual Report Released

Nova Scotia Gaming Corporation reported net income of $127.6 million for the year ended March 31, 1998. This represents a seven per cent increase over the $119.2 million generated a year before.

The major source of revenue for the corporation comes from the Atlantic Lottery Corporation (ALC). Revenues this year were $302 million compared to $278 million last year.

ALC generated profit of $119.3 million for the year, compared with $109.9 million last year. This includes regular lottery and video lottery programs. Profit from the video lottery program increased from $68.8 million to $80.4 million.

Casino revenues are up this year in both Halifax and Sydney, increasing from $71 million last year to $74 million this year. The Halifax casino generated gaming revenue before taxes of $48.2 million, compared with $46.3 million in 1997. Revenue before taxes in Sydney moved from $24.7 million to $25.8 million.

ITT Sheraton has guaranteed the corporation a minimum of $100 million over four years for the casinos. In 1997-98, the casino operator had to top up revenues by $5.5 million to achieve the $25-million annual guarantee.

Work on the new $100-million Halifax casino started on February 1, 1998, and is progressing on time and on budget. Completion is slated for September 1999. The construction project is expected to generate 240 full-time construction jobs and 340 spinoff jobs. Upon completion, the new casino will employ about 785 workers --almost 350 more than the current operation.

This year, the casinos paid $1 million to the Department of Health for research, education and treatment of problem gaming. In addition, video lottery retailers and the Nova Scotia Gaming Corporation contributed $719,940 to the Nova Scotia Gaming Foundation - established to fund programs or projects in problem gaming research, prevention and education.

This year also marked the gaming corporation's involvement in harness racing. In May 1998, Nova Scotia Gaming Corporation and the Atlantic Lottery Corporation approved a three-year business plan for revitalizing the industry and authorized an investment of approximately $1.7 million in harness racing in Nova Scotia for the first year. The head office for harness racing is located in Truro and is expected to employ seven people.

Dara Gordon, vice-chair of the corporation said: "With the construction of the $100-million casino underway, we expect the corporate priorities for 1998-99 to shift to the business operated by ALC, including the ongoing negotiations of amendments to the profit distribution formula and the development of a VLT strategic plan to incorporate new technology in a socially responsible manner with due regard to problem gaming."

NOTE TO EDITORS: Copies of the annual report are available at the corporation's office at Suite 800, 5151 George Street, Bank of Montreal Building, 902-424-2203, and at the Government Bookstore, 1700 Granville Street, Halifax, 1-800-526-6575 or 902-424-7580.