News release

New Lottery to be Based in Halifax, Cape Breton

The Nova Scotia Gaming Corp. today announced that the province's new lottery business will be operated from offices in the regional municipalities of Cape Breton and Halifax.

"We've considered the possible business structures and have determined that operations in both Cape Breton and Halifax will create a diverse and successful lottery," said Dara Gordon, vice-chair of the gaming corporation. "Having two strategically located offices enables the corporation to respond quickly and efficiently to its customers across the province.

"Both Cape Breton and Halifax are good locations for the new Nova Scotia lottery," said Ms. Gordon. "They provide ready access to the communications infrastructure required to operate a successful lottery. And both centres have a well-trained and skilled workforce."

Headquarters for all of the gaming corporation's operations -- including casinos, lotteries and harness racing -- will remain in metro Halifax. About 50 people will work out of this office as finance and administration functions are strengthened.

The Cape Breton location will serve as the operational office and service the 2,000 retailers in the province who sell lottery tickets or operate video lottery terminals. The office will employ about 70 people. An additional 60 field staff will service customers from regional offices in Halifax and Cape Breton.

"We expect to request proposals shortly for space in the Cape Breton Regional Municipality and anticipate the fit-up of the new office space to begin in August," said Ms. Gordon. "The transition to the new provincial lottery is challenging and there is still much work to be done. However, the lottery project is on schedule and the corporation will begin staffing a variety of positions in the coming months."

The new Nova Scotia lottery will create about 110 new jobs in the province. Seventy of these will be in Cape Breton and 40 in Halifax. By March 31, 2000, the gaming corporation is expecting to employ about 180 people -- including the 12 current corporation staff and the existing 60 Atlantic Lottery Corp. employees based in Nova Scotia.

The new offices will officially open on Nov. 30, 1999, when video lottery operations are transferred from Atlantic Lottery Corp. to the province. On March 31, 2000, the gaming corporation will assume the sale of lottery tickets.

On March 29, 1999, the Nova Scotia Gaming Corp. announced its intention to withdraw from the Atlantic Lottery Corp. in the absence of a new profit-sharing formula. Under the current formula, Nova Scotia is being shortchanged about $4.5 million in profits each year.

The Nova Scotia Gaming Corp. is a Crown corporation responsible for the control and management of gaming in the province. Its operations include lotteries, casinos and harness racing.

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Contact:

Julia Watt
N.S. Gaming Corp. 902-424-2203 E-mail:

EDITOR'S NOTE: Dara Gordon, vice-chair of the Nova Scotia Gaming Corp., will be available for media questions from 11 a.m. to 1 p.m. on June 16. Interviews can be arranged by contacting Julia Watt, gaming corporation communications manager at 902-424-2203.

arc                      June 16, 1999                9:30 a.m.