Gaming Corp. Reports Increase in Net Income
The Nova Scotia Gaming Corp. is reporting net income of $35 million for the second quarter, which ended Sept. 30, 1999. This is up $2.3 million from the same quarter last year.
Profits from ticket lotteries for the quarter remained relatively unchanged at $9.8 million. Video lottery profits are $25.4 million, up $3.4 million over the same time period. A portion of video lottery profits was used to help develop the VLT Retailer Responsible Gaming Program, a highlight of the corporation's activity in the second quarter.
"In September, the gaming corporation had the opportunity to internationally profile Nova Scotia's VLT Retailer Responsible Gaming Program, a partnership with TIANS and the Department of Health," said Dara Gordon, vice chair of the gaming corporation. "The program received industry interest through presentations made at the World Gaming Congress in Las Vegas and at the annual meeting of North American State and Provincial Lotteries in Halifax."
Total casino profits for the quarter are $5.6 million, up $1.4 million from the same period in 1998. Profits from the Halifax casino for the quarter were $4.1 million, up $0.9 million over last year's second quarter. The Sydney casino recorded profits of $1.5 million for the quarter, up $500,000.
As a term of the casino operating contract, an income guarantee was put in place to ensure the gaming corporation received a minimum of $25 million each year for the first four years of casino operations. Since inception, Metropolitan Entertainment Group had to pay the gaming corporation $20.9 million to ensure $25 million in revenues annually. Under that same income guarantee provision, the Metropolitan Entertainment Group can recover this payment if NSGC's casino revenue exceeds $25 million. As a result, casino profits were reduced by $4.3 million during the second quarter.
Overall profits were reduced by the gaming corporation's contribution of $867,138 to ALC Harness Racing Corp. to cover operating costs of Nova Scotia racetracks. This contribution exceeded what was expected. Consequently, the harness racing corporation will conduct an independent review of its involvement in the Maritime harness racing industry.
The Nova Scotia Gaming Corp. is a Crown corporation responsible for the conduct and management of gaming in the province to maximize net revenue to Nova Scotia in a responsible manner. Its operations include lotteries, casinos and harness racing.
kjd December 8, 1999 9:36 a.m.