News release

Gaming Corp. Wins $21 Million Arbitration

An arbitrator has ruled in the Nova Scotia Gaming Corp.'s favour on who should pay the harmonized sales tax related to casinos.

The point in question was whether the sales tax related to casino revenue is an operating expense. The arbitrator ruled that it is and that means the harmonized sales tax is to be paid out of casino revenues.

"We're very pleased with this decision," said Dara Gordon, vice chair of the Nova Scotia Gaming Corp. "We have always felt that our case was strong and correct. We've followed the process and now we have the right result.

"We have always accounted for the harmonized sales tax consistent with our interpretation so it has been included in our profit. Now we'll actually receive the $21 million in cash."

The arbitration was between the Nova Scotia Gaming Corp. and its casino operator, Metropolitan Entertainment Group.

The Nova Scotia Gaming Corp. is a Crown corporation responsible for the conduct and management of gaming businesses in the province to maximize net revenue to Nova Scotia in a responsible manner. Its operations include lotteries, casinos and harness racing.

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Contact:

Julia Watt
Nova Scotia Gaming Corp. 902-424-2203 E-mail:
amc                      January 18, 2000     9:48 am