New operating agreements executed with British Columbia Lottery Corporation
June 5, 2018
Great Canadian Gaming Corporation is pleased to announce today that it has signed new operational services agreements with the British Columbia Lottery Corporation (BCLC), in respect of its gaming facilities in British Columbia. The Agreements are for terms of 20 years and include the provision for appropriate investments in the Company's properties as well as the delivery of annual business plans. "I want to thank the BCLC for working with Great Canadian and other service providers to update and enhance the industry's operational agreements that originated in the late 1990's. These agreements ensure alignment between the BCLC and Great Canadian on business planning and capital and operational investments, and with these agreements executed, Great Canadian now has long term operating contracts of 20 years or more for almost all of its Canadian properties," stated Rod Baker, President and CEO, Great Canadian Gaming Corporation.
Under the Agreements, operating commissions for regular limit table games will be 42.5 per cent and 77.5 per cent for poker. This is an increase from current commissions of 40 per cent and 75 per cent, respectively. For high limit table games in private rooms, the commissions will remain at 40 per cent, and the commissions for slot machines will remain at 25 per cent. For bingo games, commissions will be 90 per cent on the first $10,000 and 45 per cent above $10,000 on weekly bingo revenue after prizes paid. This is an increase from a former tiered commission structure of 60 per cent / 40 per cent / 25 per cent.
Service providers will no longer have their commissions reduced by .6 per cent of gaming revenues for BCLC marketing costs, or the reduction of 1 per cent of gross gaming revenue earned on all table games as reimbursement of table games' equipment.