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Building Partnerships in the BC Gaming Model
Presenter:
Max Dressler – CEO
ST. Eugene Golf Resort & Casino
St. Eugene Golf Resort Casino
St. Eugene Golf Resort Casino 7777 Mission Road
Cranbrook, BC www.steugene.ca
History
The Vision
St. Eugene Golf Course
• Designed by Les Furber
• Opened in May 2000
• 7007 yards
• Par 72
18 Hole Championship
St. Eugene Golf Course
St. Eugene Resort
• 125 Guest Rooms
• Full fitness centre with hot tubs, pool, dry sauna, steam room
• Ktunaxa Interpretive Centre
• Delta Hotels opened January 2003
Casino of the Rockies
• 234 slot stations including E-roulette
• 9 table games
• Poker Room, OTB
• Lottery sales & Redemption centre
• Opened September 21, 2002
Our Awards
• Canada Select 4 ½ stars
• AAA/CAA 3 diamonds
• 4 Green Keys – Hotel Association Canada
• 3 Green Leaves – Audubon Society
The Owners
• Tripartite ownership group
Chippewas of Rama First Nation – Ontario
Samson Cree First Nation – Alberta
Ktnuaxa Nation Council – British Columbia
St. Eugene – The Operation
The Operation - Demographics
• Casino market
– 80% local player
– 61% female
– 27% age 60-69
• Hotel
– B.C. / Alberta business traveller
• Golf
– Primary Alberta followed by local market
• Dining – local followed by in-house
The Operation - Strengths
• Property Strengths
– Beauty in location
– High quality of property
– Casino of the Rockies
– Food & Beverage
– The Owners
– Our partnerships – BCLC
The Operation - Challenges
• Remoteness of property
• The Market
– Primary market < 60,000
• Competition
– Golf
– Resorts – Panorama, Fernie, Kimberley
• Our property
– Inability to host large events
Our Partner – the BCLC
• 1997: Province issued RFP for gaming /resort destinations
Key: entertainment options to domestic and tourism markets
Approval in principle granted for current site
September 2002: Casino of the Rockies opens
Critical to the property was the partnership with the BCLC
Our Partner – The BCLC
• British Columbia Lottery Corp
– Conducts & manages gaming in BC
– Enters into service/revenue sharing agreements with operators (Casino Operational Services Agreements)
– Owns the slot machines and some of the gaming equipment
– Issues policies and directives
Our Partner – The BCLC
• Revenue Sharing Model
• Service Providers Receive
– 25% of EGD revenue
– 40% of table games revenue
– 75% of poker revenue
• Four other key programs exist . . .
Our Partner – The BCLC
• Development Assistance Compensation (DAC)
• Host Local Government (HLG) Compensation
• Facility Development Compensation (FDC)
• Accelerated Facility Development Compensation (AFDC)
Our Partner – The BCLC
• DAC
– Struck in 1999, since amended
– Four signatories – Province, Proponent, Host and BCLC
– Goal: to encourage local economic development related the destination casino facility
– For approved projects contiguous to casino
– Province contributes up to 1/6 of Net Gaming Income to Proponent
Our Partner – The BCLC
• HLG
– First Nations rightly acknowledged as Host Local Government under agreement
– Signatory to DAC Agreement by reason of a destination casino being approved /constructed
– Province contributes up to 1/6 of Net Gaming Income to HLG
– Programming enhances economic benefits to HLG
– BCLC to key to successful execution / outcome
Our Partner – The BCLC
• FDC
– Open to all casino Service Providers
– Applies to BCLC approved projects for the development or improvement of casinos
– Can earn additional consideration equal to 3% of the Win
– May draw on FDC in amount equal to incurred /paid expenditures
– Extremely important to St. Eugene
Our Partner – The BCLC
• AFDC
– Created to enhance the economic model for redevelopment of casino properties by SP’s
– To facilitate timely redevelopment of casinos and entertainment amenities
– Similar conditions to FDC
– A one-time initiative only
– In addition to FDC at a rate of 2% of Win
Our Partner – The BCLC
• Our BCLC partnership is extremely valuable
– Floor refresh initiatives
– New Product
– Responsible Gaming
• Game Sense
– Free flow of communication / problem solving
– Assisting our property to flourish and grow
– Creating wealth and value for our owners
The Future
The Future
Concluding Remarks
