SlideShare a Scribd company logo
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
                18 Hole Championship

           •   Designed by Les Furber
           •   Opened in May 2000
           •   7007 yards
           •   Par 72
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

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Fng1 canadian-gaming-summit-110412-final

  • 1. Building Partnerships in the BC Gaming Model Presenter: Max Dressler – CEO ST. Eugene Golf Resort & Casino
  • 2. St. Eugene Golf Resort Casino
  • 3. St. Eugene Golf Resort Casino 7777 Mission Road Cranbrook, BC www.steugene.ca
  • 6. St. Eugene Golf Course 18 Hole Championship • Designed by Les Furber • Opened in May 2000 • 7007 yards • Par 72
  • 8. 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
  • 9. Casino of the Rockies • 234 slot stations including E-roulette • 9 table games • Poker Room, OTB • Lottery sales & Redemption centre • Opened September 21, 2002
  • 10. Our Awards • Canada Select 4 ½ stars • AAA/CAA 3 diamonds • 4 Green Keys – Hotel Association Canada • 3 Green Leaves – Audubon Society
  • 11. The Owners • Tripartite ownership group  Chippewas of Rama First Nation – Ontario  Samson Cree First Nation – Alberta  Ktnuaxa Nation Council – British Columbia
  • 12. St. Eugene – The Operation
  • 13. 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
  • 14. The Operation - Strengths • Property Strengths – Beauty in location – High quality of property – Casino of the Rockies – Food & Beverage – The Owners – Our partnerships – BCLC
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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 . . .
  • 19. Our Partner – The BCLC • Development Assistance Compensation (DAC) • Host Local Government (HLG) Compensation • Facility Development Compensation (FDC) • Accelerated Facility Development Compensation (AFDC)
  • 20. 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
  • 21. 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
  • 22. 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
  • 23. 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
  • 24. 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