$174 Million Contributed to Government Programs and Services
N.S. GAMING CORP.--$174 Million Contributed to Government
Programs and Services
The Nova Scotia Gaming Corporation's 2000-01 annual report indicates that the corporation contributed $174 million to provincial government programs and services.
Of this amount, $155.5 million came through revenues generated by the lotteries and the casinos. Another $18.5 million came directly from the casinos in the form of win tax, a percentage of its overall revenue.
The Gaming Corporation reinvested in its assets during the year to provide better and more responsible gaming products. Some examples include: -- the opening of the permanent Halifax Casino; -- the announcement of a three-year VLT replacement plan; -- investment in new lottery retail terminals (LRTs); and -- the introduction of new ticket games like Wild 5, Set for Life and the limited edition of the Tall Ships break-open ticket.
The investment in LRTs will make it easier for retailers to validate and sell tickets and will accommodate the introduction of new games.
An amended unanimous shareholders agreement and a new agency agreement were successfully developed in 2000-01 with the Atlantic Lottery Corporation (ALC). This resulted in a new profit allocation formula, which provided approximately $5.5 million in increased profits to NSGC in 2000-01. Due to a more equitable distribution of expenses, an additional $5 million to $6 million will come to Nova Scotia each year.
The Gaming Corporation continued its commitment to responsible gaming. It contributed $1.7 million in 2000-01 towards problem gambling resources and programs. Compared to other Canadian provinces, Nova Scotia leads the way in contributions both on a per-capita and on a profit basis.
In addition, the Gaming Corporation continued its support of the delivery of the VLT Retailer Responsible Gaming Program. The program gives VLT retailers a greater awareness of problem gambling and provides information about available resources. Over 2,000 retailers and their staff have participated in the program since December 1999.
As well, with the Video Lottery Terminal (VLT) Replacement Plan announced last December, the Gaming Corporation incorporated four responsible gaming features into the new machines. Intended to help discourage excessive play, the new features include a clock, wagers in dollar amounts as opposed to credits, pop-up reminders during play at the 60- minute mark and at 30-minute intervals after that and mandatory cash-out after 150 minutes of play.
The Gaming Corporation also reported that the casino business line has performed well. The new Halifax Casino achieved strong growth in revenue although overall net income is lower due to interest expense on its construction costs, recognition of the depreciation expense on these assets and increased operating expenses associated with a larger facility.