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Great Canadian Gaming Announces First Quarter 2019 Results

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Great Canadian Gaming Corporation announced its financial results for the three month period ended March 31, 2019 (the “first quarter”).

 

FIRST QUARTER 2019 HIGHLIGHTS

  • Revenues of $312.1 million in the first quarter, an increase of 35% when compared to the same period in the prior year.
  • Adjusted EBITDA(1)(2)  of $111.6 million in the first quarter, which included a $20.8 million positive impact from IFRS 16 adoption. Adjusted EBITDA of $88.9 million in the same prior year period.
  • Shareholders’ net earnings(2) of $32.6 million or $0.55 per common share in the first quarter, which had a $2.2 million or $0.04 per common share negative impact from IFRS 16 adoption.  Shareholders’ net earnings of $29.2 million or $0.48 per common share in the same prior year period.
  • On April 24, 2019, Great Canadian announced that it has completed agreements with the Ontario Lottery and Gaming Corporation (“OLG”) and the owners of Ajax Downs racetrack to continue operations at Casino Ajax beyond the opening of the Company’s new casino resort property currently under development in Pickering, Ontario.
  • On April 26, 2019, the Company announced an agreement to sell its subsidiary Great American Gaming Corporation (“Great American”) for proceeds of US$56.0 million.
  • On January 23, 2019, Great Blue Heron Casino opened its new building addition to expand the gaming floor, which introduced over 200 new slot machines and a new food and beverage option.
  • During the first quarter of 2019, Elements Casino Mohawk and Elements Casino Grand River added approximately 290 slot machines and 190 slot machines, respectively.
  • During the first quarter of 2019, the Company purchased for cancellation 136,810 common shares at a weighted average price of $48.49 per share. The Company has purchased a total of 3,582,462 common shares under the current normal course issuer bid which expires on July 2, 2019.

“With a successful 2018 behind us, the Company remains focused on the execution of its operational and development plans for 2019 and beyond,” stated Rod Baker, the Company’s Chief Executive Officer. “This includes the upcoming launch of the new world-class casino resort in Pickering, Ontario as well as several exciting facility and operational upgrades to our recently acquired properties in Ontario.  We also worked diligently with OLG to extend operations at Ajax Downs beyond the opening of Pickering, allowing this gaming and horse racing facility – that was previously expected to close – to continue making economic contributions to the community it serves. Despite the strong progress made to grow the business, our first quarter in 2019 experienced challenges from the extreme weather conditions, which negatively impacted guest visitation at our Ontario gaming facilities.”

______________________________

(1)

Adjusted EBITDA is a non-IFRS measure as described in the disclaimer section of this press release.

(2)

2019 financial results reflect the adoption of IFRS 16, Leases as described in the Financial Review section of this press release. Comparative information has not been adjusted for IFRS 16

FINANCIAL REVIEW

Revenues increased during the first quarter of 2019, when compared to the same period in the prior year, primarily attributable to a full quarter of operations from the West GTA Gaming Bundle, 22 additional operating days from the GTA Gaming Bundle, and new revenues from the introduction of table games at Woodbine. Revenues also increased from the East Gaming Bundle due to the additional revenues from Shorelines Casino Peterborough, which opened on October 15, 2018 and Shorelines Slots at Kawartha Downs, which re-opened under agreed terms on December 19, 2018.  These increases were partially offset by the previously mentioned extreme weather conditions in the first quarter of 2019.

Adjusted EBITDA increased during the first quarter, when compared to the same period in the prior year, mainly due to the accounting impact of IFRS 16, the new lease accounting standard adopted on January 1, 2019. Readers are cautioned that the financial results for the comparative period in 2018 have not been adjusted for IFRS 16.

Implementation of IFRS 16:

IFRS 16 specifies how to recognize, measure, present and disclose leases.  The standard provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all material leases.

The following are the key changes in the first quarter due to adoption of IFRS 16:

  • On January 1, 2019, the Company recognized right-of-use assets and lease liabilities of $996.0 million and $947.3 million, respectively.
  • Adjusted EBITDA was increased by $20.8 million due to certain lease payments, previously recognized as “property, marketing and administration” expense, being recorded against lease liabilities.
  • Amortization expense was increased by $14.2 due to amortization of right-of-use assets, and interest and financing costs, net, was increased by $12.4 due to interest accretion on lease liabilities.
  • Net earnings was decreased by $5.0 million and Shareholders’ Net earnings was decreased by $2.2 million.

See Great Canadian’s Condensed Interim Consolidated Financial Statements and Management’s Discussion & Analysis for the three months ended March 31, 2019 for further information.

OUTLOOK

“We continue to execute on our comprehensive development plans in the GTA and West GTA Gaming Bundles, with construction underway at several gaming facilities,” said Mr. Baker. “Development plans for the gaming facilities in these bundles will expand gaming offerings and introduce an exciting mix of hospitality and entertainment features at the properties that will deliver exceptional guest experiences within our respective markets.  Construction of the new world-class casino resort in the Durham region located in Pickering, Ontario is well underway.  Elements Casino Mohawk is expected to launch expanded gaming in the second quarter of 2019, and will feature approximately 1,500 slot machines and 60 table games once renovations are complete.”

“Great Canadian’s enhanced capital structure after its corporate refinancing in the fourth quarter of 2018 has given the Company additional financial flexibility to invest in our business as well as pursue other opportunities to enhance value. In the fourth quarter of 2018, we utilized $40.0 million of capacity on our revolving credit facility to repurchase shares under the normal course issuer bid which was fully repaid in the first quarter of 2019, demonstrating our disciplined approach to use of capital that has allowed us to maintain our strong financial position.  Great Canadian continues to make meaningful investments and explore opportunities that will drive its business forward and provide added value to our shareholders and guests, as evidenced by the recent divestiture of Great American,” concluded Mr. Baker.

CONFERENCE CALL

Great Canadian will host a conference call for investors and analysts today, May 6, 2019, at 8:00 AM Pacific Time in order to review the financial results for the quarter ended March 31, 2019. To participate in the conference call, please dial 416-764-8688, 778-383-7413, or toll free at 1-888-390-0546.  Questions will be reserved for analysts and institutional investors. Interested parties may also access the call via the Investor Relations section of the Company’s website, www.gcgaming.com.  Investors using the website should allow 15 minutes for the registration and installation of any necessary software. A replay of the call will also be available at www.gcgaming.com.

 

ABOUT GREAT CANADIAN GAMING CORPORATION:

Founded in 1982, Great Canadian Gaming Corporation is a BC based company that operates 28 gaming, entertainment and hospitality facilities in Ontario, British Columbia, New Brunswick, Nova Scotia, and Washington State. Fundamental to the Company’s culture is its commitment to social responsibility. “PROUD of our people, our business, our community” is Great Canadian’s brand that unifies the Company’s community, volunteering and social responsibility efforts. Under the PROUD program, Great Canadian annually supports hundreds of non-profits, community groups, and in 2018, Great Canadian team members spent over 15,000 hours volunteering for various charitable and community initiatives. In each Canadian gaming jurisdiction, a significant portion of gross gaming revenue from gaming facilities is retained by our Crown partners on behalf of their provincial government for the purpose of supporting programs like healthcare, education and social services.

Please refer to the Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis at www.gcgaming.com or www.sedar.com (available on May 6, 2019) for detailed financial information and analysis.

The financial results on the following page are unaudited and prepared by management. Expressed in millions of Canadian dollars, except for per share information.

 

Source: Great Canadian Gaming Corporation


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This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Great Canadian Gaming Announces First Quarter 2019 Results

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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CASINO REVOLUCIÓN WELCOMES CONCEPT AND NEW GAMES

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The prominent operator Golden Lion Entertainment Group is expanding its partnership with Zitro by introducing the new CONCEPT cabinet line and a wide variety of new games at the Casino Revolución in Monterrey.

CONCEPT stands out for its powerful Magic Lighting, which creates a stunning light show synchronized with the game, delivering an impressive visual experience. Additionally, the Screen Deck enhances the user experience, providing greater comfort and functionality for both players and operators.

This new addition also includes three exclusive games: Legendary Sword, Triple Charm Journey, and Fairyland Quest, all of which feature high-quality graphics, innovative mechanics, and rewarding prizes.

Golden Lion expressed: “We are extremely pleased with the addition of the CONCEPT line and its new games, as they elevate our entertainment offering and improve the experience we deliver to our customers.”

Johnny Viveiros Ortiz, founder of Zitro, also commented: “We are grateful to Golden Lion for continuing to choose Zitro products. CONCEPT has been designed to offer an unparalleled gaming experience, and we are confident it will be a big hit with players in Monterrey”.

 

The post CASINO REVOLUCIÓN WELCOMES CONCEPT AND NEW GAMES appeared first on European Gaming Industry News.

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Vaulta and Ultra Embark on Strategic Partnership to Power the Future of Gaming and Finance

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This symbiotic partnership is the next step in Ultra’s vision of building the Netflix of Gaming, and effectively positions Ultra as Vaulta’s gaming arm. 

Vaulta, a scalable operating system powering Web3 Banking with fast, low-cost transactions and seamless blockchain connectivity, today announces a strategic partnership with Ultra, the one-stop destination for gamers, publishers, and developers.

This financial and technical alliance positions Ultra as Vaulta’s gaming arm and marks the next phase of Ultra’s ambition to lead the gaming space.

Together, Vaulta and Ultra will accelerate the creation of a full-service platform where digital assets can be tokenized, traded, and monetized across games, all powered by a fast, low-cost, and interoperable infrastructure. In addition to tokenized assets, this platform will also support decentralized marketplaces, cross-game integrations, and metaverse banking. 

Gus van Rijckevorsel, CEO of Ultra, shared, “By 2030, the Web3 gaming market is expected to grow to $615 billion, outpacing both movies and TV exponentially and signaling a major shift in how consumers engage with their entertainment. To harness this potential, the gaming industry needs better infrastructure designed for publishers, developers, and gamers, and we’re here to deliver that. We’re laser-focused on creating the content and structural partnerships necessary to make Ultra THE gaming platform recognized by the gaming industry. Vaulta is a major brick on that path, and this partnership is a solid foundation on which we build the future of gaming and finance. And at the core of this lasting partnership is a mutual alignment on our long-term interests.” 

This partnership supports Vaulta’s mission to drive innovation in tokenization and real-world asset integration,” said Yves La Rose, founder and CEO of Vaulta Foundation. “Ultra’s advanced gaming platform paired with Vaulta’s financial and DeFi infrastructure will enable decentralized marketplaces, cross-game asset utilization, and metaverse banking solutions. Positioning Ultra as Vaulta’s gaming hub provides a gateway to Gaming and GameFi opportunities to our community. At the heart of our collaboration is a shared ambition to elevate digital assets to the standards of traditional finance, empowering users with new financial opportunities powered by Web3.”

Convictions behind this partnership

  1. A new definition of the modern player 

Gone are the days when “player” meant just someone holding a controller. Ultra recognizes three types of players: gamers, viewers, and content creators, each with unique behaviors, needs, and expectations. In partnership with Vaulta, Ultra is building critical infrastructure to fit this new reality and serve all three player groups.

  1. Every industry will have its own chain 

Finance has Vaulta. Gaming has Ultra. Both chains are purpose-built and interoperable, aligning deeply with the needs of their respective audiences. Ultra is not adapting general-purpose tech. It’s building the backbone of the gaming industry from the ground up.

  1. UOS will be THE gaming currency 

Ultra is committed to establishing $UOS as the default currency for in-game transactions, rewards, and monetization across titles, platforms, and services. Just as the dollar dominates oil, $UOS will define value in gaming.

  1. Access and consumption of games will change 

Similar to how Netflix revolutionized film and Spotify transformed music, Ultra envisions a shift in how people access and engage with games. Gamers deserve immersive platforms. Developers desire tools and reach. Publishers demand data and performance. Ultra is building a complete ecosystem that puts them all first.

  1. Crypto must be treated with the same standards as traditional finance 

That’s why Ultra partners only with chains like Vaulta, ones that treat crypto with the same expectations as fiat: prioritising trust, utility, and transparency. Real utility demands real accountability.

  1. AI will unlock the next layer of personalized gaming

AI isn’t just a feature, it’s a fundamental shift in how players should experience games. That’s why Ultra is embedding AI deeply into its ecosystem to serve three purposes: hyper-personalization, real-time gameplay guidance, and intelligent ecosystem interaction. Players won’t just play, they’ll be guided, supported, and understood.

Building the Infrastructure for the Next Era

As co-leaders in blockchain innovation, this partnership is fundamentally guided by a shared purpose to serve the future of gaming, combining Vaulta’s financial rails with Ultra’s user-first infrastructure. 

The partnership aims to radically upgrade the outdated backbone of the gaming industry, delivering ultra-fast transactions, scalable gaming experiences, improved security, and new tools for developers and publishers.

Ultra serves three core clients – gamers, developers, and publishers –  and everything it builds is made to serve their needs. Ultra is building a complete ecosystem that puts them all first. This partnership enhances that mission with sharper tools, smarter systems, and better outcomes for each. 

Technical Exchange Details

The partnership will provide Ultra with access to:

  • Vaulta Spring framework: enabling improved scalability and security alongside a smoother user experience for its platform

  • Vaulta Banking OS framework: Offering enhancements in transaction speed and asset management, while giving Ultra’s gaming ecosystem access to the multi-chain interoperability (IBC) environment 

In exchange, Ultra will provide Vaulta with:

  • Ultratest: A next-generation smart contract testing framework, which allows developers to launch faster and more securely

  • MSIG Signing Tool: A breakthrough in secure gaming transactions and digital ownership

  • Predicate System: Reduces gas fees to make blockchain gaming more affordable and accessible 

  • HSM Signing Code hardware: Secure hardware signing for private key management 

Broader Impact and What’s Next

This partnership isn’t just about technology exchange, it represents a broader alignment of values between two industry-first platforms. As blockchain adoption deepens across industries, Vaulta and Ultra are taking the lead in building the specialized infrastructure needed to serve real users at scale. The partnership unlocks new opportunities and standards for what’s possible in digital entertainment.

At the same time, it supports Vaulta’s broader goal of engaging directly with industry leaders to build the next iteration of global finance, through real use cases, real infrastructure, and real collaboration. More partnerships will follow in the coming weeks, all designed to unlock new use cases, drive innovation, and accelerate adoption across the digital economy.

This partnership follows Vaulta’s recent rebrand (previously EOS Network) and strategic alignment to Web3 Banking, and comes on the heels of key milestones in Ultra’s 2025 roadmap, including the closing of a $12 million round led by NOIA Capital and the key c-suite appointment of Maxime van Steenberghe as Ultra’s new COO. 

The post Vaulta and Ultra Embark on Strategic Partnership to Power the Future of Gaming and Finance appeared first on European Gaming Industry News.

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Legalizing Online Casino Gaming Could Generate Over $18 Billion in Tax Revenue to US States

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Legalizing online casino gaming could add $18.4 billion to US state budgets, a new study says.

The report, conducted by online casino comparison site BonusFinder.com, analyzed tax revenue generated by online casinos across the seven US states where they are already legal — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia — to estimate the total economic impact.

Based on average per-adult spending of $262.40 in those markets, the researchers estimated how much revenue the remaining 44 jurisdictions, including Washington D.C., could generate if they adopted similar legislation.

In total, the study estimated that the states are leaving up to $62 billion in gross revenue on the table.

With a 30% tax rate — an average of the seven states with legal online casino gaming— this would translate into $18.4 billion in tax income annually. Even with a more conservative tax rate of 20%, the figures could reach $12.3 billion.

California is estimated to be missing out on the most — with the analysis showing that its adult population of approximately 31 million could generate up to $2.4 billion in annual tax revenue.

“These numbers highlight two problems,” said Luciano Passavanti, Vice President at BonusFinder.com. “States are missing out on billions in tax revenue, and consumers are being pushed to platforms that don’t offer the same safety, accountability, or responsible gaming tools as licensed operators.”

This concern is backed by a recent report from research firm Yield Sec, which found that 74% of gross gaming revenue in the US in 2023 — totaling $67.1 billion — came from unlicensed, illegal, and unregulated operators.

That means the vast majority of online gambling activity is still happening outside state oversight — costing governments billions in potential tax income and leaving players vulnerable.

“The demand for online casino gaming already exists — but right now, the money is flowing offshore,” Passavanti added. “States that act now have the chance to bring that revenue back into their own economies, and to do so responsibly.”

States where online casino gaming is already legal are directing the funds into essential public services. In Michigan, more than $400 million from iGaming taxes, which includes both online sports betting and online casinos, went to the School Aid Fund, $4 million to the First Responder Presumed Coverage Fund and $3.7 million to the state’s agricultural and equine development programs.

Beyond the financial upside, regulated online casino markets allow states to implement age verification, deposit limits, and self-exclusion tools, offering far stronger consumer protections than offshore operators.

“With over $18 billion in annual tax revenue potentially at stake, the case for legalization is becoming harder to ignore.” Passavanti said.

“As states continue to explore ways to balance budgets and modernize outdated gambling laws, regulated online casinos could offer both financial upside and meaningful consumer protections — if policymakers are ready to act.”

The post Legalizing Online Casino Gaming Could Generate Over $18 Billion in Tax Revenue to US States appeared first on European Gaming Industry News.

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