9. Where are Gateway’s casinos located?
Gateway operates the Burnaby Casino and Cascades Casino in Greater Vancouver, BC, the Palace Casino in Edmonton, Alberta, and the Lake City Casinos in Kamloops, Kelowna, Penticton and Vernon.
10. What is a destination casino?
A destination casino is generally defined as a large-scale casino that is typically marketed to non-local tourist market. The Strip casinos in Las Vegas are examples of destination casinos.
11. Are Gateway’s casinos destination casinos?
No. Gateway’s casinos are all community casinos and are marketed primarily to the local population. The majority of our customers live within 15 kilometres of our casinos.
12. What is the relationship between Gateway and the provincial governments in B.C. and Alberta?
Under the Canadian Criminal Code, all casino gambling must be “managed and controlled” by a provincial government. In B.C. and Alberta, the provincial governments have developed a model where they contract the operation of the casinos to third party operators, such as Gateway. In B.C., we operate under Casino Operational Services Agreements (“COSA”) with the British Columbia Lottery Corporation (“BCLC”). In Alberta, we operate under a Casinos Facility License (“CFL”) granted bye the Alberta Gaming and Liquor Commission (“AGLC”).
The BCLC and AGLC determine which games and products are available, the rules of play and operating standards and the payouts. They also provide and maintain any of the gaming equipment that impacts the odds of winning, including the slot machines.
Gateway looks after the operations of the casinos. We provide the facilities, furniture, labour, security, marketing and administration required to keep the casino running smoothly.
15. How is Gateway compensated?
Gateway receives a percentage of the revenue generated at each casino, as follows:
B.C. | Alberta | |
Table games | 40% | 50% |
Slot machines and | 25% | 15% |
Craps | 70%, to a maximum of | 75% |
Poker | 75% of the "rake" | 75% of the "rake" |
16. What is the Facility Development Fund?
Under the terms of the COSAs with the BCLC, the BCLC deposits a facility development fee (”FDF”), equal to 3% of the total revenue generated from the table games and slot machines at each BC casino, into a trust account managed by the casino operator, for payout of additional compensation based on eligible capital expenditures. When Gateway incurs an eligible expenditure, it submits this to the BCLC for approval and, once approved, can draw the amount of the expenditure from the Facility Development Fund. Any funds not reimbursed accumulate in the facility development fund for future eligible expenditures.
17. What types of expenditures are eligible for additional compensation from the Facility Development Fund?
In general, all capital expenditures to develop a casino and all capital expenditures that improve the casino are eligible for additional compensation from the Facility Development Fund.
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