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

4. History

5. The Vision

6. St. Eugene Golf Course
18 Hole Championship
• Designed by Les Furber
• Opened in May 2000
• 7007 yards
• Par 72

7. St. Eugene Golf Course

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

25. The Future

26. The Future

27. Concluding Remarks