Casino news source: Sault Star - http://www.saultstar.com
City's cut from casino continues to slide, despite strong finish
Dan Bellerose
Local News - Friday, April 27, 2007 Updated @ 6:39:06 AM
Ontario Lottery & Gaming (OLG) reports a strong finish to an otherwise so-so year at Casino Sault Ste. Marie.
The city's three-month share for hosting the waterfront charity casino, January through March, is nearly $359,000, four per cent higher than a year ago, the first such Q4 increase in three years.
But the $1.46-million payout for fiscal 2006-2007, April through March, is the second-smallest in the seven full fiscal years the 35,000-square-foot gaming facility has operated.
As well, the 795,000 patrons attending the casino last year, down 105,000 from the previous year, was the smallest turnout in seven full fiscal years. The city receives five per cent of the gaming facility's gross slot revenue from the first 450 slot machines, and two per cent from any additional machines over that number.
Since it opened nearly eight years ago, in May 1999, the city has received more than $12.7 million in non-tax gaming revenue and the facility has drawn more than 7.
4 million visitors.
The $1.46-million fiscal year payout is down a modest $60,000 from the previous year but surpasses only the $1.32 million awarded in fiscal 2000-2001.
It marks the fourth straight year of declining revenue into city coffers, following three years of increases, peaking at $1.95 million in fiscal 2003-2004.
Non-tax gaming revenue can be disbursed at the city's discretion. Council has committed it toward development of the new hospital, physician recruitment and additional police and fire protection.
The city has allocated up to $1 million annually in casino revenue since 2000 toward its expected $30-million share of a new hospital - funding matched dollar-for-dollar from the municipal tax levy. The matching of dollars is expected to continue until 2013.
Last year the city set aside $1 million for the hospital, $333,000 for additional police and fire protection and $243,000 toward the physician recruitment budget.
Physician recruitment has established a nearly $644,000 budget for the current year, down $166,000 from a year ago, including $301,600 from casino revenue reserves, $241,500 from Sault Area Hospital and Group Heath Centre combined and nearly $101,000 from unallocated casino revenue. The committee has recruited 25 new physicians since 2002 and this year's reduced budget should allow it to pursue eight physicians and cover administration costs.
An OLG release attributes improved fourth-quarter performance at the gaming site to strong customer service, entertainment and promotions, continued enhancements in the mix of slots and co-operative marketing programs with the Steelback Centre and Soo Greyhounds.
A redesign of the gaming floor, continuing enhancements to the mix of slots and new marketing programs will be implemented in the coming months as the casino strives for future performance improvement.
OLG issued more than $16.8 million in Q4 non-tax gaming revenue to 23 municipalities that host casinos and slots-at-racetrack facilities.
This fiscal year the province will allocate $105 million in gaming revenue to support charities through the Ontario Trillium Foundation.
As well, it will allocate two per cent of gross revenue from slot machines to problem gambling research, treatment and prevention programs.
adding it up
Following are Casino Sault Ste. Marie's annual fiscal-year contributions to municipal coffers for hosting the charity gaming facility, as well as annual attendance.
The first year was not a full fiscal year. The casino opened May 19 and the fiscal year begins April 1:
1999-2000 $783,000 683,168
2000-2001 $1.32 million 796,599
2001-2002 $1.72 million 996,886
2002-2003 $1.94 million 1,149,302
2003-2004 $1.95 million 1,147,382
2004-2005 $1.78 million 989,809
2005-2006 $1.52 million 900,414
2006-2007 $1.46 million 795,000 |
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