Alberta Sees Surge of Casino Revenue and Investment

This month, Alberta saw the reopening of the former Cambridge Hotel and Conference Centre in Red Deer restart operations as Red Deer Resort and Casino. It marked another occasion of important investment in the province’s gambling sector in 2023. The opening of the gaming location was a relocation of Red Deer’s existing Jackpot Casino.

It should be mentioned that around two years ago, O’Chiese Hospitality Limited Partnership, a venture of the O’Chiese First Nation, purchased the former Cambridge Hotel and Conference Centre from Temple Hotels Inc. The company had a long-term vision for the project to enhance the resort as part of its economic development strategy in the area.

Driving Tourism and Investment

George Yammine, CEO of O’Chiese Business and Investment Centre recently commented that the completion and launch of the gaming segment is a major achievement for the company and the City of Red Deer. He believes the casino will be an important driver of tourism and economic growth in the region, and it will become a hotspot for entertainment in the area.

In an interview from 2021, O’Chiese First Nation Chief Douglas Beaverbones commented that the company gambled with the property but it has now paid off. He shared that after the effects of the unprecedented situation are gone, they will be able to start making money out of it. The property’s 38,000-square-foot casino is a relocation of the city’s Jackpot Casino, which the company bought in 2017.

The Alberta Gaming and Liquor Cannabis informed that no new electronic gaming machines were installed at the venue, but table games were added to its offerings. On top of the casino, O’Chiese also revamped the property’s guest rooms, as in August 2023, it started demolitions of the two nightclubs on each side of the resort. The two clubs in question are Longriders Saloon and Bellinis Sonic Lounge.

Casinos are Recovering

Gambling operators in Alberta have seen improvement in numbers since the end of the health restrictions a year or two ago which allowed larger public gatherings. For instance, AGLC reported charitable gaming proceeds jumped to CA$1.2 billion in its latest fiscal year from CA$495 million in the previous year. It also disclosed 50% increase in net sales of VLTs and slots.

Other movements in the sector saw Calgary’s Ace Casino relocate to its new home next to the Calgary International Airport. Also, developer Kurt Belich launched an 88-slot casino at racing entertainment Track on 2 in Lacombe last October. VICI Properties also expanded its portfolio by acquiring several properties in the province.

The New York-based firm inked a deal to acquire four properties from Century Casinos Inc. for approximately CA$221.7 million. The deal arrived after in January 2023, the company bought four casinos from PURE Canadian Gaming Corporation for CA$271.9 million. Both transactions were sale-leaseback deals that promised attractive long-term lease revenue to VICI.

Source: Mitham, Peter “Reopening of venues drives casino revenue, investment” Western Investor, September 21, 2023