Money Laundering Crackdown Hits Hard Rock Casino Vancouver with 12.5-Pct Revenue Drop

Casino gaming revenue is one of the most accurate indicators of the levels of interest towards a given location and casino operators are aware of this. Hard Rock Casino Vancouver is also aware of this indicator which has shown concerning rates in the past three months. First quarter financial performance on site shows that the gaming revenue witnessed a 12.5-percent drop over the first quarter of this fiscal year.

When it comes to the financial performance of a given company or location, the first quarter of every fiscal year is of utmost importance, as it could clearly show the direction of development. The first three months of operation set the tone for the upcoming year of casino gaming on site and give valuable information to both the management and shareholders. Hard Rock Casino Vancouver recently issued details about its work.

Gaming Revenue Drop Reported

Over the three months that ended March 31, 2019 the location has witnessed some CA$282.8 million in gaming chips purchases. Once compared to the location’s performance over the same period last fiscal year, this marks a 12.5-percent drop that should not go unnoticed. Great Canadian Gaming is the casino operator overseeing the location.

It is known that the casino operator recently let go of its US subsidiary Great American Gaming Corporation, in order to focus on its Canadian development. Pouring time and efforts into bettering its local operation would propel future projects. However, when there are external factors affecting casino work there is not much a casino developer could do. British Columbia government crackdown on money laundering has negatively affected the field.

Locations to the likes of River Rock Casino in Richmond, also overseen by Great Canadian Corporation, as well as Parq Vancouver have reported a significant drop in gaming revenue and VIP players numbers ever since the crackdown has been in progress. The government is seeking answers and it recently announced a public inquiry would soon launch.

VIP Players Stay Away from Casino Venue

Casino revenue allocations are a mandatory feature of every casino venue in Canada. Supporting the host community with regular portions of the gaming revenue boosts local projects, beautification work, and much-needed roadworks, eventually improving the overall well-being of locals. Coquitlam bags some 10 percent of the gaming revenue generated at Hard Rock Casino thanks to the revenue sharing agreement.

Michelle Hunt, the city’s manager of finance and technology pointed out that Coquitlam is going to keep a close eye on the casino venue financial performance throughout the year. For the time being, the budget remains unchanged despite the revenue drop – CA$7.7 million.

This facility is valuable for the city coffers, as it has been able to grant them over CA$131 million over the past 17 years of operation. Coquitlam’s tourism and Spirit Grant programs have been able to bag a substantial amount of cash on a regular basis. In addition to that, more than 200 local groups have also benefitted from the allocations, successfully achieving their project goals.