Revenue Stumbles Endanger Casino Nova Scotia’s Future

Casino Nova Scotia had difficulties adjusting to the market long before the sudden occurrence of the unprecedented situation in March 2020. The ongoing lockdown restrictions only deteriorated the property’s financial worries, and the Nova Scotia Gaming Corporation does not deny the issue. In fact, the Crown agency for the region is willing to discuss options regarding the casino’s future.

Emerging industry reports suggest that the gaming entity’s financial problems initially occurred over a decade ago. And even points out that ever since the property hit its peak fiscal figures in the middle of the 2000s, the casino has been operating at an “unsustainable” revenue rate. The Crown is even considering changing its location in hope that it regains its former glory, but that will be after the lockdown restrictions are gone.

Decrease in Income

According to the lottery corporation’s CEO Bob MacKinnon, the mid-2000s were the most profitable spells for the casino with around CA$75 million in annual net revenue. But ever since then it was noticed by the regulator that net income has decreased by over 30%. With reports of over CA$54 million in net revenue for the 2014-2015 fiscal year. Casino Nova Scotia staff was closing in on 750 workers at the start of 2000 and has been decreased over time to almost 300 employees.

Prior to the last year’s lockdown commencing the gambling entity has reported a CA$65.6 revenue total for the previous fiscal year, and it suffered even greater losses during the ongoing lockdown. The venue was closed in March 2020 and later reopened on October 5, 2020. But it was closed down once again at the end of November 2020.

Relocation

The possibility of relocating the location of the casino has also been previously discussed as early as 2014. According to Mr. MacKinnon, the corporation was offered five new sites for the proposed relocation. But the unprecedented situation has put such discussions on halt and staff decided that it is best for the property in terms of financial cost to remain on the existing site.

The moving of the Casino Nova Scotia is still not scrapped according to the CEO of the Crown agency who claimed that the corporation is awaiting the end of the unparalleled situation in order to evaluate the new post-crisis environment. Mr. MacKinnon concluded that the gaming establishment’s desire is to remain transparent to its policies and it is currently trying to release as much info as possible on the current gambling situation in the province.

Recent Reopening

At the start of this year, the casino in Halifax received an official green light from the provincial government to renew its operations. The reopening date was set for January 11, 2021, but guests of the property had to comply with the mandatory health and safety measures in order to place a few bets. The Crown corporation established a 20% players’ capacity and even food and drinks amenities were also allowed.

Forward Steps

With the uncertainty around the future of land-based casinos due to the ever-changing conditions and restrictions, the province has decided to expand its gambling sector. The local government has announced its plans to launch an online gaming platform with the help of the Crown corporation in order to bring back gambling opportunities to its many fans in the region.

Source: Luck, Shaina “Future of casino in Halifax at issue amid declining revenues, possible move”, CBC, March 1, 2021