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ALLOCATION OF CASINO GAMBLING REVENUES IN ALBERTA
Table Games in Casinos
Casino facility operators receive a percentage of the total win from table games. Charities initially receive all proceeds from table games and, from this, they pay casino facility operators a fixed fee for service (50% of the net table game proceeds for Edmonton and Calgary casinos; 65% of the net table game proceeds for the St. Albert casino; 65% of the net table game proceeds for casinos outside Edmonton and Calgary with 300 to 400 slot machines, and; 75% of the net table game proceeds for casinos outside Edmonton, Calgary, and St. Albert). Facility operators are also paid 75% of the net from craps and poker dealer services. Racing Entertainment Centres do not offer table games.
In 2005-2006, sales on casino table games totaled approximately $752.4-million. Of this amount, $607.9-million was paid out in prizes, leaving a total net of $144.5-million – which was divided between, casino facility operators, casino advisors, trustees ($93.2-million) and charities ($51.4-million).
In 2009-10, casino table games in Alberta generated gross revenues of $1,013.6-million and returned $818.5-million in prizes to players. Charities paid $125.2-million in event expenses to casino facility operators, advisors, trustees and others for their services related to table games. Charities received $69.9-million from casino table gaming.
Slot Machines in Casinos and Racing Entertainment Centres
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SLOT MACHINES IN ALBERTA
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Fiscal Year
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# of Machines
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Locations
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March 1996
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225
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13
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March 1997
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765
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18
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March 1998
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1,680
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19
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March 1999
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2,851
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18
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March 2000
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3,742
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18
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March 2001
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4,353
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18
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March 2002
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5,305
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18
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March 2003
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6,347
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18
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March 2004
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6,513
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19
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March 2005
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7,055
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19
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March 2006
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8,658
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20
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March 2007
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10,232 |
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March 2008
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11,859 |
26 |
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March 2009
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12,680
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27
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March 2010
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12,873 |
27 |
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The total number of slot machines operating in the Province of Alberta was 12,873 as of March 31st, 2010.
Licensed Casino Facility Operators receive a 15% commission on net slot machine sales as compensation for the costs of space and customer service. A further 15% commission is paid to the charitable organizations holding the licensed events in casinos. The balance (70%) of net slot machine sales at casinos, after deducting the Commission’s operating costs, is provided to the Alberta Lottery Fund. As with licensed Casino Facility Operators, Racing Entertainment Centre (REC) Operators receive a 15% commission on net slot machine sales as compensation for the costs of space and customer service. The remaining 85% of slot machine sales goes to the Alberta Lottery Fund after AGLC costs are deducted.
In 2005-2006, sales on slot machines totaled approximately $11-billion. Of this amount, roughly $10.2-billion was paid out in prizes, leaving a total net of $864-million which was divided between the Alberta Lottery Fund ($605.6-million), casino and REC operators ($127.9-million), charities ($120.6-million), and the federal government ($10.5-million).
In 2009-2010, sales on slot machines totaled approximately $14.6-billion. Of this amount, roughly $13.4-billion was paid out in prizes, leaving a total gross profit for the Alberta Lottery Fund of $1.163-billion (before expenses and commissions / federal payments).
SEGA Race Games in Casinos and Racing Entertainment Centres
The last SEGA electronic horse race games previously operated at a number of Alberta casinos and Racing Entertainment Centres were removed in May, 2006.
Secondary Revenue Streams
In addition to their commissions on profits from table games and slot machines, casino facility operators generate revenues from food and beverage services, parking, foreign exchange, and automated teller machines. These revenues are fully retained by casinos and Racing Entertainment Centres.
First Nations Casinos
A provincial moratorium on new or expanded casinos, including First Nations casinos, was removed on March 1st, 2002. First Nations on-reserve casinos must operate and be regulated under the specific terms and conditions developed by the AGLC. As with traditional casinos, the province requires a 70% share of net proceeds to be paid from on-reserve casino slot machines that is deposited in the Alberta Lottery Fund and used for traditional lottery programs as well as for a First Nations Development Fund Grant Program.
The Host First Nation (HFN) licensed charity receives a 15 per cent commission on net sales from slot machines during its events. The HFN (casino facility operator) also earns a 15 per cent commission. The remaining 70 per cent is transferred to the Alberta Lottery Fund after the AGLC’s operating costs are deducted.
References
Alberta Gaming and Liquor Commission. Annual Reports. St. Albert, AB: Author.
Alberta Gaming and Liquor Commission. Charitable gaming in Alberta in review. St. Albert, AB: Author.
Alberta Gaming and Liquor Commission. (2001). Achieving a balance: Gaming licensing policy review. St. Albert, AB: Author.
Government of Alberta. (2006). Gaming revenues to help First Nation communities. October 20, 2006 news release. Edmonton, AB: Author.
Last Updated: 02/02/11 by Rhys Stevens
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