Slot revenue for Gateway Casinos Income Fund (TSX: GCI.UN) increased in its 2007 second quarter, but the Burnaby-based still reported a net loss as the federal government's decision to tax income trust distributions generated a one-time $26.5 million non-cash charge.
Gateway's revenue rose to $36.4 million compared with $32.8 million in Q2 2006, but the company still posted a net loss of $19.6 million, or $0.61 per unit, compared with net earnings of $10.8 million, or $0.28 per unit, in 2006's second quarter.
Gateway also reached an agreement with the United Food and Commercial Workers Union to end the strike at its Palace Casino in Edmonton, Alberta.
CEO Dave Gadhia said that increased slot revenue helped offset the strike's impact.
Gateway's revenue from slot machines and other electronic games increased 16.2% over the prior year to $24.3 million. Table games revenue for Q2 2007 was $8 million compared with $8.7 million in the same quarter last year.