The BC Lottery Corp. (BCLC) says high-limit table games at casinos are booming, but lottery ticket sales are sagging.
The Crown gambling corporation sold $1.032 billion in lottery products in 2013-14 but is projecting a decline to $971 million for the fiscal year ending March 31. That, according to the Crown agency’s three-year service plan published on February 17, provincial budget day. Casino and community gaming revenue of $1.685 billion in 2013-14 was forecast to rise to $1.773 billion this fiscal year.
“The fastest growing segment of our revenue – high-limit table games in casinos – is heavily dependent on an international player base and is largely tied to the health of the tourism industry,” said the service plan. “The recent slowdown of international economies and currency restrictions presents risks for the growth of business.”
The report doesn’t name China, but China has become Vancouver’s biggest offshore tourist market and Great Canadian Gaming’s River Rock Casino Resort experienced a 30% jump in table game net revenue during 2014’s Chinese New Year compared with 2013.
BCLC recorded $1.175 billion net income in 2013-14 and is forecasting $1.2 billion net income by the March 31 end of the current fiscal year.
Meanwhile, the Liquor Distribution Branch’s (LDB) service plan came with a gallon of uncertainty because of the April 1 launch of a new wholesale pricing system and introduction of alcohol sales in select grocery stores.
The service plan for the taxpayer-owned beer, wine and spirits distributor and retail chain did not include any assumptions about the impact of grocery store sales on its bottom line.
The LDB is forecasting a stable market share and product mix but is expecting net sales to remain flat in 2015-16. The Crown agency’s service plan said a combination of inflation and volume growth will increase annual sales by 2% from 2016-17 onward.
The LDB posted $877 million in net income on $2.745 billion in 2013-14 sales.
It forecast $2.8 billion in sales and $907.6 million net income through March 31 of this year. Its 2015-16 forecast is $880.6 million in net income on $2.842 billion in sales.
LDB maintains a percentage-based markup on products, so a reduction in supplier prices would mean less LDB revenue, if volume stays constant. The service plan said that each percentage point change in the cost of wine, spirits and refreshment beverages has a $9 million impact on its revenue.
According to its service plan, the Crown corporation that runs the Vancouver Convention Centre and BC Place Stadium is predicting $37.8 million in losses for the next three years.
However, the BC Pavilion Corp. is forecasting 427,000 non-resident delegate days at the convention centre for the year ending March 31. That would be an increase of 123,000 over the last fiscal year. It’s targeting 490,000 delegate days by visitors from outside B.C. in 2015-16.
BC Place, however, is expecting attendance to dip to 1.049 million from last year’s 1.192 million. A rebound to 1.258 million is targeted for 2015-16, which will be highlighted by the FIFA Women’s World Cup.
BC Place lost nearly $19.5 million in 2013-14 and is forecasting a $20.8 million loss by March 31. Another $52 million in deficits is projected through 2017-18.
