- the source for market opinions


April 30, 2019 | BC’s ‘Dirty Money’ Crackdown Biting Casino Profits/Investors

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

Over the past decade, developers and investors noted that Vancouver casino revenues grew handsomely while most other casino areas had flat-lined.  Then, in 2018, after years of accepting suitcases and hockey bags full of cash without questions, a new focus on Canada’s anti-money laundering laws have not surprisingly spoiled the party in British Columbia.  See Vancouver’s once rollicking casinos hit by ‘dirty money’ crackdown:

The [Great Canadian Gaming] company reported last month that table drop — the amount of money patrons used at tables to buy chips — fell 16 percent in 2018 to C$298 million at its 10 properties in British Columbia, driven by a decline at River Rock. Revenue from British Columbia also dipped 3 percent due in part to the new source-of-funds procedures, it said.

Recent enforcement of laws requiring disclosure of the source of cash coming into casinos prompted Las Vegas-based developer and operator Paragon Gaming Holding Co. to abandon its interest in the newest Vancouver property Parq Resort, selling its interest to Ottawa-based private realty company PBC Group.  Other investors include Canada’s Dundee Corp.  Now that revenues are down, refinancing of debt has become a problem and S&P has warned of default probability within the year.

Dundee has said it’s seeking to bring in a new partner to Parq by Tuesday. All told, investors had pumped more than C$1 billion in long-term debt and equity into Parq by the end of 2018, according to filings. Dundee, which put in C$142 million of that, has said it doesn’t expect to fully recover its investment and that it could take another year or two before Parq is closer to stable operations.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

April 30th, 2019

Posted In: Juggling Dynamite

Post a Comment:

Your email address will not be published.

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.