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Report NEW BRUNSWICK


registration for casino employees is $400 per year. Pay out is minimum 88%.


The casino saw gross gaming revenues last year of $15.8m of which 46 per cent is allocated to Sonco, 50 per cent is retained by the NBLGC and three per cent is deposited to the casino Capital Reserve which is a fund established under the service provider agreement for subsequent development, improvement or refurbishment at the casino.


Sonco Gaming was founded in 1995 and is an operator and developer of gaming properties. Sonco was the developer and project manager of two similar sized projects in Ontario – the Great Blue Heron charity casino (where it is a partner of the operating company) and in Calgary, Alberta with the Grey Eagle Casino and Bingo where it is also the operator. The company has 14 years experience in the Canadian gaming industry.


VLT The lottery in New Brunswick is operated by Atlantic Lottery Corporation and Interprovincial Lottery Corporation. The lottery in New Brunswick offers a number of games from National draw games, regional draw, sports games, scratch and win, breakopen games, interactive games and ibingo.


THE MAJORITY OF THE PROVINCE FAVOURED A


GOVERNMENT RUN REGULATED


PROGRAMME AND IN 2002 THE ALC


BECAME THE SOLE OPERATOR OF VLTS


VLTs in New Brunswick have been operated by the Atlantic Lottery Corporation (ALC) since 1990. The ALC is a crown corporation owned by the four Atlantic provinces – New Brunswick, Nova Scotia, Newfoundland and Prince Edward Island.


The ALC was founded in 1976 and at the time offered just one game. Since this time is has returned more than $7.4bn in profit back to the communities. Originally VLTs were permitted in a variety of locations in New Brunswick but by 2000 only sites with a liquor licence were eligible to operate them


In 2001 a referendum was held and the majority of the province favoured a government run regulated programme


February 2013 PAGE 122 The ALC was


founded in 1976 and at the time offered just one


game. Since this time is has


returned more than $7.4bn in profit back to the


communities.


Originally VLTs were permitted in a


variety of locations in New Brunswick but by 2000 only


sites with a liquor licence were


eligible to operate them


and so in 2002 the ALC became the sole operator of VLTs. Site holders had to enter into a contract with ALC and originally a restaurant could have up to two VLTs whilst a bar could have up to five. There was no licence or fee for equipment.


In 2007 under the responsible gambling policy the sector underwent several changes which were completed by April 2010. Changes to the VLT programme included:


• A restriction of VLTs to age controlled environments and since 2009 VLTs were no longer permitted in restaurants.


• A 50 per cent reduction in the number of VLT sites in New Brunswick. This reduced the number from 625 sites to a maximum of 300 sites.


• A 25 per cent reduction in the number of VLTs in New Brunswick. This reduced the number from 2,650 to a maximum of 2,000


• There are two classes of VLT sites:


Category I – 15-25 VLTs per site Category II – up to 10 VLTs per site


• There are no more than 20 Category I sites permitted in the province and a maximum of four of these 20 sites permitted in the casino market area (80km radius)


• The site holder commission was reduced to: Category I – 15% commission (previously 22%)


Category II – 20% commission (previously 22%)


• The implementation of an annual registration fee of $200 per terminal per year.


• Implementation of responsible gaming requirements into the VLT programme to include staff training on problem gambling


• Development and incorporation of business and performance standards for the VLT programme such as seating


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