Casinos do not always make money

It is generally thought that Casinos cannot lose but in Ontario, Canada there are four state owned casinos that between them have managed to lose $94 million last year alone and this is on top of a $76 million loss in 2007-2008. According to Provincial Finance Minister Dwight Duncan the losses are due to an industry wide slowdown and he also blamed the border restrictions imposed after the 9/11 terrorist attacks. In case you are wondering what relevance that has; three of the casinos are located in the Canadian border towns of Niagara Falls and Windsor which obviously cater for US citizens crossing the border.

The results bring into question the decision by the province to spend hundreds of millions of dollars to expand casino operations in Windsor where a concert facility seating 5000 people opened in 2008. Conservative opposition in the Province is attacking the expansion calling it a “billion dollar boondoggle” (that must be a Canadian term) and suggesting that the justification of it creating jobs where they are needed is just an excuse as there are plenty of areas in the province where jobs are lacking.

Mr Duncan could not say when the casinos last made a profit; worrying to say the least.