Archived News Releases

May 22, 1997




Winnipeg's gaming facilities will be better positioned to attract tourism with the consolidation of the Crystal Casino with Club Regent and McPhillips Street Station, Eric Stefanson, minister responsible for the Manitoba Lotteries Corporation (MLC), announced today.

In accepting the recommendations of an independent review by the consulting firm of Price Waterhouse, Stefanson noted, "the report strongly recommends ensuring the long-term viability of Manitoba casino sites as tourist destinations. This will create spinoff benefits to local businesses, the hospitality industry and the economy as a whole."

The study was undertaken in response to the Manitoba Lottery Policy Review Working Group (the Desjardins Report) that recommended a review of Winnipeg's gaming facilities in light of the Crystal Casino's pending lease expiration in 1999. The report recommended the study address questions relating to casino size and location, scope of gaming operations and the advisability of offering licensed beverage services, food and entertainment.

"Price Waterhouse concluded that consolidation of Crystal Casino operations with Club Regent and McPhillips Street Station was the most appropriate based on numerous criteria including market demographics, market maturity, out-of-province casino competition, financial criteria, trends in the gaming industry, tourism opportunities, customer service amenities, visitor preferences and consultation with stakeholders," said Stefanson.

The report further concluded that a downtown casino was not as financially viable for two main reasons: first, the government has a relatively large investment in Club Regent and McPhillips Street Station that already serve as successful tourist destinations; and second, the gaming market is mature, with challenges to gaming operations coming from increasing competition. The focus of the recommendations is to maintain the facilities' existing market share, attract tourism and encourage Manitobans to stay in Manitoba to play.

Stefanson added the bulk of the spinoff economic benefits a casino generates accrues globally to the economy of a city or region, and much less so to the businesses in the immediate vicinity.

"The study shows that tourists are six times more likely to visit Club Regent and McPhillips Street Station than they are to visit the downtown Crystal Casino," said Stefanson. "Tour operators, who will bring the 300 tours expected this year, indicate that the choice to visit Winnipeg as a destination is based on the attractiveness of the city as a whole, rather than the downtown area alone."

The minister noted that successful non-downtown casinos operate in Montreal and Hull, Quebec, Sydney, Nova Scotia and the casinos in Niagara and Orillia in Ontario. Visits to the Crystal Casino have declined by 24 per cent since 1994, indicating a downtown location is not essential.

In response to the services offered by casino locations in Saskatchewan and the United States, the report recommended that food, licensed beverage services and entertainment should be part of the enhanced facilities.

"Tour operators have pointed out that nearby casino operations offer amenities that influence tourists in their choice of destination," added Stefanson. "By offering expanded food services, lounge-based beverage services, and live entertainment options on site, we are better prepared to compete in this marketplace."

To accommodate these additional services, along with the table games that will be transferred from the Crystal Casino, renovations of approximately $25 million for each site will be undertaken, with completion expected prior to the 1999 Pan Am Games. The report noted that the estimated cost of a new downtown casino would be over $70 million, however since the completion of the report, additional information indicates the cost would be close to $90 million. Staff from the Crystal Casino will be relocated to Club Regent and McPhillips Street Station, and 325 new jobs will be created to accommodate the additional amenities.

In conclusion, Stefanson stated the following recommendations have been accepted:

- The MLC should close the Crystal Casino in 1999 and expand McPhillips Street Station and Club Regent.

- Food and licensed beverage services, as well as entertainment, should be a part of the two expanded locations.

- The MLC should develop a long-term strategic plan that should contain specific policy guidelines for providing and marketing an enhanced product.

"With this consolidation and enhancement, MLC will develop a long-term plan to feature Club Regent and McPhillips Street Station as full-service tourist destinations," said Stefanson. "We are confident that these changes will widen the existing casinos' appeal and attract a broader tourist market."