Preliminary Private Discussions Underway
Canadian casino operator Gateway Casinos & Entertainment is in early discussions to secure $1.3 billion in funding to refinance its current loans and pay dividends to its shareholders. These conversations, according to sources familiar with the matter, are being conducted privately and involve collaboration with financial services giant Morgan Stanley.
Funding Objectives: Dividend Payments and Loan Refinancing
The primary aim of the $1.3 billion loan, as per Bloomberg reports, is to support Gateway Casinos in both paying dividends to owners and refinancing existing loans. However, Gateway Casinos has yet to officially confirm these plans or announce any finalized agreement.
Gateway Casinos Brand Portfolio
Gateway Casinos operates a diverse portfolio of well-known Canadian gaming brands, including Grand Villa Casino, Cascades Casino, Starlight Casino, Playtime Casino, Match Eatery & Public House, Atlas Steak + Fish, and Chow Lucky Noodle Bar. The company’s reach extends across Alberta, British Columbia, and Ontario, where it owns and operates 31 casino properties.
Report Highlights Gambling Advertising and Availability Concerns in Canada
In related industry news, The Greo Evidence Insights (Greo) and the Canadian Centre on Substance Use and Addiction (CCSA) have jointly published a report titled, “Gambling Availability and Advertising in Canada: A Call to Action.” This report addresses the increasing presence of gambling advertising on various platforms, including billboards, social media, and sports broadcasts.
Key Recommendations from the CCSA Report
The report proposes the development of a national framework that would address potential conflicts of interest among stakeholders, secure more funding for gambling harm prevention and research, and establish nationwide standards. The initiative also calls for monitoring changes in gambling-related harm and raising public awareness about the risks associated with gambling.
In response to the heightened visibility of gambling advertisements, this report serves as a timely examination of the impact legal gambling has on Canadian communities and seeks to mitigate potential negative effects.
