$5 Million Investment Pays Off In B.C.

05.12.2008 | 4:31 am | Slots, Poker, News, casinos

Despite all of the doom and gloom in the economy, and the casino industry in particular, it seems that investment does pay off. We are hearing news that the Las Vegas owners of the Edgewater Casino in Vancouver have already seen a sizeable return on their $5 million upgrade investment.

The casino was only acquired in 2006, for a figure reported to be in the region of $42 million, so a ten percent plus upgrade investment was a fairly substantial amount to risk. However, the new owners have just announced that revenues for the year to March 2008 were up some 18%, or $5.56 million indicting that total revenues for the casino have topped $100 million for the first time ever. So what did they do?

Interestingly, while slot machines have been something of a favourite in new age casinos, the owners of the Edgewater complex decided to rip out 100 slot machines (reducing the total number from 600 to 500) and increase the number of Poker tables from 4 to 18. While slot machines offer a low margin high turnover return, it seems that the move to create one of the largest Poker rooms in British Columbia is starting to reap rewards.

The new owners also used the additional investment to increase the media profile of the operation, which they claim was the “best kept secret in the region”. This increased promotional spend together with a general improvement in the overall facilities available has taken the casino onto a new level. The owners are now looking to replicate this success in other areas of the country with a number of possible targets in mind.

It will be interesting to see if the new owners are able to replicate this success in other areas of the country, at a time when many in the industry seem to be struggling.