BUSINESS

Operating costs soar as gambling revenues drop in Nova Scotia

TAGs: financial results, Nova Scotia Gaming Corporation

nova scotia casinoEarlier this year, Nova Scotia wilted under the pressure and released a gambling report which the government knew to be flawed. Now a new report suggests that the gambling industry in the eastern Canadian province is headed in the wrong direction.

According to an annual report released by the province’s Alcohol and Gaming Division, gambling revenues in Nova Scotia have fallen slightly due to a rise in operating expenses and a $10-million drop in wagers. The report from the province’s Alcohol and Gaming Division shows that total wagers fell to $1.42 billion in 2010-2011 from the $1.43 billion gambled the year before. Additionally, operating expenses went up to $78 million from $70 million.

According to the Chronicle Herald, Liberal gambling critic Leo Glavine accused the NDP government of not striking a responsible social and economic balance. Glavine criticized the government for spending $7.1 million on marketing and only $6.6 million on research, treatment and prevention.

Nova Scotia has elected not to join other provinces in Canada in launching their own online gambling enterprise and it is possible that they are seeing the effects of that decision as running an online gambling site has considerably lower operating costs and appeals to the younger generations.

How long before this province recognizes the future of gaming and jumps on board the online gambling train?

Comments

views and opinions expressed are those of the author and do not necessarily reflect those of CalvinAyre.com