| Great Canadian Gaming
did a study of Flamboro Downs’ first quarter earnings. Figures
reveal that the tracks horses simply are not pulling in as much
money as its slot machines. To be more specific, the track’s 752
slot machines produce more than twice the revenue brought in by its
standard bred races.
The track’s EBITDA – earnings before interest,
taxes, depreciation, and amortization – reported in the fourth
quarter of 2005 was $4.4 million. The first quarter of 2006 jumped
17.4 percent to $5.2 million.
The original intention for the construction of
Flamboro Downs was for the track to be a showcase for harness
racing. Despite such intentions, the track’s slot machines brought
in almost 51 percent of the gross profit last year, earning nearly
$2.7 million. Statistics have not changes so greatly from last
quarter where slot machines made $2.2 million – 49.5 percent – for
the track.
Horse racing related activities simply did not
carry their weight next to the slot machines. Bets profited the
track only $1.2 million in the first quarter of 2006, that is 5.3
percent more than the $1.1 million scrapped up in 2005’s final
quarter. Horse racing actually gave up some of its space on the pie
chart between 2005 and 2006. Horse racing went from representing
25.3 percent of the EBITDA to only 22 percent. However, even before
the drop, it was only comparable to a fraction of slot machine
profits.
All other major contributors to the track’s
EBITDA rose between the end of 2005 and the beginning of 2006. Food
and beverage operations were up from $1.1 million to $1.4 million,
that represents a 23.3 percent growth. Dining and drinking rose to
26.4 percent from 25.1 percent.
Great Canadian vice president of media and
entertainment, Howard Blank, praised the slot machines stating, “the slot machines
have helped the racetrack by allowing bigger prize purses, in turn
attracting better horses and more crowds.”
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