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Saskatchewan Liquor & Gaming Authority. HOST Saskatchewan Conference March 14 - 15, 2010. About SLGA. Liquor Operations – purchases, warehouses, distributes and retails beverage alcohol Gaming Operations – VLTs, SIGA slot machines, Breakopen Vending Machines
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SaskatchewanLiquor & Gaming Authority HOST Saskatchewan Conference March 14 - 15, 2010
About SLGA • Liquor Operations – purchases, warehouses, distributes and retails beverage alcohol • Gaming Operations – VLTs, SIGA slot machines, Breakopen Vending Machines • Regulator – license and regulate liquor and gaming activities
Gaming in Saskatchewan • Electronic gaming machine market • Charitable gaming market • Bill S-226 update Liquor in Saskatchewan • Litre sales by beverage alcohol category • Dollar sales by category and customer type • Market share by category and customer type • Regulatory changes • Retail initiatives • Top selling products
Saskatchewan Gaming Market Electronic Gaming Machine Market • Total number of VLTs is capped at 4,000 • Casino slot machines totaled 2,865 in 2008-09 Saskatchewan Gaming Corporation • 995 slot machines Saskatchewan Indian Gaming Authority • 1,870 slot machines
Gaming Market Trends • Declining charitable gaming activity (only growing segment is large raffles) • Live horse racing has declined significantly over the past two decades and over the last two years has been flat • VLT market began to rebound in 2006-07 and 2007-08, however in 2008-09 gross revenue was down 2.5% • Year to date (as of Jan. 2, 2010) indicates a decrease of 6.2% in gross VLT revenue and a similar decline in site commissions • SIGA and SGC gaming activity is down YTD as well
VLT Activity VersusCharitable Gaming Net Income Charitable Gaming VLT CG Net Income VLT Gross Revenue Figures are in millions of dollars
Gaming Market Activityby Operator ($ Millions) * VLT site commissions do not include commissions paid to Emerald Casino
Bill S-226 Update • Seeks amendment to the Criminal Code to limit placement of electronic gaming machines to casinos, race courses (racinos) or betting theatres • The Bill received second reading in March 2009, but died on the Order Paper when Parliament was prorogued on Dec. 30, 2009 • Parliament opened on March 1, 2010 and reintroduction of a similar bill has not occurred to date.
Liquor Market in Saskatchewan • Overall growth in both litre and dollar sales very strong in recent years • Sales driven by a strong economy in 2008 and a relatively strong (compared to the rest of Canada) economy in 2009 • Litre and dollar sales expected to increase slightly for fiscal 2010
Volume by Category(YTD as of January 2, 2010) Numbers are 000’s of litres
Total Value of Purchases/SalesAll Product Categories by Customer Type Millions
Market Share of Total Liquor MarketBy Customer Type (All Product Categories)
Volume of Beer PurchasesBy Customer Type Millions of Litres
Top Selling Products • Handout includes the top products and the market share represented by them in that category • The list of top selling wines includes the price per 750 ml bottle as additional information
Regulatory Changes In 2009, SLGA’s advertising policy was amended For 2010-11 SLGA is working on regulatory changes in the following areas: • Delivery of products from microbreweries and brew pubs to commercial permittees • Development of a Micro Distillery policy to be consistent with the Cottage Winery and Microbrewery policies
Regulatory Changes (cont’d) • Other regulatory and related issues of interest: • Moratorium on new brew pub licences and review of framework • Revised Automated Banking Machine placement policy
Retail Initiatives • Two specialty wine store franchises opened in 2009 (Saskatoon in June and Regina in November) • Franchise Pilot Projects