SaskGaming Reports Huge Financial Losses
The global health crisis has taken a massive toll on yet another one of Canada’s gaming corporations. SaskGaming has reported massive financial losses for the first time in its existence. According to the firm, it lost CAD13,4 million in the 2020 to 2021 fiscal year. In its 25 years of operations, SaskGaming has never experienced conditions quite like these, which has seen many of its business properties close due to mandatory shutdowns by provinces throughout the country.
The last fiscal year saw SaskGaming’s Casino Moose Jaw and Casino Regina close for a total of seven months. Initially, they were ordered to close in March of 2020 and were allowed to reopen again in July of that year. However, when the casinos reopened, they could only operate at a reduced capacity. This made it difficult for the firm to make up for lost revenue.
Complications With Reopening
Gaming venues in Saskatoon were all ordered to shut down in December 2020 as authorities scrambled to try and contain the health crisis. As a result, 238 unionised workers and 89 non-unionised workers were temporarily laid off. This suspension was anticipated to last only a few weeks, but due to the complications that came with trying to reopen venues, all operations remained suspended until June this year.
Just a few weeks ago, Saskatchewan authorities announced that casinos would be allowed to reopen. The province’s Indian Gaming Authority quickly announced that its seven casinos in the province would reopen.
Huge Revenue Losses
SaskGaming published its annual financial report on Monday. In it, it was revealed that the firm has endured losses amounting to CAD13,4 million. Susan Flett, the President and CEO of SaskGaming, expressed in a statement that in its 25-year history, the company has never experienced a loss this big.
Apart from the closures, and the layoffs, only 318 employees of Casino Regina and 69 of Casino Moose Jaw returned to work. This coupled with limited working hours and restrictions on food and drink amenities made it incredibly difficult for SaskGaming to bounce back. However, despite the rough start to the financial year, the corporation was able to improve on its results in the second quarter of the year.
These efforts were then thwarted by the lockdown of December which stayed in place until after April, which marked the end of the fiscal year. Overall, SaskGaming’s revenue hit CAD30,9 million, which pales in comparison to the CAD114,1 million of the previous year.