Profits at Red Shores Casino and Racetrack in Prince Edward Island (P.E.I.) have experienced a significant downturn in the fiscal year 2024-25. The Atlantic Lottery Corporation (ALC) controls Red Shores, witnessing overall profits increase by almost $12 million, while P.E.I.’s contribution dropped, reflecting a $25.9 million return in overall lottery revenues to the province, marking a decrease of nearly $1 million from the previous year.
Red Shores Performance Overview
The Red Shores Casino reported a profit of $2.5 million for the 2024-25 fiscal year. This figure indicates a striking 35 percent decrease compared to the prior year. ALC President and CEO Dallas McCready acknowledged the challenges faced by the casino during this period.
Challenges Faced
- Economic slowdown and rising cost-of-living are contributing factors to the dip in casino profitability.
- Despite a consistent volume of visitors, spending per visit has notably declined.
- Ongoing construction and expansion efforts may have temporarily affected the casino’s performance.
McCready stated, “It has been a challenging year. Many other provinces face similar issues with land-based operations.” He expressed optimism about the casino’s future, citing that the renovations and upgraded facilities aim to enhance the overall player experience.
Renovations and Future Expectations
Red Shores is currently undergoing a substantial expansion expected to be completed by early 2026. McCready noted that the upgrades will include new dining and entertainment amenities, intended to revitalize patron engagement.
Impact on the Racing Community
While the casino operations faced challenges, live racing revenues remained stable. However, a noticeable shift occurred as bettors increasingly opted for online wagering. Peter Smith, vice-chair of the P.E.I. Harness Racing Industry Association, emphasized the importance of Red Shores to the local racing community. “Red Shores is vital for the success of the overall operation,” he remarked.
Future Financial Outlook
Looking forward, McCready highlighted numbers for the current year as “quite strong,” instilling confidence in ALC’s long-term outlook for Red Shores. Last fiscal year, P.E.I. garnered $26.8 million from ALC, which was $2.5 million less than anticipated.
The lower profits from the lottery corporation pose implications for provincial funding for essential services such as healthcare and education. However, a spokesperson from P.E.I.’s Department of Finance noted that despite the reduced figures from Red Shores, positive outcomes in other ALC sectors helped mitigate the impacts.
- P.E.I. expects revenue from ALC of $30.1 million for the fiscal year 2024-25.
- The government remains optimistic that the ongoing renovations will enhance the casino’s appeal for its patrons.
