Gateway Casino gets 200 million LEEF loan from government

Today in the Globe and mail I read that gateway casino got 200 million dollars from the Canadian government for pandemic relief, why did the CFL get nothing?

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This is the best argument I have read yet after reading some objections in favour and against the film industry.

And this example nullifies any "artistic merit" argument.

Also, speaking for how things are done in places like Las Vegas or in Connecticut USA with their large established tribal casinos and resorts for over 20 years now, when certain palms are greased and often not with money ...

I sure according to JT they bring in more money into the economy than the CFL lol.

Pierre must be so proud.

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Wow, yet another example of how those involoved with the CFL, either directly or indirectly, think they are above everyone else, and that they only care about themselves and no one else in this world matters.

If any of you had actually bothered to read the headline, you will know it is aid through the LEEFF program, which is a program setup through the federal government, along with the Canada Development Investment Corporation, to help out companies such as Gateway Casinos better manage during the pandemic.

Further, if any of you had also done some actual research, you will also know that this is a $200 million loan being provided through such program, and that this particular company met the thresholds to meet the requirements, which is why they were provided with this loan.

https://ca.finance.yahoo.com/news/gateway-casino-gets-first-federal-205711591.html

A federal program aimed at giving loans to some of the largest companies in the country is rolling the dice with $200 million to a casino chain.

The loan is the first from what the government has dubbed the "large employer emergency financing facility," or LEEF for short, that is aimed at providing loans to companies with revenues of $300 million or more.

Further, you will all recall that the CFL was infact provided with loan opportunities, in particular from the BDC. However, the league chose to decline those offers.

I have no idea why Justin Trudeau is getting blamed for this.

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Thanks for your post. You are so right about making sure to actually read the news as opposed to just the HEADLINE made up by a poster here.

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CFL should have paid Margaret to speak st a few functions snd the money would be flowing...

I'd be interested to know what interest rate they are charging the casino. The loan that the CFL turned down was somewhere around 7% which struck me as awfully steep at the time.

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Luckily this info is available on a publicly accessible website :slight_smile:

  • Interest Rate . With respect to the unsecured facility, cumulative at 5% per annum payable quarterly in arrears. The interest rate will increase to 8% per annum on the one-year anniversary and will increase by a further 2% per annum each year thereafter. To reduce cash pressures, interest may be paid in-kind for the first two years of the loan. For the secured facility, the interest rate will be based on the interest rate of the borrower’s existing secured debt.
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7% on a commercial loan steep? C'mon now.

gambling is against the rules tho!111!1!!!1

Gateway will pay off the loan in no time at all. It can handle the heavy juice. They have a lot of properties in Ontario and in western Canada that it operates, but not own

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5% the first year then 8% to 14% on a commercial unsecured loan is not heavy juice. It's quite the opposite - a corporate subsidy I would argue. It certainly is not market rate. This is not some energy company or other enterprise with more stability.

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When did a casino ever lose money? besides the government takes a good cut from the profits.
But even so, if casinos are such a money making operation they shouldn't be getting any loans from government. They could've easily got a loan from the banks

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When people couldn't go?

So it is in the best interests of governments to support them?
With their "own money"?

That applies to so many of the larger corporations ... but many (most?) might well have used the philosophy that made them money-making and chosen to simply lay off staff rather than incur debt.

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People will go to a casino regardless whether it rains, snows. Casinos offer comps and free playing credits to play for it's customer base. People will take advantage of it.

I know because I'm in the Gaming Industry.

Gateway is using the loan to restart it numerous properties in Ontario and Western Canada for the Ontario restart. It laid off nobody. Gateway is allowing 10 players on the gaming floor by invite only, meaning high rollers to mitigate it's losses.

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That is interesting. So Joe Taxpayer takes all the risk but the wealthiest get to do what Joe Taxpayer can not. Not questioning the business behind the loan. I know nothing of the gaming industry and your arguments seem to make a lot of sense.

But we are clearly living in Bizarro Times

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The Province gets 30% off the gross monthly. The provincial cut pays for numerous services within the gov't perimeters. Without that monthly payout, you'd be hit with a further tax.

Still blood money

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The Province get the money from one way or another. This allows you a way to keep some of your money. Blood has nothing to do with this. It ain't elephant tusk trade