Mr. Rod Baker reports

GREAT CANADIAN GAMING ANNOUNCES FIRST QUARTER 2013 RESULTS

Great Canadian Gaming Corp. today released its financial results for the three-month period ended March 31, 2013.

First-quarter 2013 highlights (amounts are presented in millions of dollars, except for per-share information):

• Revenues of $100.5-million and earnings before interest, taxes, depreciation and amortization (1) of $38.3-million in the first quarter, both a 2-per-cent decrease when compared with the first quarter of 2012;
• Net earnings of $31.3-million in the first quarter, primarily due to long-lived asset impairment reversals totalling $28.5-million;
• Adjusted net earnings (2) of $11.1-million, an 8-per-cent decrease when compared with the prior year;
• Repurchased and cancelled 2.5 million common shares at an average price of $9.32 during March and early April, 2013.

                                                            First-quarter
                                                     2013            2012

Revenues                                       $    100.5     $     102.8
EBITDA (1)                                     $     38.3     $      39.0
EBITDA as a % of revenues                            38.1            37.9
Net earnings (loss)                            $     31.3     $     (31.9)
Net earnings (loss) per common share
Basic                                          $     0.44     $     (0.39)
Diluted                                        $     0.44     $     (0.39)
Adjusted net earnings (1)                      $     11.1     $      12.0
Total assets                                   $    892.8     $     917.1
Long-term debt and
derivative liabilities,
excluding current portion                      $    440.2     $     395.0

(1) EBITDA and adjusted net earnings are non-IFRS (international 
financial reporting standards) measures.

For the first quarter of 2013, Great Canadian Gaming recorded revenues of $100.5-million, a $2.3-million or 2-per-cent decrease from the first quarter of 2012. EBITDA was $38.3-million, a $700,000 or 2-per-cent decrease from the first quarter of 2012.

The decrease in consolidated revenues was primarily due to declines at the Boulevard Casino, the British Columbia racinos and the Nova Scotia casinos. The performance of these properties continues to reflect a prolonged period of weakness in their local economies. Declines at these properties were partially offset by both increased revenues at the other B.C. casinos and the continued strong performance of the River Rock Casino Resort.

The $700,000 decrease in EBITDA in the first quarter of 2013 was primarily due to the decline in the company's consolidated revenues. This decline was partially offset by improvements in the company's property, marketing and administration expenses. EBITDA as a percentage of revenues for the first quarter of 2013 was 38.1 per cent, a 0.2-percentage-point increase from the first quarter of 2012.

Net earnings increased by $63.2-million in the first quarter of 2013 when compared with the first quarter of 2012. This increase was due to the reversal of $28.5-million in non-cash impairment charges in the first quarter of 2013 associated with Georgian Downs and Flamboro Downs. These reversals were originally part of the $57.4-million non-cash impairment charges that the company recorded during the first quarter of 2012. The original impairments were triggered by the Ontario Lottery and Gaming Corp. providing notice that it was terminating the site holder agreements for the slot machine facilities at these two properties, effective March 31, 2013. Subsequent to March 31, 2013, Georgian Downs Ltd. received from OLG a one-time settlement payment of $31.5-million in connection with the Georgian Downs facility, and the company and Georgian Downs provided OLG with a release of claims. On March 9, 2013, the company signed letters of intent for five-year leases with OLG, which, if approved, would allow for OLG's operation of the slot facilities at both Georgian Downs and Flamboro Downs. The combination of signing the letters of intent for these leases and the subsequent receipt of the settlement payment resulted in this quarter's impairment reversals.

"We are pleased to have come to terms with the OLG on proposed lease arrangements for our Georgian Downs and Flamboro Downs properties," stated Rod Baker, Great Canadian's president and chief executive officer. "We are also pleased to have reached an arrangement with the Ontario government to receive the transitional funding necessary for live racing to continue at these two properties on an interim basis. While definitive lease agreements remain to be signed, we have been operating as though the key provisions of such agreements came into effect on April 1, 2013. Based on the terms of these lease arrangements and the anticipated racing schedules, both of which remain subject to government approvals, as well as our current internal assumptions regarding operating costs, our preliminary estimate of these properties' combined EBITDA for the 12-month period ending March 31, 2014, is approximately $10.0-million to $11.0-million. This compares to a combined EBITDA of $17.3-million recognized for the 12 months ended March 31, 2013.

"Our financial results for the first quarter of 2013 reflect positive contributions from both River Rock and our recently opened Chances Chilliwack. River Rock had yet another strong quarter, experiencing meaningful increases in both table drop and slot coin-in. While the property's table hold percentage was above average for the first quarter of 2013, it was 0.6 percentage points below the level recorded in the same period last year.

"Despite these encouraging performances, the majority of Great Canadian's properties continue to witness the impact of challenging local economies. During the first quarter of 2013, Boulevard witnessed declines in table drop, slot coin-in, and food and beverage revenues as a result of both weakened local economic conditions and disruption caused by a heightened level of proximate highway construction, including intermittent weekday and multiple weekend evening road closures affecting access to the property. We continue to focus on providing our most loyal guests exceptional service and memorable entertainment experiences during this construction. We anticipate that construction on the highway will conclude in the fourth quarter of 2013.

"Great Canadian is financially prepared to take advantage of new value-added growth opportunities, including those arising in Ontario. The company's financial flexibility is evident in both its cash balance and undrawn revolving credit facility. During March and early April of 2013, the company devoted $23.5-million of its cash resources toward repurchasing and cancelling 2.5 million common shares at an average price of $9.32, thereby increasing the ownership percentage of our existing shareholders by 3.6 per cent."

Great Canadian will host a conference call for investors and analysts today, May 8, 2013, at 2 p.m. Pacific Time to review the financial results for the period ended March 31, 2013. To participate in the conference call, please dial 416-764-8688 or toll-free at 888-390-0546 (passcode: 38196411). Questions will be reserved for institutional investors and analysts. Interested parties may also access the call through the investor relations section of the company's website; please allow 15 minutes to register and install any necessary software. A replay of the call will also be available at the company's website.

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