Mr. Rod Baker reports

GREAT CANADIAN GAMING ANNOUNCES SECOND QUARTER 2016 RESULTS

Great Canadian Gaming Corp. has released its financial results for the three-month period ended June 30, 2016.

Second quarter 2016 highlights:

• Revenue of $140.2-million, a 25-per-cent increase compared with the same period in the prior year;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $55.3-million, an 18-per-cent increase compared with the same period in the prior year;
• Adjusted shareholders' net earnings of $23.7-million, a 19-per-cent increase compared with the same period in the prior year;
• Repurchased and cancelled 4.7 million common shares at an average price of $17.57, increasing the ownership percentage of existing shareholders by 7.8 per cent;
• Construction is proceeding ahead of schedule for a new Shorelines casino in Belleville, Ont. The company anticipates completing construction of this property by the end of 2016.

                                           FINANCIAL HIGHLIGHTS
                      (in millions of dollars, except for per-share information)
  
                                  Three months ended June 30,           Six months ended June 30,    
                                       2016             2015                2016            2015 

Revenues                           $  140.2         $  112.1            $  271.1        $  221.1
Adjusted EBITDA                        55.3             46.9                98.8            88.0
Adjusted EBITDA as a 
percentage of revenues                39.4%            41.8%               36.4%           39.8% 
Shareholders' net earnings             22.8             19.1                33.2            35.2 
Shareholders' net earnings
per common share                                                     
Basic                                  0.37             0.27                0.52            0.51
Diluted                                0.36             0.27                0.52            0.49
Adjusted shareholders'
net earnings                           23.7             19.9                35.4            36.8 
                                                               

Great Canadian generated revenues of $140.2-million during the second quarter, an increase of 25 per cent compared with the same period in the prior year. This improvement was due to increases at each of the company's groups of properties, with the exception of River Rock casino resort. The growth at the company's Atlantic casinos and Ontario properties were due to the company's October, 2015, acquisition of Casino New Brunswick and January, 2016, acquisition of Ontario Lottery and Gaming Corp.'s Gaming Bundle 2 (East), which consists of Shorelines Casino Thousand Islands and Shorelines Slots at Kawartha Downs, collectively known as the Shorelines Casinos.

Adjusted EBITDA during the second quarter was $55.3-million, an increase of 18 per cent compared with the same period in the prior year. This improvement was primarily due to the improvements at each of the company's groups of properties, partially offset by a decrease at River Rock.

The company's adjusted shareholders' net earnings for the second quarter were $23.7-million, an increase of 19 per cent compared with the same period in the prior year. This increase was primarily due to the improvement in adjusted EBITDA, partially offset by increases in amortization expense, interest and financing costs, and income taxes.

"During the second quarter of 2016, Great Canadian generated improvements to revenues and adjusted EBITDA across our entire portfolio, partially offset by a revenue decline at River Rock casino resort. Great Canadian also benefitted from significant contributions from our recently acquired Casino New Brunswick and Shorelines Casinos properties," stated Rod Baker, the company's president and chief executive officer. "River Rock generated encouraging slot machine revenues during the second quarter, recording the highest slot win in the property's history. However, River Rock also experienced a decrease in table hold, primarily as a result of decreased high-limit table volumes."

"As a result of the acquisitions, Great Canadian has successfully diversified its revenue base, and we look forward to further diversification upon increasing our presence in New Brunswick and Ontario. This effort has already begun in Ontario, where we have initiated the construction of a new full-service casino and entertainment facility in the city of Belleville under the Shorelines brand targeted to reach completion by the end of 2016. This new facility will enable our Shorelines Casinos to better service our guests in this gaming market.

"During the second quarter, the company repurchased for cancellation 4.7 million common shares at an average price of $17.57. As a result, we increased the ownership percentage of our existing shareholders by 7.8 per cent over the course of the quarter.

"At the conclusion of the second quarter, Great Canadian remains in a strong financial position," concluded Mr. Baker. "As a result, the company remains well positioned to take advantage of new opportunities for value creation. While we continue to pursue other potential opportunities in Ontario and elsewhere, we will also continue to efficiently manage our operations and explore additional options to grow our business."

Great Canadian will host a conference call for investors and analysts today, Aug. 10, 2016, at 2 p.m. PT in order to review the financial results for the period ended June 30, 2016. To participate in the conference call, please dial 416-764-8688, 778-383-7413 or toll-free at 1-888-390-0546 (passcode is 31067662). Questions will be reserved for institutional investors and analysts. Interested parties may also access the call via the investor relations section of the company's website. Investors using the website should allow 15 minutes for the registration and installation of any necessary software. A replay of the call will also be available on the website.

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