Mr. Rod Baker reports

GREAT CANADIAN GAMING ANNOUNCES FIRST QUARTER 2017 RESULTS

Great Canadian Gaming Corp. has released its financial results for the three-month period ended March 31, 2017.

First quarter 2017 highlights

• Revenues of $142.7-million increased by 9 per cent when compared with the same period in the prior year.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $48.2-million increased by 11 per cent when compared with the same period in the prior year.
• Shareholder net earnings of $17.8-million increased by 71 per cent when compared with the same period in the prior year. Shareholder net earnings per common share of 29 cents, increased by 81 per cent when compared with the same period in the prior year.
• Adjusted shareholder net earnings of $17.6-million, increased by 45 per cent when compared with the same period in the prior year. Adjusted shareholder net earnings per common share of 29 cents, increased by 53 per cent when compared with the same period in the prior year.
• Shorelines Casino in Belleville, Ont., opened on Jan. 11, 2017, one year after Great Canadian acquired the Ontario Lottery and Gaming Corp.'s (OLG) east gaming bundle. Shorelines Casino Belleville is the first new casino opened in Ontario since 2006.
• The company submitted bids on the request for proposals (RFPs) for OLG gaming bundle 1 (Ottawa) and gaming bundle 5 (Greater Toronto Area).
• The company is currently assessing OLG's RFP for gaming bundle 6 (West GTA), which is due July 13, 2017.
• The company has recently been prequalified to submit RFPs for OLG's gaming bundle 7 (central) and gaming bundle 8 (Niagara).

Great Canadian generated revenues of $142.7-million during the first quarter, an increase of 9 per cent when compared with the same period in the prior year. This increase was primarily due to the additional revenues from Shorelines Casino Belleville and nine additional days of revenues from Shorelines Casino Thousand Islands and Shorelines Slots at Kawartha Downs, which were acquired on Jan. 11, 2016. Additionally, Great Canadian has seen increases in revenue at all British Columbia and Atlantic properties, with the exception of River Rock Casino Resort and Great American Casinos.

Adjusted EBITDA during the first quarter was $48.2-million, an increase of 11 per cent when compared with the same period in the prior year. This improvement was primarily due to the previously mentioned additional revenues from Ontario, British Columbia and Atlantic properties, modestly offset by the decreases in River Rock and Great American Casinos.

Shareholder net earnings for the first quarter were $17.8-million, an increase of 71 per cent when compared with the same period in the prior year. The increase was primarily due to the improvement in adjusted EBITDA and a decline in business acquisition, restructuring and other costs. The increase was partially offset by increased amortization of Shorelines Casino Belleville's assets and higher income taxes. Adjusted shareholder net earnings per common share of 29 cents increased by 53 per cent when compared with the same period in the prior year due to a 45-per-cent increase in adjusted shareholder net earnings and a 5-per-cent reduction in weighted average number of shares outstanding following the repurchase of common shares during 2016.

"Great Canadian generated improvements to both revenues and adjusted EBITDA at the majority of its properties during the first quarter of 2017, when compared to the same period in the prior year," stated Rod Baker, the company's president and chief executive officer. "Great Canadian's revenues during the first quarter of 2017 also benefited from additional revenues attributable to Shorelines Casino Belleville that was opened in January, 2017.

"OLG's gaming modernization is progressing. In February, 2017, we submitted a bid for the Ottawa gaming bundle and, in April, 2017, we submitted a bid on the GTA gaming bundle. The company is currently assessing OLG's request for proposal for the West GTA gaming bundle. We anticipate OLG to announce the successful proponents for these three bundles in the spring, late summer and fall 2017, respectively. If successful, the company intends to be the sole owner and operator for Ottawa and to be an equity partner for GTA and majority partner for West GTA. In addition, we were recently notified that Great Canadian is prequalified to submit bids on OLG's request for proposals for Central gaming bundle and Niagara gaming bundle.

"We have made good progress at several of our properties that are undergoing renovations, expansions or rebranding. We look forward to having these projects completed over the course of 2017 to enhance guest experiences throughout our properties.

"Our business continues to perform well, notably boosted by our newest property, Shorelines Casino Belleville, which was opened this quarter ahead of schedule, in addition to the successful integration of the other two properties from OLG's east gaming bundle," concluded Mr. Baker. "Given our strong financial position, the company is well positioned to pursue other potential growth opportunities in Ontario and elsewhere."

Great Canadian will host a conference call for investors and analysts on May 9, 2017, at 5:30 a.m. Pacific Time, in order to review the financial results for the period ended March 31, 2017. To participate in the conference call, please dial 416-764-8688, 778-383-7413 or toll-free at 1-888-390-0546. Questions will be reserved for institutional investors and analysts. Interested parties may also access the call on 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 company's website.

About Great Canadian Gaming Corp.

Great Canadian Gaming operates gaming, entertainment and hospitality facilities in British Columbia, Ontario, New Brunswick, Nova Scotia and Washington State. The company has 21 gaming properties, which consist of 13 casinos (including a four-diamond resort hotel in Richmond, B.C., and a four-star hotel in Moncton, N.B.); four horse racetrack casinos; three community gaming centres; and one commercial bingo hall.

Please refer to the consolidated financial statements and management discussion and analysis on the company's website (available on May 8, 2017) or on SEDAR (available on May 9, 2017) for detailed financial information and analysis.

          FINANCIAL HIGHLIGHTS AND ADJUSTED SHAREHOLDER NET EARNINGS         
          (in millions of dollars, except for per-share information)
                                                                             
                                                        Three months ended March 31,
                                                             2017              2016

Revenues                                               $    142.7      $      131.5
Human resources                                              52.6              50.7
Property, marketing and administration                       42.5              37.9
Share of profit of equity investment                         (0.6)             (0.6)
                                                             94.5              88.0
Adjusted EBITDA                                         $    48.2       $      43.5
Adjusted EBITDA as a percentage of revenues                 33.8%             33.1%
Less
Amortization                                                 14.6              13.3
Share-based compensation                                      1.1               2.1
Impairment reversal of long-lived assets                     (0.9)                -
Interest and financing costs, net                             8.5               8.7
Business acquisition, restructuring and other                (0.2)              3.4
Foreign exchange loss and other                               0.2               1.0
Income taxes                                                  7.1               4.6
Shareholder net earnings                                $    17.8       $      10.4
Shareholder net earnings per common share
Basic                                                   $    0.29       $      0.16
Diluted                                                 $    0.29       $      0.16

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