Game Host Incorporated

• A established Hotel and Gaming company in Alberta

http://www.gamehost.ca/index.php

Beginnings• A publicly trade company Gamehost Inc. was originally a

income fund • The Fund began in June 2003 with operations at the

following properties– Boomtown Casino, Ft. McMurray– Great Northern Casino, Grand Prairie – Service Plus Inns & Suites, Grande Prairie – Deerfoot Inn and Casino, Calgary– Retail Complex, Grande Prairie

http://www.gamehost.ca/casinos.php

Growth

• Game Host Inc since its conversion from a income fund to a high yield paying corporation has paid consistent increasing distributions to its share holders

http://www.gamehost.ca/casinos.php

Leadership

• The following are the key personnel in GameHost Inc. Management

• David J. Will, Chief Executive Officer• Darcy J. Will, President• Elston J. Noren, Chief Operations Officer• Craig M. Thomas, CMA, Chief Financial Officer

Production• GameHost ‘s main products are:

– Lodging• Service Inn and Suites• Deerfoot Inn

– Food and Beverage• Hotel banquets • Food outlets

– Entertainment• Concerts• Fight events

– Gaming• Great Northern Casino• Boomtown Casino• Deerfoot Inn and Casino

Marketing

• GameHost Inc. has operations only in Alberta and markets extensively within the province

• Involved in additional tourism marketing for the greater Canadian market and International visitors

• Media Include:– Print– Radio– Public (Transit)

Supply and Demand Of Gambling

• Society has a demand for gambling and as a result legal gambling has flourished and has spread to new markets– Supply for gambling in Alberta has increased – Demand for gambling may decrease if wages

lower– Supply is controlled by the government– Increased demand has some negative social

impacts

Productivity

• Lodging– Rooms– Food and Beverage

• Outlets • Banquets

• Gaming– Government regulated slot machines– Property owned gambling tables

• Property Management– Real estate leasing

Pricing

• Lodging– Competitive yield management pricing • Food and beverage • Rooms

• Gaming Pricing strictly set by AGLC (Alberta Gaming and Liquor Commission)– Revenues gained from gaming offset food

and labour cost

Fixed and Variable Costs

• Fixed Costs– Labour– Rent– Equipment

• Variable Costs– Gaming Revenues

Profits and Profit MarginsConsolidated Statements of Income and Comprehensive

Income Twelve months ended December 31 Three months ended

December 31

2010 2009 2010 2009Revenue $63,673,477 $48,082,219 $18,180,079 $11,788,385

Operating Expenses $39,598,401 $28,357,092 $11,822,780 $7,334,211

Operating and Other Income $22,711,836 $(5,364,899) $(1,474,051) $219,799

Net and Comprehensive Income

$47,006,423 $10,009,470 $4,812,584 $4,634,091

http://www.gamehost.ca/documents/document/Q42010AFS.pdf

Competition

• Lodging business is monopolistic competition• Their strongest competitors–Grey Eagle Casino–Marriot–Gateway Casinos

• Competitive Advantages:– Vegas style casinos– Entertainment

Summary

• GameHost Inc. has effectively established itself as a provincial leader in lodging, gaming, real estate leasing and food and beverage services

• Gambling has reached a high saturation point and may lower future earnings

• The popularity of gambling with its high profit margins will continue to enhance the companies associated with GameHost and accentuate additional products and services

References

• http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=GH:CN

• http://www.gamehost.ca/• http://aglc.ca/useofproceeds/default.asp• http://ca.hotstocked.com/companies/g/game

host-inc-GH-6461.html• http://www.deerfootinn.com/casino.php?typ

e=high_limit_room• http://www.encyclopedia.com/doc/1G2-1838

500008.html• http://onlinecasinospotlight.com/2010/03/las

-vegas-casino-supply-exceeds-demand/