Canadian Casino Expansion C$49 Million Over Budget
Friday 13th June 2008
As if C$49 million was only a drop in the ocean, Kelly McDougald of the Ontario Lottery and Gaming Corp admitted that the Caesars Windsor Casino, formerly the Casino Windsor, came in at a final cost of C$439 which was around about 10% over the 2005 budget for the venture. While the ‘slight’ budget increase is not as bad as it might look, with projects often going 10% over budget in the construction industry, this is not the whole story.
The venture is set to open on Thursday and while everything is fine for the big day there are rumours that a number of the rooms are unfinished and the top floor of Windsor’s largest building has been left empty for the time being. However, when you consider the size of the venture and the major changes in financial markets over the last few months, the over shoot on the budget and ‘rescheduling’ of some work could have been a lot worse.
Unfortunately, the venture is set to open at a time when casino numbers are falling, money is tight and the rising cost of finance may curtail any plans to ‘finish off’ areas of the development. The Canadian casino market has performed fairly well over recent times, but like all other markets there are signs of a slowdown.
As if C$49 million was only a drop in the ocean, Kelly McDougald of the Ontario Lottery and Gaming Corp admitted that the Caesars Windsor Casino, formerly the Casino Windsor, came in at a final cost of C$439 which was around about 10% over the 2005 budget for the venture. While the ‘slight’ budget increase is not as bad as it might look, with projects often going 10% over budget in the construction industry, this is not the whole story.