In
July, 1996, the Navegante Group was selected over 27 other
casino operators (many of whom are publicly traded) to
become the sole Agent for the Ontario Casino Corporation
to design, construct
and manage Casino Niagara in Niagara Falls, Ontario, Canada.
The core team of four
Navegante principals  arrived
in late July – one week prior to the official start of
the contract – to begin planning and developing the operation
of the casino as well as oversee the construction already
in progress. On December 9, 1996 - ahead of schedule and
within budget - a world-class casino opened to the public
to rave reviews with 3,200 employees, and all systems,
internal controls, procedures and necessary supplies in
place and fully operational.
Casino
Niagara is Ontario’s largest, and most recently opened
commercial casino, consisting of a total of 100,000 square
feet of gaming space, including over 2,600 slot machines
and 140 table games. It also has a premium players’ club
for high-limit play, and a frequent player's club which
offers members special rates at more than 100 businesses
throughout the Niagara region. In addition to its gaming
space, the casino complex offers a fine-dining restaurant,
a Hard Rock Cafe, a market-style restaurant, an informal
cafe, a food court and several gift shops.
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The
casino cost approximately CDN$180 million to develop,
and generated revenues in excess of  CDN$500
million in its first twelve months of operation with a
forty-five percent EBITDA margin. During the 1997 summer
season, the casino generated approximately CDN$48 million
per month in gross gaming revenue. It is considered by
industry experts to be one of the most profitable casinos
in the world today.
As
significant as its ability to generate revenues is the
economic impact Casino Niagara has had on the Niagara
Region. Hotel occupancy in Niagara Falls increased by
55% in January 1997, one month after the casino opened.
The tourism season has been stretched from a six month
per year industry to a year round industry. It is anticipated
that the region could increase the number of annual tourists
from 14 million to 30 million by the year 2002. One could
say that Casino Niagara has been the catalyst that saved
Niagara Falls from continued economic decline.
Under
the terms of the Request for Proposal, the interim operator
was prohibited from continuing to operate the casino on
a permanent basis and was required to turn over the keys
of the casino to the selected permanent operator.
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