GREAT CANADIAN GAMING ANNOUNCES THIRD QUARTER 2010 RESULTS

RICHMOND, BC, Nov. 10 /CNW/ - Great Canadian Gaming Corporation [TSX:GC] ("the Company") announces its financial results for the three month period ended September 30, 2010 ("third quarter of 2010").

2010 THIRD QUARTER HIGHLIGHTS
(Amounts presented in $millions, except for per share information)

• Revenues of $96.3 million, $0.3 million increase from the third quarter of 2009
  
  
• EBITDA of $35.0 million, $0.8 million increase from the third quarter of 2009
  
  
• EBITDA margin of 36.3%, 0.7 percentage point increase from the third quarter of 2009

	Third Quarter				First Nine Months of
	2010	2009	% Chg		2010	2009	% Chg
Revenues	$     96.3	$     96.0	0%		$    286.3	$    285.9	0%
EBITDA ^(1)	$     35.0	$     34.2	2%		$    101.4	$     93.6	8%
EBITDA as a % of Revenues	36.3%	35.6%			35.4%	32.7%
Shareholders' net earnings ^(2)	$       5.9	$       9.5	(38%)		$     19.8	$     13.7	45%
Shareholders' net earnings per common share:
Basic	$     0.07	$     0.12			$     0.24	$     0.17
Diluted	$     0.07	$     0.11			$     0.23	$     0.17
Total assets					$ 1,006.6	$ 1,017.2	(1%)
Long-term debt, excluding current portion					$    337.5	$    391.8	(14%)
Derivative liabilities					$     56.9	$     51.9	10%

(1)

EBITDA is a non-GAAP measure and is defined in the Disclaimer section of this press release.

(2)

Shareholders' net earnings decreased by $3.6 in the third quarter of 2010, when compared to the third quarter of 2009. The decrease was primarily due to increased amortization and restructuring and other expenses, and were partially offset by the EBITDA improvement and lower income taxes. Shareholders' net earnings increased by $6.1 in the first nine months of 2010, when compared to the first nine months of 2009. The increase was primarily due to both the EBITDA improvement and a reduction of $8.4 in restructuring and other expenses, which were partially offset by increases in amortization and income taxes.

During the third quarter of 2010, Great Canadian Gaming recorded revenues of $96.3 million and EBITDA of $35.0 million, both of which were relatively consistent when compared to the third quarter of 2009.

Revenues at the Company's River Rock Casino Resort ("River Rock") increased by $3.7 million, when compared to the third quarter of 2009. This increase can be attributed to the opening of the Canada Line transit system during the third quarter of 2009 and the completion of River Rock's redevelopments and enhancements during the fourth quarter of 2009 and first quarter of 2010. These factors have improved both gaming and hospitality revenues at the property. River Rock's increased revenues were offset by several factors. These factors included decreased revenues at both the Boulevard Casino and the BC Racinos, the latter of which related primarily to the deconsolidation of TBC Teletheatre BC.

The Company's EBITDA for the third quarter of 2010 benefitted from the increase in River Rock's revenues, which were partially offset by an EBITDA decline of $1.2 million at the Boulevard Casino.

EBITDA as a percentage of revenues for the third quarter of 2010 was 36.3%, a level relatively consistent with the third quarter of 2009. This was primarily due to both the increase in River Rock's revenues and the expense reductions implemented throughout 2009.

"Great Canadian's financial results for the third quarter of 2010 provide an accurate picture of both the strengths and weaknesses currently present within our business," stated Ross J. McLeod, Great Canadian's Chairman and Chief Executive Officer. "While the River Rock Casino Resort once again produced significant top-line growth, many of our other properties continue to experience obstacles to revenue recovery within their respective markets. Most notable among these is the Boulevard Casino, where construction disruption, the economy, and competition have combined to create persistent revenue pressure.

"Great Canadian's revenue challenges highlight the need for continued expense management across our property portfolio. This need is especially critical given the significance of human resources expenses within our cost structure. Both inflationary increases and the need to offer our employees competitive compensation ensure that these expenses will increase over time. The impact of this increase is obviously more significant in a challenging revenue environment. While improvements in efficiency can somewhat mitigate this impact, they cannot substitute for revenue recovery.

"As I have mentioned in the past, a major component of our strategy for this revenue recovery is the improvement of both our properties and their offerings. Much of this improvement has taken place at River Rock, which continues to benefit from both its recent redevelopments and the opening of the Canada Line last year. In an effort to both maximize this benefit and leverage the high quality of River Rock's offerings, we have elected to recommence construction of the property's third hotel tower. This five-storey tower will add 193 rooms to River Rock's hotel capacity, and create an additional driver for both hospitality and gaming volumes at the property. We anticipate opening this tower during the fourth quarter of 2011, and that completing its construction will require further costs of approximately $26.0 million.

"This hotel tower is an example of how growth opportunities continue to exist within British Columbia. Another of these opportunities exists at the Maple Ridge Community Gaming Centre, where 100 slot machines commenced operation on October 15. I am optimistic about the prospects of this new market."

Mr. McLeod concluded, "Both Maple Ridge and the River Rock hotel tower are investments made possible by Great Canadian's secure and flexible financial position. Given our cautious outlook towards many of our markets' futures, this flexibility remains critical. By maintaining it, we will ensure that we are able to not only pursue new opportunities, but also fortify our business should our markets experience further weakness."

Great Canadian will host a conference call for investors and analysts today, November 10, 2010, at 2:00 PM Pacific Time to review the financial results for the period ended September 30, 2010. To participate in the conference call, please dial 647-427-7450, or toll free at 888-231-8191. Questions will be reserved for institutional investors and analysts. Interested parties may also access the call on the Internet at www.gcgaming.com; please allow 15 minutes to register and install any necessary software. A replay of the call will also be available at www.gcgaming.com.

ABOUT GREAT CANADIAN GAMING CORPORATION

Great Canadian Gaming Corporation is a multi-jurisdictional gaming and entertainment operator with operations in British Columbia, Ontario and Nova Scotia, and Washington State. The Company operates ten casinos, a thoroughbred racetrack that offers slot machines, three standardbred racetracks (two offer slot machines and one offers both slot machines and table games), two community gaming centres, a hotel and conference centre, two show theatres and various associated food and beverage and entertainment facilities. As of September 30, 2010, the Company had approximately 3,900 employees in Canada and 600 in Washington State. Further information is available on the Company's website, www.gcgaming.com.

Please refer to the Consolidated Annual Financial Statements and Management's Discussion and Analysis ("MD&A") at www.gcgaming.com (available on November 10, 2010) or www.sedar.com (available on November 12, 2010) for detailed financial information and analysis.

The financial results on the following pages are unaudited and prepared by management. Amounts are in millions, except for per share information.

GREAT CANADIAN GAMING CORPORATION
Interim Consolidated Results of Operations
(Unaudited - Dollar amounts expressed in millions, except for per share information)

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		Third Quarter				First Nine Months of
		2010	2009	% Chg		2010	2009	% Chg
Gaming revenues		$      70.3	$      67.7	4%		$    205.7	$    202.0	2%
Facility Development Commission		7.5	7.2	4%		22.2	21.9	1%
Hospitality and other revenues		16.6	16.3	2%		49.5	48.1	3%
Racetrack revenues		5.3	7.4	(28%)		17.9	22.1	(19%)
		99.7	98.6	1%		295.3	294.1	0%
Less: Promotional allowances		(3.4)	(2.6)	31%		(9.0)	(8.2)	10%
Revenues		96.3	96.0	0%		286.3	285.9	0%
Human resources		38.8	38.2	2%		115.5	118.8	(3%)
Property, marketing and administration		22.5	23.6	(5%)		69.4	73.5	(6%)
		61.3	61.8	(1%)		184.9	192.3	(4%)
EBITDA		35.0	34.2	2%		101.4	93.6	8%
Human resources as a % of Revenues before Promotional allowances		38.9%	38.7%			39.1%	40.4%
EBITDA as a % of Revenues		36.3%	35.6%			35.4%	32.7%
Amortization		13.7	11.9			41.8	35.1
Stock-based compensation		0.9	0.9			4.5	4.0
Restructuring and other		4.1	0.5			4.2	12.6
Interest and financing costs, net		7.8	7.7			21.9	21.9
Other expenses		-	0.2			0.7	1.6
Income taxes		2.6	3.5			8.5	4.7
Shareholders' net earnings		$         5.9	$         9.5	(38%)		$      19.8	$      13.7	45%
Shareholders' net earnings per common share:
	Basic	$      0.07	$      0.12			$      0.24	$      0.17
	Diluted	$      0.07	$      0.11			$      0.23	$      0.17
Weighted average number of common shares (in thousands):
	Basic	82,743	82,199			82,587	82,126
	Diluted	84,335	83,909			84,306	82,770

GREAT CANADIAN GAMING CORPORATION
Interim Consolidated Statements of Financial Position
(Unaudited - Dollar amounts expressed in millions)

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				September 30,		December 31,
				2010		2009
ASSETS
CURRENT
		Cash and cash equivalents		$               70.2		$               34.6
		Restricted cash		5.7		5.6
		Accounts receivable		5.4		7.3
		Due from Nova Scotia Gaming Corporation		2.5		1.7
		Prepaids, deposits and other assets		9.1		7.2
				92.9		56.4
Property, plant and equipment				711.7		735.6
Intangible assets				159.5		167.6
Goodwill				38.9		37.9
Future income taxes				0.5		2.0
Other assets				3.1		4.6
				$          1,006.6		$          1,004.1
LIABILITIES
CURRENT
		Accounts payable and accrued liabilities		$               49.0		$               63.4
		Income taxes payable		1.8		0.1
		Long-term debt, deferred credits and other liabilities, current		3.1		2.9
				53.9		66.4
Long-term debt				337.5		356.9
Derivative liabilities				56.9		50.8
Deferred credits and other liabilities				28.6		27.0
Future income taxes				69.6		68.6
				546.5		569.7
SHAREHOLDERS' EQUITY
Share capital and contributed surplus				353.1		347.6
Accumulated other comprehensive loss				(10.0)		(10.4)
Retained earnings				117.0		97.2
				460.1		434.4
				$          1,006.6		$          1,004.1

DISCLAIMER

This news release contains certain "forward-looking information" or statements within the meaning of applicable securities legislation. Forward-looking information is based on the Company's current expectations, estimates, projections and assumptions that were made by the Company in light of its historical trends and other factors. All information or statements, other than statements of historical fact, are forward-looking information including statements that address expectations, estimates or projections about the future, the Company's strategy for growth, expected future expenditures, costs, operating and financial results and expected impact of future commitments. Such forward-looking information is not a guarantee of future performance and may involve a number of risks and uncertainties. Although forward-looking information is based on information and assumptions that the Company believes are current, reasonable and complete, they are subject to a number of factors that could cause actual results to vary materially from those expressed or implied by such forward-looking information. Such factors may include, but are not limited to: terms of operational service agreements with lottery corporations; changes to gaming laws that may impact our operational service agreements; pending, proposed or unanticipated regulatory or policy changes; impact of global liquidity and credit availability; adverse tourism trends and further decreases in levels of travel, leisure and consumer spending; competition from established competitors and new entrants in the gaming business; dependence on key personnel; the risk that systems, procedures and controls may not be adequate to support current and expanding operations; potential undisclosed liabilities and capital expenditures associated with acquisitions; negative connotations linked to the gaming industry; First Nations claims with respect to some Crown land on which we conduct our operations; future or current legal proceedings; construction disruptions; financial covenants associated with credit facilities and long-term debt; credit, liquidity and market risks associated with our financial instruments; interest and exchange rate fluctuations; non-realization of cost reductions and synergies; demand for new products and services; fluctuations in operating results; and economic uncertainty and financial market volatility. These factors and other risks and uncertainties are discussed in the Company's continuous disclosure documents filed with the Canadian securities regulatory authorities from time to time, including in the "Risk Factors" section of the Company's Annual Information Form for fiscal 2009, and as identified in the Company's disclosure record on SEDAR at www.sedar.com. The forward-looking information in documents incorporated by reference speak only as of the date of those documents. Readers are cautioned not to place undue reliance on the forward-looking information, as there can be no assurance that the plans, intentions, or expectations upon which they are based will occur. The Company undertakes no obligation to publicly revise forward-looking information to reflect subsequent events or circumstances except as required by law. The forward-looking information contained herein is made as of the date hereof and is expressly qualified in its entirety by cautionary statements in this news release.

The Company has included non-generally accepted accounting principles ("non-GAAP") measures in this news release. EBITDA as defined by the Company means Earnings Before Interest and financing costs (net of interest income), Income Taxes, Depreciation and Amortization, stock-based compensation, restructuring and other costs, foreign exchange gain (loss), and non-controlling interests. EBITDA is derived from the consolidated statements of earnings, and can be computed as revenues less human resources expenses and property, marketing and administration expenses.

Readers are cautioned that these non-GAAP definitions are not recognized measures under Canadian GAAP, do not have standardized meanings prescribed by GAAP, and should not be construed to be alternatives to net earnings determined in accordance with GAAP or as indicators of performance or liquidity or cash flows. The Company's method of calculating these measures may differ from methods used by other entities and accordingly our measures may not be comparable to similarly titled measures used by other entities or in other jurisdictions. The Company uses these measures because it believes they provide useful information to both management and investors with respect to the operating and financial performance of the Company.

ON BEHALF OF

GREAT CANADIAN GAMING CORPORATION

"Original Signed By Rod Baker"

Rod Baker
President

For further information:

GREAT CANADIAN GAMING CORPORATION [TSX:GC]
Suite #350 - 13775 Commerce Parkway
Richmond, BC
V6V 2V4
[phone]
Website: www.gcgaming.com

For investor enquiries:
Mr. Nathan Sellyn
Director, Corporate Development & Investor Relations
[phone], [email protected]

For media enquiries:
Mr. Howard Blank
Vice-President, Communications, Entertainment & Responsible Gaming
[phone]