First Nation casino declares bankruptcy amid general casino decline, but will stay open.
Despite having recently made gambling news for all the wrong reasons by filing for bankruptcy protection, the Eagle River Casino near Edmonton will continue to serve players. The bankruptcy came as the result of an inefficient cost structure which made it difficult to turn a profit.
Darren Bieganek, a lawyer the Alexis First Nation which owns the casino, stated that Alexis will now use a different approach to managing the casino: “I think you’re going to see a very successful casino as it does generate good revenue,” he said. “It’s the cost of how this was run for the last several years that was the difficulty.”
Land-based casinos struggling in North America
The Eagle River is no exception to the downward trend facing brick-and-mortar casinos on the continent. Whether the result of competition from online casinos in Canada and the US or other factors, fewer and fewer people are visiting traditional establishments.
What is certain is that millions of people prefer the convenience of playing table games from the comfort of their own homes. In addition, online casinos are much cheaper to operate. Despite the best efforts of anti-online figures like Sheldon Adelson, things don’t bode well for land-based casinos.