Shares of Great Canadian Gaming Corp. (TSX:GC) were down 1.29% in early afternoon trading on October 30th. The stock has steadily fallen from its all-time high of $35.34 reached in mid-September after British Columbia launched an investigation into money laundering at casino locations in Western Canada.
One of the reports indicates that the River Rock Casino in Richmond B.C. accepted $13.5 million in $20 bills in July 2015.
The Ontario Progressive Conservative party has called on the current provincial government to scuttle the deal in response to the investigation. For its part, the Great Canadian Gaming Corporation has denied any wrongdoing and is cooperating fully with the ongoing investigation. The company has been vocal in pointing out that it initially reported the suspicious activity. OLG has noted that the company is not under a criminal or regulatory investigation.
The initial announcement of the multibillion dollar deal saw the stock soar in early August. The deal gives Great Canadian Gaming and its partner Brookfield Business Partners LP a 22-year monopoly on gambling in the Greater Toronto Area. A $1 billion investment to modernize locations in the area has been planned, including a possible fourth casino to be added at a new site in the city.
Great Canadian Gaming stock has climbed 22.9% in 2017 and 37% year over year. The reigning Ontario Liberals have said they are monitoring the situation closely but no retroactive measures appear to be imminent. The original deal is extremely promising and will bring monster revenue to Great Canadian Gaming over the next 2 decades. This is a good stock to buy on the dip.
