Page 70 - 2007_2008_Annual_Report

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SASKATCHEWAN INDIAN GAMING AUTHORITY
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8. Due to Saskatchewan Liquor and Gaming Authority:
2008
2007
Net income related to slot operations
(Note 14)
$ 72,115,563
$ 54,475,549
Net loss related to table operations
(Note 14)
(1,105,650)
(767,184)
Net loss related to ancillary operations
(Note 14)
(6,143,347)
(3,091,382)
Indigenous Gaming Regulators Inc.
(Note 14)
(2,925,230)
(1,780,065)
Saskatoon Prairieland Park Corporation
(Note 14)
(1,670,432)
60,270,904
48,836,918
Balance, beginning of year
24,874,031
17,845,486
Capital reserve
(Note 1)
5,000,000
Payments to Saskatchewan Liquor and Gaming Authority
(52,339,507)
(41,808,373)
Balance, end of year
$ 37,805,428
$ 24,874,031
Also, $4,739,028 (2007 – $3,488,373) due to SLGA for slot machine and operating system
reimbursement is included in accounts payable and accrued liabilities.
9. Accounts Payable and Accrued Liabilities:
SIGA is required to pay SLGA an amount equivalent to the imputed goods and services tax (GST) that is
payable by SLGA on gaming expenses incurred by SIGA related to its slot machine operations. Included
in accounts payable and accrued liabilities are amounts owing to SLGA for imputed goods and services
tax of $983,701 (2007 – $1,148,967).
10. Long-Term Debt:
New Casino Projects Financing
In 2006, SIGA entered into an agreement with a financial institution (Bank) to provide $20 million in
bridge financing for the construction of the Dakota Dunes Casino. The bridge loan was repayable on
demand or upon SIGA entering into a long-term financing arrangement with the Bank.
In 2007, SIGA entered into a long-term financing agreement with the Bank for $79 million to finance all of
its new casino projects. The Bank syndicated this financing with a secondary lender to provide SIGA with
$20 million. The Bank, as the lead lender, is providing SIGA with the remaining $59 million. In 2007, SIGA
used the secondary lender’s $20 million to repay the bridge financing. SIGA will amortize this loan over
the next 15 years with a 5.68% fixed interest rate for the next 6.5 years. This loan is referred to as Term
Loan Tranche D – Fixed Rate.
SIGA is drawing on the remaining approved financing to complete the construction of new casinos.
During construction of the new casinos, SIGA’s interim financing from the Bank is by way of either
a prime rate advance or a bankers’ acceptance. During the construction phase of each project, SIGA
only pays interest monthly on the outstanding balance. Upon completion of construction, outstanding
amounts for each project are converted to long-term loans. The final terms of the long-term loans are
determined upon the completion of construction.
S A S K A T C H E WA N I N D I A N G A M I N G A U T H O R I T Y I N C .
Notes to the Consolidated Financial Statements
Year ended March 31, 2008