PURE operates four casinos; two in Edmonton, one in Calgary and one in Lethbridge.
Investment
C$112 million
Fund
ONCAP II, ONCAP III
Period
May 2011 - December 2024
ONCAP Team
Transaction Summary
ONCAP acquired PURE Canadian Gaming ("PURE", previously known as Casino ABS) in May 2011 from the estate of the company's founder.
Business Description
Based in Edmonton, Alberta, PURE operates four casinos; two in Edmonton, one in Calgary and one in Lethbridge operating a total of approximately 2,700 slot machines, 94 table games, 36 poker tables and 110 video lottery terminals along with associated food and beverage and entertainment offerings. PURE’s operations can be segmented as follows: (i) Gaming– revenue from slots (cash played), table games (drop & hold) and poker rake; (ii) Restaurant– selling food and beverages through bars and restaurants located at the four casino properties at value prices; and (iii) Other – includes revenue from ATM operations and other gaming activities (e.g. lottery, off-track-betting).
Accomplishment and Outcome
ONCAP was attracted to PURE's leading market position, regional diversification and strong cash flow characteristics in a stable and highly regulated sector with significant barriers to entry.
ONCAP, in partnership with the management team was able to create value at the company, uphold leading market position in the Alberta gaming market, and achieve consistent revenue growth over the ownership period through a variety of initiatives including i) rebranding Casino ABS to PURE Canadian Gaming, ii) significant investment across all properties to enhance customer gaming experience and optimize casino layouts, iii) strengthening senior management team and upgrading talent across the organization, iv) upgrading operational and IT infrastructure while establishing a business intelligence & analytics team, and v) completing a sale leaseback of PURE’s real estate at all four casinos.
In December of 2024, ONCAP completed the sale of PURE to Indigenous Gaming Partners.