'At question is the recording of expenses by the company to present its numbers in the best possible light. The article explained that the B.C. Government helps casino operators with expansion plans. If for example a company spends money to add slot machines it can apply for reimbursement. If approved by the B.C. Lottery Corp., the casino is allowed to keep an extra cut of gambling revenues until those costs are paid for.
However, it could take years to recover the investment but GCG books a portion of the money in advance using a variety of complicated assumptions and interest rates according to the report. This allows the company to report lower expenses and a rosier financial picture.
Marketing costs also figure into the equation. The casinos are required to pay into a marketing fund of B.C. Lottery Corp. These costs are expensed over time which allows the company to address $1.4 million in costs which don’t affect the bottom line today but will in the future.'
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