HLT Advisory Case Study
Alberta Gaming and Liquor Commission: Casino Service Provider Compensation Review (2012)
HLT was retained by the Alberta Gaming and Liquor Commission (“AGLC”) to develop an analytical framework/financial model to review the appropriateness of the current compensation of Alberta’s casino service providers (“Operators”) and to recommend adjustments, as necessary.
To address the AGLC’s objectives, HLT:
- Conducted a multi-jurisdictional review of casino operator compensation models across North America.
- Reviewed existing Alberta Operator financial statements to gain an understanding of financial results and position of each Operator, as well as identifying issues that might arise throughout the review.
- Gathered relevant financial data from each Operator covering a three-year period in order to assess individual Operator profitability levels and financial position.
- Compiled the Operator results from the reporting package in a model that provided for a comparable review of financial results.
- Provided benchmarking results between Operators of relevant financial performance indicators.
The results of the review provided AGLC with both a comprehensive view of the current financial health of its casino operators, as well as a framework and method to regularly monitor this financial performance.