The racino at the Charlottetown Driving Park is struggling, and the Atlantic Lottery Corporation is replacing some of its VLTs with slot machines with hopes of picking up business.

The racino was opened last August with expectations of it bringing in $3 million to $5 million a year, but it's becoming clear that far from meeting those targets, it's actually losing money.

The racino was meant to pick up the harness racing industry, but is having trouble holding its own.

That's why Atlantic Lottery Corporation told its staff Tuesday that it's replacing some of the 225 VLTs with slot machines.

Robert Bourgeois of ALC says customers want a more casino-like experience.

"They wanted slot machines that they were more familiar with and they were more comfortable with," says Bourgeois.

"So we will be introducing 30 slot machines that are similar to the different slot machines that are found in other similar facilities such as ours."

Bourgeois says the racino's poor performance has also led to job cuts. About 10 of 160 racino employees were laid off Tuesday. Other full-time staff had their hours cut from 40 a week to 32.

"[We] need to find operational efficiencies within our operations, and that has meant some staff has had to leave the company," he says.

"We've also announced changes to our different operations on the gaming floor."

Neither the Atlantic Lottery Corporation nor the province will say exactly how much the racino has lost.

Desperate and irresponsible

The head of Racino Watch says bringing 30 slot machines to the Island is a desperate and irresponsible move.

Leo Broderick says the new machines show the provincial government intends to turn the racino into a full fledged casino. He says casinos draw in more people, and create more problem gamblers.

Broderick does draw some hope, however, from the racino losing money in its first months of operation.

"We are facing a white elephant and I think to some extent that's a good thing because people are not going and gambling, as much as the government wanted Islanders to do that. So I think that's a good sign," he says.

Broderick thinks government should back away from gambling altogether and remove all VLTs from the province.