Concerns Arise As Casino Niagara Turns 20

Casino Niagara (l.) in Ontario recently turned 20, and operator Falls Management Group announced a $5.3 million facelift there in partnership with the Ontario Lottery and Gaming Corporation. But OLG won't renew FMG's contract past 2019, and Niagara Falls NDP MPP Wayne Gates asked Premier Kathleen Wynne to delay the search for a new operator.

As Casino Niagara in Niagara Falls, Ontario, turned 20 years old, Falls Management Group Operations Vice-President Richard Taylor announced the casino will have a .3 million facelift, including .5 million for new casino-floor technology. FMG, which operates the casino, and the Ontario Lottery and Gaming Corporation will partner in the project. Built in 1996, the property originally was meant to be a temporary casino until a permanent facility was built.

“The investment will help us lead the Casino Niagara into the future with new gaming technology, new dining experiences and enhanced customer experience,” Taylor said. FMG also operates the nearby, larger Niagara Fallsview Casino Resort which opened in 2004. Currently, Ontario receives $22 million annually as host to the two gaming facilities.

OLG Gaming Senior Vice President John MacFarlane said, “Here at the Casino Niagara, we’re in the process of upgrading some of the food and beverage offerings and other parts of the facility. Early in the new year, we will start upgrading the gaming floor and casino entrances and will continue to improve the food and beverage offerings to the customers.”

In honor of its 20th anniversary, Casino Niagara also donated more than $75,000 to be shared by five local charity organizations.

However, as the celebrations were going on, concern was growing over selecting a new operator for the two Niagara Falls casinos, since the OLG announced it would not renew its contract with FMG when it expires June 10, 2019. The OLG said it would take up to three years to procure a service provider for the Niagara Gaming Bundle.

OLG issued a request for pre-qualification with a December 15 deadline. But Niagara Falls NDP MPP Wayne Gates recently requested that Premier Kathleen Wynne delay the process for a new service provider. “Will the premier commit to delay the RFP and the RFPQ process to allow for it to be re-written, giving greater weight to the job creation, investment, economic development and job protection?” Gates asked.

Gates said the process should be delayed because, “Unfortunately, the way the request for pre-qualification and the RFP process is being run, we know that the big-name gaming companies aren’t going to bid. If they don’t bid, less people will travel from Toronto and that will put 1,500 good jobs in Niagara on the chopping block.”

Gates noted the Niagara Falls city council has passed three unanimous resolutions and the Niagara Region council also recently passed a resolution supporting the process, “but they want to make sure that the whole region gets the economic benefit.” Gates added, “We only have one chance to get it done and we want to get it done right. We need a major player.”

Mayor Jim Diodati also stated, “We need to remind the province, the Number 1 part of their mandate is jobs. Number 2 is economic development and then Number 3 is revenue for the province. That was their mandate and we need to remind them to respect that.”

In response to Gates, Minister of Finance Charles Sousa said the province is having ongoing discussions “about this very issue, recognizing how important it is for us to modernize Fallsview and Casino Niagara, as requested by council. It’s all about building and creating more jobs and helping the economy in the local community. It’s why we proceeded to go this way, again at their request.” He said the RFPQ, as it currently stands, references job creation and protection. “We’re going to proceed in a transparent and fair procurement process, as requested and as indicated to city council. We’ll continue to work with them, recognizing how important it is to the local community and, frankly, to the province of Ontario,” Sousa said.

OLG Senior Manager of Media Relations Tony Bitonti stated it would be “inappropriate” for the agency to comment on the concerns raised by Gates and Niagara Falls. “To OLG, the integrity of the procurement process is of the utmost importance. OLG is following the Government of Ontario’s procurement guidelines to ensure that the process to find qualified service providers to operate OLG’s gaming business in Niagara Falls and all across the province is fair and competitive.” Bitonti added a “fairness monitor” will provide oversight on “integrity and fairness” throughout the procurement process.