The private casino operator British Columbia-based Gateway Entertainment & Casinos is proceeding with plans for taking over and upgrading certain Ontario Lottery and Gaming Corporation gambling operations. Gateway announced it will invest more than 0 million to upgrade or build new casinos in the northeast, including a deal with True North Strong to put a million casino on the Kingsway in Sudbury as part of the proposed event center. In the southwest, Gateway said it will invest 0 million in London’s Western Fair district, including upgrading the London racino.
Gateway recently signed a letter of intent with Dario Zulich’s True North Strong to become part of the proposed development. Gateway Senior Vice President and Managing Director for Ontario Keith Andrews said, “Gateway is very excited to take this important step forward in bringing a major investment and up to 250 new jobs to Greater Sudbury. The True North Strong proposal envisions creating a vibrant regional entertainment district. A Gateway property in the district is a perfect complement to this dynamic development.”
True North Strong President Dario Zulich said, “Gateway Casinos & Entertainment Limited is the leading gaming and entertainment operator in Canada. We believe that when combined with a new event center and hotel/convention space, this new, full-service, upscale casino will be a valuable and exciting addition that will complete a multifaceted regional entertainment district.”
If the True North project goes ahead, gaming operations would be transferred to the Kingsway from Chelmsford. Municipal consent still is required for the project to move forward. Gateway spokesperson Carrie Kormos said, “We think it makes sense to put these two major investments on the same piece of property. But we’re going to let the city go through their process and see where they ultimately decide to put the event center and then we’ll be able to make some final decisions.” The Sudbury city council is expected to make a decision later this month between the Kingsway and downtown properties.
The proposed casino and entertainment center will feature “a spectacular gaming floor and multiple dining and culinary options to suit any taste,” according to company press release. Besides the proposed casino, the True North center project would include a hotel, convention center, motorsports park and 6,000-seat event center. Construction is expected to be completed in spring 2020.
Gateway too over day-to-day operations at the Thunder Bay, Sudbury and Sault Ste. Marie casinos on May 30. Its agreement with the OLG also calls for constructing new casinos in North Bay and Kenora.
Gateway also announced it will invest $200 million in London’s Western Fair district and other Southwestern Ontario operations. Plans include expanding London’s casino, adding craps, roulette, blackjack and 450 additional slots, plus dining options and a hotel. The project will increase employment in London from 350 to 1,000.
Kormos noted the expanded London casino, currently a modest racetrack slots lounge, will not be a “destination.” She said, “We rely on the numbers and what makes sense. It’s important to have the right mix of amenities and the scale appropriate to the community.” Kormos said the addition of restaurants, a hotel and new table games will enhance the casino’s appeal to younger people. “The slots-in-a-box format is not a sustainable business model because it only appeals to certain kind of customer,” Kormos stated.
The London facility opened amid a public uproar in the 1990s. In a non-binding 1997 referendum, London voters rejected a smaller, full-blown charity casino. More than 64,000 were opposed, compared to 30,352 in favor. Then-council member Cheryl Miller said gambling was new to London then. “There weren’t many places to gamble back then. Now, you can gamble online in your living room. I’m not expecting much pushback” the London casino expansion, she said, noting, “You can’t put the toothpaste back in the tube.”
Ward 12 Councillor Harold Usher, expressing concern about the expanded casino, said, “We are looking to draw a lot of people into that casino that can ill afford it.” He added, “The public should have some say in this. We need to ensure we publicize it, so we don’t get into the same situations as the bus rapid transit plan,” which caused complaints that the public wasn’t sufficiently consulted.
Ward 4 Councillor Jesse Helmer said he’s trying to arrange a meeting with Gateway officials to get more details about the casino. “The sooner we get the detail the better. There needs to be full public engagement on casino expansion.” He said his constituents are divided between those who are concerned about the casino expansion and others who would welcome more jobs.
Casino host communities like London receive a share of revenue from provincial gaming operations.
Gateway is the largest and most diversified gaming company in Canada, with operations in British Columbia, Edmonton and Ontario. The company employs more than 6,100 people and operates 26 gaming properties with 286 tables, more than 9,800 slots, 57 restaurants and bars and 272 hotel rooms.
