Great Canadian Gaming Corporation recently announced the Ontario Gaming East Limited Partnership has completed the previously announced acquisition of Ontario Lottery and Gaming Corporation’s Gaming Bundle 2 for .3 million. The acquisition includes certain gaming assets, working capital of approximately .3 million and applicable taxes related to the transaction, as well as Shorelines Casino Thousand Islands, Shorelines Slots at Kawartha Downs in the East Gaming Bundle and a proposed gaming property in Belleville.
The partnership signed a 20-year casino operating and services agreement with OLG, renewable at OLG’s option for additional consecutive terms of 10 years each.
Rod N. Baker, Great Canadian president and chief executive officer, said, “Great Canadian is pleased to now own 90.5 percent of its Ontario Gaming East LP subsidiary, an increase from the previous 50.1 percent share it held. We were already managing the day-to-day operations and property development plans of our subsidiary, so this was a great opportunity to increase our economic interest in an already exciting investment opportunity. The additional 40.4 percent of partnership units were obtained on the same economic terms as the company invested for its original 50.1 percent share.”
Baker added, “It is an honor to be the first private sector owner and operator under OLG’s Gaming Modernization Program. We thank OLG for this opportunity and are looking forward to future opportunities to collaborate with OLG through the ongoing modernization of gaming in the Province.”
Under the agreement, the partnership will provide OLG a pre-established, guaranteed annual gaming revenue threshold amount plus 30 percent of gross gaming revenue above that threshold annually. In exchange, the partnership will receive an annual service provider fee of $15 million annually before the Belleville facility is opened, increasing to $24 million per year thereafter, 70 percent of gross gaming revenue above the OLG threshold and a fixed amount for capital expenditures. The partnership also keeps all non-gaming revenues, including those from food and beverage and entertainment.
Andy LaCroix, executive director, Ontario Operations, Ontario Gaming East LP, said, “Over the last four months, we have worked very closely with OLG to ensure that the transition process is complete and successful for all stakeholders. We are excited about delivering great entertainment amenities and memorable experiences to our guests, welcoming our new colleagues, and becoming an active community participant in the Eastern Ontario region.”
