Following a competitive procurement process, Ontario Lottery and Gaming Corporation selected a group headed by Great Canadian Gaming Corporation, the Ontario Gaming East Limited Partnership, as the service provider for Gaming Bundle 2, one of three gaming zones in the East Gaming Bundle. The Ontario Gaming East partnership will pay .4 million cash plus another million in expenses in return for a 20-year agreement with OLG to operate existing betting facilities at Thousand Islands casino near Kingston and the slots operation at Kawartha Downs in Peterborough.
The contract also allows Ontario Gaming East to build a new casino in Belleville or Quinte West. However, Quinte West Mayor Jim Harrison said he told OLG officials there isn’t any land in Quinte that is suitable for a gaming facility and the city is not interested in applying for a license. Chuck Keeling, vice president of stakeholder relations and responsible gaming at Great Canadian Gaming, said the company hopes to have a new or expanded facility ready to open by the fall of 2017.
“This will be a new build and all about finding the local talent and skill set to operate this facility instead of trying to bring in a bunch out-of-town people who don’t know the community and the marketplace.” As part of the agreement, current employees must keep their present positions, must not be relocated for a minimum of a year, and full benefits must be provided to those eligible, according to the OLG announcement.
Great Canadian President and Chief Executive Officer Rod N. Baker said, “We thank OLG for the opportunity to participate in the modernization of gaming in Ontario and are both honored and excited to have been awarded this first gaming bundle. Great Canadian has been involved in gaming in Canada since 1982 and in Ontario horse racing at our Flamboro Downs and Georgian Downs properties since 2005. We look forward to this next chapter in the company’s history and the opportunity to collaborate with the OLG and local municipalities to provide exciting entertainment experiences for each of the communities of the East Gaming Bundle. We are very excited to welcome OLG employees at the existing locations and we look forward to working with them after the anticipated completion of the acquisition early next year.”
OLG said a smooth transition is expected in early 2016. OLG will remain as the owner of key player information and will be responsible for compliance with laws, regulations and payments to local communities.
OLG President and Chief Executive Officer Stephen Rigby said the announcement “marks an important milestone in OLG’s
modernization and the future of our organization. As the service provider for the East Gaming Bundle, the investments Ontario Gaming East LP will make will help move modernization forward while ensuring we continue to deliver an exceptional experience for our customers.”
Great Canadian Gaming, a publicly traded company headquartered in Richmond, British Columbia, owns 50.1 per cent of the Ontario Gaming East Limited Partnership. It operates 16 gaming, hospitality and entertainment facilities in Washington State, British Columbia, Ontario and Nova Scotia with approximate 4,500 employees.
OLG is a the Ontario agency responsible for province-wide lottery games and gaming facilities. Since 1975, OLG has provided nearly $40 billion to the province of Ontario. OLG’s annual payments to the province have helped support health care; education, research, prevention and treatment of problem gambling; amateur sports; and local and provincial charities.
