OLG Reveals More Details On Plan
Published: June 11, 2012 6:53 pm ET
Last Comment: June 12, 2012 3:39 pm ET | 11 Comment(s) | Jump to Comments
On Monday, June 11, officials with the Ontario Lottery and Gaming Corp. spoke of the process to revitalize gaming across the province, equating the model to how the NHL or NBA franchise sports teams.
We’re looking for the right operators for each venue,” said Dr. Sam Heath, Vice President of Strategy for the OLG, while speaking at the Canadian Gaming Summit in Niagara Falls.
“In any of the zones where we have an existing site, we want to hear the expertise of whether or not that is the right site,” said Heath. “It will be up to operators whether they like the site we have or whether they’d like to operate a different site. In no case will we constrain an operator to a specific site.
“In our franchising model, I look at the OLG as the NBA or NHL,” said Heath. While there are certain rules that operators must follow, operators will have freedom on the site, how it is built, marketed, branded and operated. Operators can bid for one or multiple sites. Experience in gaming operations is being stressed
Heath also encouraged bidders to determine the funding model. “Tell us how you want to get paid,” he said. “We’ll pay operators a fee and they’ll be required to pay all capital and operating expenses,” He suggested a tiered commission and a fixed commission structure as two potential models.
OLG officials also gave a clearer indication of how the slot facilities currently operating at racetracks will be run after March 31, the announced end of the Slots at Racetracks program.
“As of March 31 of next year the arrangement with racetracks and horsepeople will come to an end,” said Larry Flynn, Senior Vice President, Gaming, OLG. “Where we currently have a slot facility at a racetrack, we are actively negotiating a lease to take us beyond April 1, 2013. We’re a tenant in all of those facilities
“We’ll be doing a short term lease,” continued Flynn. “The new operator (once they are determined through the RFP process) will take over operations at the facility we’re in until they build a new facility or if they decide to stay in that facility.”
OLG officials also indicated that while one casino is planned for Toronto, they are considering adding table games at other facilities that will serve the Greater Toronto Area. “We’d like to allow flexibility to put table games wherever they belong in the province,” said Heath.
During the RFI process, the OLG is strongly encouraging any interested parties and groups to submit questions and express concerns they have with any of the zones or parameters as set out by the OLG. That information will be the basis for the RFP which will follow this summer.