New Private Operator to Be Selected for Ontario’s GTA Gambling Sites
Greater Toronto Area (GTA) gambling operations will soon be handed to a private operator that will be officially chosen by the government as Ontario looks to drive forward a recorded gambling boom in the province.
OLG Looking for a Private Operator
The Ontario Lottery and Gaming Corporation (OLG) is expected to select a business that will gain control over casinos and thousands of slot machines in the Greater Toronto Area for the next two decades.
The OLG is expected to choose a private operator within a few weeks and the announcement has already attracted foreign casino operators who are promising to add gambling profit to a thriving Toronto region.
It is said that at least three companies are heading into the final round of takeover negotiations. The interested companies bidding for the exclusive gambling deal include Canada’s Brookfield Asset management, American-based Ceasars Entertainment and Malaysian business conglomerate Genting Group.
The aforementioned companies are bidding for a chance to take over the gambling operations at Toronto’s Woodbine racetrack, Ajax Downs and the Great Blue Heron Casino in Port Perry. The OLG las labeled the Toronto’s market still largely undeserved, with slots at two horse-racing tracks and a rural casino an hour away from downtown.
The OLG expect the sale to allow a private operator to rebuild the sites in question and present them as full-fledged casinos. Additionally, the new operator is also expected to build a fourth gambling venue, although such changes would require a municipal permit.
A winner to this exclusive right would step in for a chance to earn a minimum of $72 million per year for full 22 years of the deal, that would also include 70% of the gambling revenue.
The OLG has tasked the interested parties with a challenge to set aggressive targets for increasing the revenue and improve the overall gambling operations in the GTA venues.