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GTA Gaming Bundle Operator Selected

Published: August 8, 2017 9:54 am ET

Last Comment: August 8, 2017 12:37 pm ET | 1 Comment(s) | Jump to Comments

On Tuesday, August 8, the Ontario Lottery and Gaming Corp. announced that Ontario Gaming GTA LP (OGGLP) has been selected as the service provider for the GTA Gaming Bundle – which includes Woodbine Racetrack, Ajax Downs and the Great Blue Heron Casino – following a competitive procurement process. The Canadian partnership is comprised of Great Canadian Gaming Corporation and Brookfield Business Partners LP.

The OLG and Ontario Gaming GTA LP (OGGLP) have both issued press releases on the subject. The contents of those releases appear below.


OLG SELECTS SERVICE PROVIDER FOR GTA GAMING BUNDLE


Ontario Lottery and Gaming Corporation (OLG) has selected Ontario Gaming GTA LP (OGGLP) as the service provider for the GTA Gaming Bundle, following a competitive procurement process. The Canadian partnership is comprised of Great Canadian Gaming Corporation ('Great Canadian') and Brookfield Business Partners LP ('Brookfield Business Partners').

"OLG's land-based gaming modernization is bringing new employment and investment to communities across Ontario while improving our contribution to the Province," said Stephen Rigby, President and CEO, OLG. "OGGLP is a partnership that includes global leadership in infrastructure development combined with significant experience in world-class gaming, entertainment and hospitality development in Ontario and across North America."

"We thank OLG for the award of the GTA Bundle on behalf of the partnership," stated Rod N. Baker, Great Canadian's President and CEO. "Great Canadian has a long gaming history in Canada and Ontario and in collaboration with OLG and our partners to deliver gambling responsibly. We look forward to this historic opportunity to service Canada's largest metropolitan region."

"We are excited to have been selected by OLG to operate the GTA Bundle," said Cyrus Madon, CEO, Brookfield Business Partners. "We look forward to working closely with Great Canadian. We will bring our capabilities in operations, development and retail to the Partnership to deliver expanded gaming options and premier entertainment that will enhance the experience of patrons and contribute to the surrounding communities."

Great Canadian and Brookfield Business Partners will each hold a 49 per cent interest in OGGLP. Clairvest Group Inc. will hold a two per cent interest. Great Canadian will operate the gaming facilities within the GTA Bundle on behalf of the Partnership.

OLG has entered into a Transition and Asset Purchase Agreement with OGGLP for the GTA Gaming Bundle, which sets out the customary closing conditions to be satisfied for OLG and OGGLP to enter into a 22-year Casino Operating and Services Agreement (COSA). Under the COSA, OGGLP will take over day-to-day operations of OLG Slots at Woodbine Racetrack, OLG Slots at Ajax Downs and Great Blue Heron Casino.

OLG expects that the service provider will assume operations in early 2018. OGGLP is required to follow all applicable laws including AGCO's standards that require, among other things, rigorous Responsible Gambling (RG) policies and programs. OLG has an internationally recognized RG program and embeds its high standards for RG into the contracts it has with service providers.

Unionized employees will transfer to the service provider under the terms and conditions of their current collective agreement, per the Ontario Labour Relations Act. OGGLP will retain non-unionized employees for a period of no less than 12 months and will provide all eligible employees with benefits and a registered pension plan.

While OGGLP will be responsible for the day-to-day gaming operations in the bundle, OLG will:

  • Provide strategic oversight of the GTA Gaming Bundle and Ontario gaming marketplace—including approvals related to material operational changes

  • Conduct and manage gaming in the bundle

  • Require compliance with applicable regulations and standards set out by the Alcohol and Gaming Commission of Ontario (AGCO)

  • Be the owner of key player information

  • Require service providers to uphold the high standards of OLG's Responsible Gambling program, including the self-exclusion program

  • Make Contribution Agreement payments to host communities.

To OLG, the integrity of its procurement process is of the utmost importance.

Throughout the procurement process, OLG has engaged the services of a Fairness Monitor to provide oversight and advice.

At more than $2.3 billion annually, OLG provides the provincial government with its largest source of non-tax revenue. Modernization helps OLG provide more money to Ontario for key government services.

(Great Canadian Gaming Corporation)


GREAT CANADIAN GAMING AND BROOKFIELD AWARDED GTA BUNDLE IN ONTARIO GAMING MODERNIZATION PROCESS


Great Canadian Gaming Corporation (TSX:GC) ('Great Canadian') and Brookfield Business Partners L.P. (NYSE: BBU) (TSX:BBU.UN) ('Brookfield Business Partners') together with its institutional partners (collectively, 'Brookfield'), announce today that they have been selected as the successful proponent by the Ontario Lottery and Gaming Corporation ('OLG') to operate certain gaming facilities in the Greater Toronto Area (the 'GTA Bundle').

The GTA Bundle is the largest award by the OLG as part of the modernization of its casino operations. In 2016, its three facilities, OLG Slots at Woodbine, OLG Slots at Ajax Downs and Great Blue Heron Casino located in the Mississaugas of Scugog Island First Nation, generated gross gaming revenue of over $1 billion. These facilities have a combined total of over 4,000 slot machines, 60 table games and employ more than 2,200 staff.

As a result of this award, Great Canadian and Brookfield will acquire all the gaming assets in the GTA Bundle through a transition and asset purchase agreement with OLG, and will have the exclusive right to operate these assets for a minimum period of 22 years, in accordance with the requirements of a Casino Operating and Services Agreement.

Great Canadian and Brookfield will invest through a newly formed partnership, Ontario Gaming GTA LP (the 'Partnership'), with Great Canadian and Brookfield each holding a 49 per cent interest in the Partnership. Clairvest Group Inc. will hold a two per cent interest. Great Canadian will operate the gaming facilities within the GTA Bundle on behalf of the Partnership.

The Partnership will bring considerable gaming, urban redevelopment and hospitality expertise to the operations and strategic repositioning of the GTA Bundle. This development (subject to approvals) and modernization will include integrated property expansions that will enhance the gaming offerings to service the GTA market. It will also include leading world-class amenities consisting of state-of-the-art conference facilities, hotels and premier entertainment venues.

The Partnership will work closely with all vested stakeholders as it revitalizes the GTA Bundle to enhance guest experience for visitors from within the community, across the Province, and from around the world. The developments will increase local employment opportunities and bring significant economic benefit to the local communities and the Province of Ontario.

"We thank OLG for the award of the GTA Bundle on behalf of the partnership," stated Rod N. Baker, Great Canadian's President and CEO. "Great Canadian has a long gaming history in Canada and Ontario and in collaboration with OLG and our partners to deliver gambling responsibly. We look forward to this historic opportunity to service Canada's largest metropolitan region."

"We are excited to have been selected by OLG to operate the GTA Bundle," said Cyrus Madon, CEO, Brookfield Business Partners. "We look forward to working closely with Great Canadian. We will bring our capabilities in operations, development and retail to the Partnership to deliver expanded gaming options and premier entertainment that will enhance the experience of patrons and contribute to the surrounding communities."

The closing date for the acquisition of the assets and assumption of certain liabilities from OLG, including the signing of a casino operating and services agreement with OLG, is expected to be completed in early 2018, allowing for a seamless operational transition. Closing is subject to regulatory approvals and other customary conditions.

(Great Canadian / Brookfield Business Partners)

August 8, 2017 - 12:37 pmThis is akin to leasing the

Tim Bates SAID...

This is akin to leasing the 407, or privatizing the LCBO (which is slowly happening with wine and beer in grocery stores and boutique retailers).

The government is giving away profitable revenue generating businesses from the tax payers that built them to private organizations.

Good luck to us all.


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