"I ran the largest racetrack operation in the world for Frank Stronach for eight years. I know a little something about what casinos want. There's no casino operator in the world that's going to take only 20 per cent for investing and putting up a casino in downtown Toronto. Those casinos will want at least 30 per cent."
Racing Future CEO Dennis Mills recently discussed the impending consequences of the McGuinty Government's plans to withdraw from the Slots-At-Racetracks Program on Newstalk 1010 with Jim Richards. Mills is baffled as to why the Ontario Liberals would simply walk away from a partnership that contributes over $1.1 billion into the treasury.
"We keep coming back to this word 'subsidy'. I'm looking out my window and I see the Air Canada Centre. Every single one of those boxes that are bought by corporations to help sustain the Toronto Maple Leafs are tax write-offs. That is like a tax grant, there isn't a business in our city that doesn't receive some form of government assistance. And what the horse industry contributes in rural Ontario, for grain growers and farriers, blacksmiths, for 55,000 people...exporting our brand all over the world."
The discussions also broaches a downtown Toronto casino, which Mills points out would take at least three years to complete. This move doesn't compute with Mills, as the government is then losing out on guaranteed revenue from the slots-at-racetracks program in the meantime.
"I'm not against a downtown Toronto casino to stimulate our conventions and our tourism and everything else, but you can have both. You do not need to destroy rural Ontario by shutting down the partnership.
"Very few city people understand the contribution that rural people make to the whole economy of Ontario. Let's face it, very few city people and a lot of your listeners just don't understand the cycle and the system of how rural Ontario functions. We're now appealing to city people to get engaged in this debate and hopefully they can talk to their city MPPs and let's sustain the sport."
Richards even agreed with Mills and went so far as to say "It didn't add up...I don't see the math on how this helps them get anywhere."
The full interview is available below.
A crucial point here is that
A crucial point here is that there is absolutely no guarantee as to the level of profits that an "Iconic" privately run Casino in downtown Toronto (or any other Ontario city) will provide to the Ontario Government.
The Private Casino operators (MGM, Ceasars, Vagas Sands etc) are interested in Ontario to make profits for THEMSELVES.
OLG's own reports have shown that the Slots at Race Tracks program has been far more profitable than the the four privately run resort casinos.
A recent Standardbred Canada article noted that NY State Racinos have provided contributions to the State in the 1st 6 months of 2012 that are almost double the amount of revenue provided by full fledged private casinos in Atlanta and the Vegas strip combined.
Mr Mills is correct ... it's a mystery ... What is McGuinty not telling the people of Ontario ?
I see exactly what Mr. Mills
I see exactly what Mr. Mills says--The Govt. could have both of the two streams of money coming in.
1) the money from SAR business
2) the casino money if an agreement is made.
The SAR dollars could provide a "cushion" if one was needed.As it stands now, the SAR money is not going to come in.
Could this be the case?? Could the Govt. have enough money from ehealth and ORNGE to finance their casino wishes?
If they use "iffy" money, they will fail. No business will prosper if wrong money is used for financing.
But hey, 200 million per year
But hey, 200 million per year in Ontario for Methadone! Drug addicts over business in rural Ontario!
Right on Peggy. When it
Right on Peggy. When it doesn't make any sense to anyone who looks at it, it leads one to believe that there is something that smells of collusion, conspiracy, corruption, etc. McGuinty, Duncan and Godfrey sitting on one side of the table with the casino and bingo hall owners on the other cooking up deals that will kill a prosperous industry for all of Ontario. I've shown the Auditor General of Ontario's chart done in 2010 - Net Revenue to OLG from Operations (by Revenue Category)- to several accountants and financial experts. None could see the sense in eliminating the one part of gaming that is at the top of the chart and climbing while expanding the other part that is consistently losing money and spiraling downward. The crimial connections that appear to be associated with casino owners leaves one to believe that our government will cut deals with any sort to get themselves out of trouble. We've already seen the outrageous deals that they've made with the past head of Hydro One, Eleanor Clitheroe, to get rid of her, Dr. Mazza of ORNGE to keep him quiet, the gas plant in Mississauga that was halted and moved to get two MPPs into power, enticing Ms. Wittmer with a cushy job so they could attempt to win a Liberal seat in a by-election in KW, etc., etc. No wonder we are so sceptical of politics and our politicians.
The only logical reason for
The only logical reason for the government wakling away from SAR,a program that contributed billions to the economy of Ontario, for destroying the lives of well over 60,000 people and causing the death of thousands of horses, is that our government has already made a deal with the devil,(meaning the USA casino owners)and they don't want any competion. That also includes horse racing.
The Liberals have found 245
The Liberals have found 245 Million dollars of FREE money and will put it anywhere but back with the rightful owners. I would do the same if I was spending someone else's money. Governments via a Crown corporation (OLG) DO NOT sign contracts with various stakeholders of an industry to subsidize them.
Our representatives need to start taking the gloves off or step down and let someone else take it to the government.
This false perception, that the Liberals are pulling a subsidy from horseracing needs to be overcome and defined for what it is, REVENUE SHARING.
The Liberals want the milk but won't pay for the cow...They fully intend on leaving the slots at the tracks but won't pay the horseman on April 1, 2013. Must be nice to live in LA LA land. UNLESS WE START FIGHTING FOR WHAT IS RIGHTFULLY OURS, they will take it along with our jobs,savings and houses.