GCGC, OLG Sign ‘Definitive Agreements’

Published: November 29, 2013 05:49 pm EST

On Friday, November 29, Great Canadian Gaming Corporation announced that it has signed definitive lease agreements with the Ontario Lottery and Gaming Corporation for the continuation of slot operations at Great Canadian’s Georgian Downs and Flamboro Downs racetrack facilities.

Under the terms of these agreements, OLG will lease the slot machine areas at the Ontario Racetracks for a five-year term commencing April 1, 2013. Great Canadian and the OLG have previously been operating under signed non-binding letters of intent which replaced the previous site holder agreements that expired on March 31, 2013.

"We are pleased to have reached an agreement with Great Canadian for both their Flamboro and Georgian sites," said Rod Phillips, OLG's president and CEO. "This reflects our longstanding and positive relationship with Great Canadian."

"We are also pleased to have now entered into these definitive agreements with the OLG," stated Rod Baker, Great Canadian's president and CEO. "With definitive lease agreements now signed, we can look forward to the next chapter for our properties in Ontario and further developing our relationship with the OLG as the gaming industry in Ontario continues its evolution."

(GCGC)

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Comments

Dave,
GCGC does not get a share of the revenue, it's a base rent based on sqaure footage and we are led to believe it's far less than what was received inder SARP.

What's clear, if there is no slot agreement, there is no racetrack. Plain and simple. The tracks are using part of these funds to support racing outside of the OMAFRA funding models which requires them to do so. They are struggling as the industry rights itself.

Profit or not, tracks still have to make money to return to shareholders, Ag. socities or the towns they support.

GCGC put in over 100 million into the Ontario tracks, not a hope they have gotten it back based on the write downs that they took over the last few years.
The question is, why bother to race at all if you cant earn revenue and would be better off to be a landlord.

Who cares...this agreement only helps OLG to have a home for their slots for the next five years. Guess it is only good for OLG and the track owners.

Is anyone else interested in knowing what the cost to OLG is to rent that space for the Slots at tracks? I know I am & there is no transparency with the govt on what that is! Just wondering!

Chuck Ibey

Rod Baker president and CEO of Great Canadian Gaming Corporation has a responsibility to his corporation but signing a five year lease with the Ontario Lottery & Gaming Corporation that will run until April 1st 2018 to lease the slot machine areas at Georgian Downs and Flamboro Downs racetrack facilities removes any leverage that members of the Standarbred Race industry have to bring in my opinion equity back to an industry that has been decimated by our existing government. It would be nice to see the revenue share agreement between the OLG and the Great Canadian Gaming Corporation in their five year lease. If it were not for the Standarbred industry and the SARP program that was contracted between the government and the racetracks in Ontario the Great Canadian Gaming Corporation would not have been in talks with this government over a lucrative five year lease. How does the Great Canadian Gaming Corporation see this as a benefit for the standardbred race industry in Ontario? It is a shame when just the bottom line dictates the values of a corporation with no concern with the impact their decision has on the people who have shed their blood and tears to sustain an industry that has been around for years. If money continues to dictate the future of the Standardbred race industry by people in authority then we are headed in the wrong direction.

This again says nothing about horse racing. Georgian Downs is a very important piece of the horse racing integration into the OLG. Clearly that piece is not important enough finalize. 25 race dates at Georgian is a slap in the face to our industry. If the Premier and her OLG henchmen try this nonsense, she should be tarred and feathered.

Georg Leber-ICR Racing

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