On Tuesday (December 19), the Ontario Lottery and Gaming Corp. announced that it has selected 'Ontario Gaming West GTA Limited Partnership' as the service provider for the West GTA Gaming Bundle.
The West GTA Bundle includes OLG Casino Brantford, OLG Slots at Mohawk Racetrack, OLG Slots at Flamboro Downs, and OLG Slots at Grand River Raceway.
According to a release from the OLG, the Ontario Gaming West GTA Limited Partnership (OGWGLP) consists of the Great Canadian Gaming Corporation and Clairvest Group Inc. The OLG has announced that Great Canadian will operate the gaming facilities within the West GTA Bundle on behalf of the partnership.
The OLG and Great Canadian have both issued press releases in regard to the matter. The contents of the OLG release appear below, followed by the contents of the Great Canadian release.
OLG SELECTS SERVICE PROVIDER FOR WEST GTA GAMING BUNDLE
Ontario Lottery and Gaming Corporation (OLG) has selected Ontario Gaming West GTA Limited Partnership (OGWGLP) as the service provider for the West GTA Gaming Bundle, following a competitive procurement process. OGWGLP consists of Great Canadian Gaming Corporation ("Great Canadian") and Clairvest Group Inc. Great Canadian will operate the gaming facilities within the West GTA Bundle on behalf of the partnership.
The West GTA bundle includes:
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OLG Casino Brantford
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OLG Slots at Mohawk Racetrack
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OLG Slots at Flamboro Downs
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OLG Slots at Grand River Raceway
"OLG is bringing economic development and innovative entertainment to the west GTA region by selecting OGWGLP as the service provider for the bundle," said Stephen Rigby, OLG's President and CEO. "OGWGLP's expertise and significant investment will help create up to 1,650 jobs while providing customers with exciting new entertainment options in newly-improved facilities.
Great Canadian is an established gaming and horse racing operator that will build strong relationships with local communities, employees, stakeholders and the horse racing industry. We are confident Great Canadian will operate the bundle in a responsible way."
"Being awarded the West GTA Bundle is a true milestone for Great Canadian and the Partnership. We thank OLG for their confidence in our company and for providing us the opportunity to showcase and apply our gaming, racing and hospitality expertise to the selected properties," said Rod N. Baker, Great Canadian's President and CEO. "As a Canadian company that has a long history of responsibly and successfully operating gaming and racing facilities across Canada, we are both eager and excited to undertake what we feel will be a dramatic transformation of the gaming experience at these four properties, for the teams that work there, and the communities they reside in."
"We are thrilled that OLG has selected the Partnership as the service provider for the West GTA Bundle. Together with Great Canadian, we are confident in our ability to deliver a unique and spectacular gaming and entertainment experience at the four properties within the bundle," said Jeff Parr, Co-Chief Executive Officer and Managing Director of Clairvest Group Inc.
To OLG, the integrity of its procurement process is of the utmost importance.
In order to ensure an open and transparent process for all proponents, OLG has engaged the services of an impartial Fairness Monitor to advise throughout the process and provide oversight on the fairness of the procurement.
While OGWGLP will be responsible for the day-to-day gaming operations in the bundle, OLG will continue to:
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Provide strategic oversight of the West GTA Gaming Bundle and Ontario gaming marketplace—including approvals related to material changes to the business
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Conduct and manage gaming in the bundle
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Require compliance with applicable regulations and standards set out by the Alcohol and Gaming Commission of Ontario (AGCO)
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Be the owner of key player information
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Require service providers to uphold the high standards of OLG's Responsible Gambling program, including the self-exclusion program
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Make Municipality Contribution Agreement payments to host communities
OLG employees will transfer to the new service provider and OLG will work with OGWGLP to ensure they have as smooth a transition as possible. This includes a requirement for the service provider to retain employees for a period of no less than 12 months in their current position and geographic location. OGWGLP will also be required to provide eligible employees with benefits and a registered pension plan.
OLG has entered into a Transition and Asset Purchase Agreement with OGWGLP for the West GTA Gaming Bundle, which sets out the customary closing conditions to be satisfied for OLG and OGWGLP to enter into a 20-year Casino Operating and Services Agreement (COSA). OGWGLP is required to follow all applicable laws including AGCO's regulated standards which require, among other things, rigorous Responsible Gambling policies and programs.
OLG expects that the service provider will take over day-to-day operations in spring 2018.
Founded in 1982, Great Canadian Gaming Corporation is a BC based company that operates 22 gaming, entertainment and hospitality facilities in British Columbia, Ontario, New Brunswick, Nova Scotia, and Washington State. Fundamental to the company's culture is its commitment to social responsibility. "PROUD of our people, our business, our community" is Great Canadian's brand that unifies the company's community, volunteering and social responsibility efforts. Under the PROUD program, Great Canadian annually invests over $2.5 million in our communities, and in 2016, over 1,500 charitable organizations were supported by Great Canadian. In each Canadian gaming jurisdiction, a significant portion of gross gaming revenue from gaming facilities is retained by our crown partners on behalf of their provincial government for the purpose of supporting programs like healthcare, education and social services.
Clairvest Group Inc. is a private equity investor which invests its own capital, and that of third parties through the Clairvest Equity Partners ("CEP") limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
OLG is the Ontario government agency that delivers gaming entertainment in a socially responsible manner. OLG conducts and manages gaming facilities, the sale of province-wide lottery games, PlayOLG Internet gaming, the delivery of bingo and other electronic gaming products at Charitable Gaming Centres and is helping to build a more sustainable horse racing industry in Ontario. Since 1975, OLG has provided nearly $47 billion to the Province and the people of Ontario. These payments to the province support the operation of hospitals, amateur sport through the Quest for Gold program, local and provincial charities and problem gambling prevention, treatment and research.
(OLG)
GREAT CANADIAN GAMING AND CLAIRVEST GROUP INC. AWARDED WEST GTA BUNDLE IN ONTARIO GAMING MODERNIZATION PROCESS
Great Canadian Gaming Corporation (TSX:GC) ("Great Canadian") and Clairvest Group Inc. (TSX:CVG) ("Clairvest") 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 West Greater Toronto Area (the "West GTA Bundle").
The West GTA Bundle is comprised of OLG Casino Brantford, OLG Slots at Mohawk Racetrack, OLG Slots at Flamboro Downs and OLG Slots at Grand River Raceway. These facilities have a combined total of over 2,500 slot machines, approximately 60 table games, employ more than 1,400 staff, and generated approximately $450 million in gross gaming revenue in fiscal 2017.
Great Canadian and Clairvest will invest through a newly formed partnership, Ontario Gaming West GTA Limited Partnership (the "Partnership"), with Great Canadian owning 55 per cent and Clairvest owning 45 per cent. Great Canadian will develop and operate the gaming facilities within the West GTA Bundle on behalf of the Partnership.
As a result of this award, the Partnership will acquire all the gaming assets in the West GTA Bundle and will enter into leases for each of the facilities. It will have the exclusive right to operate these assets for a minimum period of 20 years, in accordance with the requirements of a Casino Operating and Services Agreement. The closing will be completed under the terms of a Transition and Asset Purchase Agreement entered into with OLG.
With years of gaming, racing, hospitality, and development expertise, the Partnership will provide strategic vision and operational modernization that will add extensive non-gaming amenities and expanded gaming offerings to ensure properties in the West GTA Bundle deliver a premier gaming and entertainment experience. The Partnership intends on a significant capital investment in each of the four properties to expand and reposition them that at full build out will create up to 1650 new jobs in gaming, entertainment, and hospitality, while also ensuring each property appeals to a wide spectrum of the marketplace.
The Partnership envisions dramatic enhancements and additions at Mohawk, Flamboro Downs, and Grand River that will create a seamless and integrated experience for the guest for racing, gaming and hospitality, while undertaking a significant top-to-bottom renovation of the Brantford facility.
With years of experience in horse racing in Ontario and other jurisdictions, the Partnership looks forward to collaborating with racing industry stakeholders to work toward the ongoing sustainability of horse racing in the West GTA marketplace. The Partnership also recognizes the significance of these properties in their local communities, and appreciates the importance of engaging early with local community leaders, stakeholder groups, and First Nations.
"Being awarded the West GTA Bundle is a true milestone for Great Canadian and the Partnership. We thank OLG for their confidence in our company and for providing us the opportunity to showcase and apply our gaming, racing, hospitality and development expertise to the selected properties," said Rod N. Baker, Great Canadian's President and CEO. "As a Canadian company that has a long history of responsibly and successfully operating gaming and racing facilities across Canada, we are excited to undertake what we feel will be a dramatic transformation of the entertainment experience at these four properties, for the teams that work there, and the communities they reside in."
Baker continued, "With our longstanding role in horse racing, we appreciate the significance and importance of the harness racing industry provincially, but more particularly, across the West GTA region. We're eager not only to embark upon our exciting development plans for the four properties, but also for the role we feel we can play in working with track operators, racing stakeholders, OLG, the provincial government and other interested parties in sustaining the industry and growing the number of jobs the industry supports."
"We are thrilled that OLG has selected the Partnership as the service provider for the West GTA Bundle. Together with Great Canadian, we are confident in our ability to deliver a unique and spectacular gaming and entertainment experience at the four properties within the bundle," said Jeff Parr, Co-Chief Executive Officer and Managing Director of Clairvest Group Inc.
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 in spring 2018, allowing for a seamless operational transition. Closing is subject to regulatory approvals and other customary conditions.
About Great Canadian Gaming Corporation:
Founded in 1982, Great Canadian Gaming Corporation is a BC based company that operates 22 gaming, entertainment and hospitality facilities in British Columbia, Ontario, New Brunswick, Nova Scotia, and Washington State. Fundamental to the company's culture is its commitment to social responsibility. "PROUD of our people, our business, our community" is Great Canadian's brand that unifies the company's community, volunteering and social responsibility efforts. Under the PROUD program, Great Canadian annually invests over $2.5 million in our communities, and in 2016, over 1,500 charitable organizations were supported by Great Canadian. In each Canadian gaming jurisdiction, a significant portion of gross gaming revenue from gaming facilities is retained by our crown partners on behalf of their provincial government for the purpose of supporting programs like healthcare, education and social services.
About Clairvest Group Inc.:
Clairvest Group Inc. is a private equity investor which invests its own capital, and that of third parties through the Clairvest Equity Partners ("CEP") limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
(Great Canadian Gaming Corporation)