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OLG Terminates Siteholder Agreements

Published: March 30, 2012 11:24 pm ET

Last Comment: April 4, 2012 10:13 am ET | 1 Comment(s) | Jump to Comments

The Ontario Lottery and Gaming Corporation (OLG) has notified Kawartha Downs as well as Great Canadian Gaming Corporation's Georgian Downs and Flamboro Downs that their siteholder agreements will be terminated.

According to an article in the Peterborough Examiner, Kawartha Downs has received its notice that the OLG will end its siteholder agreement effective March 31, 2013.

In an effort to privitise its gaming facilities, the OLG will be seeking business proposals for the slots machines. Requests for information are expected to be sent out within the next month while requests for proposals are expected be sent out by the fall.

Kawartha Downs could put forth their own proposal for the slot machines, but if the track decides to do so it may be in competition with others seeking to move the slots to another location, pending approval of their business plans and the host municipality.

Great Canadian Gaming Corporation (GCGC) also announced today in a news release that it has received notice from the OLG that siteholder agreements with Georgian Downs and Flamboro Downs subsidiaries will be terminated effective March 31, 2013. All of the terms and conditions of the siteholder agreements will continue in full force and effect until March 31, 2013, including the obligation to continue live horse racing events at the racetracks.

GCGC stated in the release that it is currently studying the implications of this notice. OLG previously announced that they will engage in negotiations on new arrangements for OLG and/or private sector vendors to occupy space at racetrack locations where there is customer interest. As such, there may be an opportunity for GCGC to enter into future negotiations with the OLG regarding the operation of slot machines at the Georgian Downs and Flamboro Downs racetrack locations. If the OLG does not enter into new agreements with GCGC, then the future profitability of Georgian Downs and Flamboro Downs will be negatively affected and goodwill and long-lived asset impairments will be necessary.

During the year ended December 31, 2011, Georgian Downs and Flamboro Downs generated a combined $34.4 million in revenues and $17.4 million in EBITDA.

GCGC executives are planning to meet with the OLG to discuss both the risks to the their existing operations and the potential future opportunities that may arise from the Province's continued modernization of gaming in Ontario.

(With files from GCGC & the Peterborough Examiner)

April 4, 2012 - 10:13 amThis looks familiar. Perhaps

Norman Hall SAID...

This looks familiar. Perhaps another Billion lawsuit landed on their table might get a positive reaction

TORONTO - Ontario's Liberal government said Tuesday it would defend itself against a $1-billion lawsuit over its moratorium on offshore wind farms, the second such action over the province's energy policies.

The SouthPoint Wind suit filed in Ontario Superior Court names the province, three provincial ministries, Environment Canada, Hydro One and the Ontario Power Authority.

The company is claiming $1 billion in damages for confiscation of its property and assets, $100 million for failure to negotiate in good faith, and another $100 million for punitive, aggravated and exemplary damages.

SouthPoint tried to develop industrial wind power projects near the Lake Erie communities of Leamington, Union and Kingsville before the government announced a moratorium on offshore wind farms in February 2011.

In its statement of claim filed March 21 in Windsor, Ont., the company said the government acted "deliberately and deceptively" when it cancelled applications for offshore wind development.

"No prior notice was ever made to SPW of these defendants' decision to cancel or confiscate the offshore development sites," the company claims.

"Previous site-specific environmental studies and reports completed at great expense to SPW were rendered useless."


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