On Wednesday, April 2, the Great Canadian Gaming Corp. issued a press release regarding the company joining the Standardbred Alliance in the Province of Ontario.
"We are excited to continue to host live horse racing at both Flamboro Downs and Georgian Downs," GCGC President and CEO Rod Baker said via release. "The finalization of these agreements is good news for the future of horse racing in Ontario. We are committed to working with the provincial government and the Standardbred Alliance on implementing a long-term, sustainable model for racing in the province."
The contents of Great Canadian’s release appear below.
Great Canadian Gaming Corporation [TSX:GC] ("Great Canadian" or "the Company") announced today that it has signed agreements with five other Ontario racetrack operators and the Ontario Racing Commission ("ORC") in support of the Horse Racing Partnership Plan that was previously announced by the Ontario Ministry of Agriculture and Food in October 2013. These agreements establish an unprecedented standardbred alliance (the "Standardbred Alliance") amongst a core group of race tracks centered around the concentrated horse supply in Central and South Western Ontario and provide better stability and clarity for all industry stakeholders.
The Standardbred Alliance members represent a three-tier racing hierarchy, 'Grass Roots' (Clinton Raceway, Hanover Raceway), 'Signature' (Flamboro Downs, Georgian Downs, Grand River Raceway and The Raceway at Western Fair) and 'Premier' (Mohawk Racetrack and Woodbine Racetrack). The Standardbred Alliance has worked closely with government, regulators and industry participants to develop a racing plan that will see a coordinated year-round racing calendar that is attractive to both foreign and domestic customers, provides for consistent purse levels at each track, and enables enhanced operational efficiencies among the tracks.
Under a new five-year horse racing program that will be administered by the ORC, the Company's Georgian Downs and Flamboro Downs racetracks will receive provincial funding for their racing purses. In addition, under the terms of the revenue sharing agreements amongst the Standardbred Alliance members, the racetracks' pari-mutuel revenues will be pooled and shared amongst the tracks. These agreements are not expected to have a material financial impact on the Company's Ontario Racetrack operations and have replaced the horse racing transition funding that was previously received by the Company's Ontario racetracks from the Government of Ontario during the twelve months ended March 31, 2014.
"We are excited to continue to host live horse racing at both Flamboro Downs and Georgian Downs," stated Mr. Rod N. Baker, Great Canadian's President and Chief Executive Officer. "The finalization of these agreements is good news for the future of horse racing in Ontario. We are committed to working with the provincial government and the Standardbred Alliance on implementing a long-term, sustainable model for racing in the province."