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OLG Responds To OHRIA

Published: June 3, 2013 5:29 pm ET

Last Comment: June 6, 2013 11:07 am ET | 8 Comment(s) | Jump to Comments

On Monday afternoon, Ontario Lottery & Gaming Corp. President & CEO Rod Phillips issued a letter to the horse racing industry addressing the concerns presented by the Ontario Horse Racing Industry Association late last week.

Phillips' letter appears below.

Re: OHRIA Sounds Alarm Over RFPQ, Sole Bundle Operators

OLG will be working closely with the Horse Racing Industry Transition Panel to integrate horse racing into Ontario's gaming strategy so I'm glad there is attention being paid to the issue. I’m writing to clarify a few issues that have been raised recently.

OLG's modernization of gaming is an opportunity to bring private sector expertise into our business. OLG’s procurement process was designed very carefully to ensure that it is fair and competitive.

In fact, OLG’s procurement process presents an opportunity for racetracks. Racetrack owners/operators may compete in this public procurement on the same basis as other vendors. Another option is for owners/operators to join with a larger consortium or group to become a partner in a gaming facility. This would mean generating additional revenue (beyond rent) from a facility on racetrack property.

OLG is grouping some of its gaming zones into gaming bundles. The bundles are designed to make the day-to-day operation of the businesses more efficient for service providers. As we know, customers tend to be drawn from geographic areas--and they often visit a number of facilities in the same region. So bundling will allow easier cross-marketing and cooperation between groups of facilities.

It’s important to note that Gaming Bundles will not mean the merging of current or proposed facilities, or Gaming Zones. There will be just one facility in each Gaming Zone.

As part of modernization, OLG is working with the government to ensure that horse racing is integrated with the provincial gaming strategy to ensure future revenue streams for the industry.

OLG is moving forward with approved government policy to help make Ontario’s lottery and gaming industry a long-term success.

When the modernization of lottery and gaming is complete, additional revenue will be available to help fund provincial priorities such as hospitals and municipal infrastructure. In addition, a modern OLG will help create thousands of jobs and drive more than $3 billion in capital investments across Ontario.


Rod Phillips
President and CEO

June 6, 2013 - 11:07 amCould not agree more Jack.And

john smith SAID...

Could not agree more Jack.And the hits just keep
on coming.Do not worry Doug it is not your computer
I am still trying to decode this gobbledy goop myself.
Last paragraph,is this not what the governments share
of the revenue sharing SARP was suppose to be already
There making this sound like this is something Brand
new,and presenting further statements to try and imply
that the previous pile of dung used by the liberals
about how they were subsidizing the horse industry
was true.
we all know it is and was a complete fabrication.
Do the right thing and reinstate SARP and expand on
the sites.You have hurt enough people OLG stop the
bleeding and put what works backDo not bite off your
nose to spite your face.

June 5, 2013 - 8:16 pmEnough talk, lets send Rod

Enough talk, lets send Rod Phillips down the same road as Paul Godfrey. This guy is only as good as the last guy he talked to. Bruce T. Winning

June 4, 2013 - 10:51 amThe more gobbldygook I hear

Dave Nicol SAID...

The more gobbldygook I hear from the OLG officials and their political superiors the more concerned I as a horse owner and taxpayer become. If I ever tell untruths it is far easier to admit it, and rectify any damage done. I have a simple suggestion, Why not admit cancelling the SARS program was a mistake and return to a profit making money maker for tens of thousands of Ontarians now unemployed? A bird in the hand was something we all learned as children,and it always seemed to work! Reducing the huge deficit by having more employment makes more sense than bigger tax loads to citizens who are supporting many who would sooner be supporting themselves! Not in Ontario! Pity!

June 3, 2013 - 10:56 pmLast paragraph sounds a lot

Roy Steele SAID...

Last paragraph sounds a lot like SLOTS AT RACETRACKS PROGRAM..... Provided security to horse racing, funds to local municipalities, employment at the slots and tracks. Thousands of jobs ....... Are we just going round in one big circle and getting dizzy.

June 3, 2013 - 7:50 pmOLG is talking about giving

OLG is talking about giving racing about 20% of what racing used to get !!

IMO simply not satisfactory !!

June 3, 2013 - 6:46 pmMore of the same nonsense we

Ian Dow SAID...

More of the same nonsense we got from Godfrey!

June 3, 2013 - 6:19 pmAnd what did Mr. Phillips

And what did Mr. Phillips say? I think I heard a lot of garble? Maybe its my computer?
Doug McIntosh

June 3, 2013 - 6:19 pmThank you Mr. Phillips for

Thank you Mr. Phillips for clarifying the intentions of the OLG's gaming strategy. However, I wish to point out several flaws in your plans. Firstly, the operators of these proposed casinos will be the US gambling syndicates who are well capitalized. So with profits going to the US, I fail to see how that benefits Ontario. Yes, racetracks may participate in the bidding process, but how many of them are sufficiently capitalized to do so. Not many. Secondly, the SARP generated a profit of over $1 Billion per year and if outside operators are brought in, they are not going to operate a casino for any less than 30% of the gross. Again, I do not see the advantage for the taxpayers of Ontario. Thirdly, by scrapping the SARP, adding at least 40,000 people to the unemployment ranks, who previously paid taxes, doesn't sound like good fiscal policy either. Fourthly, the OLG currently operates two casinos in Niagara Falls, one in Windsor and one in Point Edward..... none of which are making money. So how are these new ones going to survive or is the OLG going to bankroll them like they did Caesars in Windsor? Again, I fail to see the economic advantage. Finally, ONTARIO CAN NOT GAMBLE ITSELF OUT OF A DEFICIT. The only way that the deficit can be managed is thru job creation, sound and efficient management of financial resources (that doesn't mean wasting $600 million on cancelled gas plants) and policies that encourage small and big business. This will flourish the economy that will support hospitals, municipal infrastructure and education. We had a plan (SARP) that worked for both the gov't and rural Ontario. A sound philosophy of the past.... "if it ain't broke.... don't fix it."

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