The Ontario Lottery and Gaming Corporation and Gateway Casinos & Entertainment Limited each announced today (Tuesday, May 9) that Gateway has signed a 20-year Casino Operating and Services Agreement with the OLG and has purchased the business and assets of the Southwest Gaming Bundle. Gateway has taken over day-to-day operations and the assets of the Southwest Gaming Bundle, effective today.
Gateway and the OLG each issued press releases regarding the matter today. The contents of the releases appear below.
OLG signs 20-year Casino Operating and Services Agreement with Gateway Casinos & Entertainment Limited for Southwest Gaming Bundle Assets
Ontario Lottery and Gaming Corporation (OLG) has signed a 20-year Casino Operating and Services Agreement (COSA) with Gateway Casinos & Entertainment Limited (Gateway). Under the agreement, Gateway takes over day-to-day operations and the assets of the Southwest Gaming Bundle, effective today (May 9, 2017).
The Southwest Gaming Bundle includes:
• OLG Slots at Western Fair District
• OLG Slots at Clinton Raceway
• OLG Slots at Dresden Raceway
• OLG Slots at Hanover Raceway
• OLG Slots at Woodstock Raceway
• OLG Casino Point Edward
On December 13, 2016, OLG announced it had selected Gateway as the service provider for the Southwest Gaming Bundle. Since then, OLG and Gateway have been working towards concluding a Transition and Asset Purchase Agreement and entering into the COSA.
OLG has worked with Gateway to help ensure that transferring employees have a smooth and seamless transition. This includes the requirement for Gateway to retain transferring employees for a period of no less than 12 months in their current position and geographic location, and to provide eligible employees with benefits and a registered pension plan.
At more than $2.2 billion annually, OLG provides the Ontario government with its largest source of non-tax revenue. Modernization helps OLG provide more money to Ontario for key government services.
(OLG)
Gateway Casinos & Entertainment Becomes Canada's Largest and Most Diversified Gaming and Entertainment Company with Ontario Expansion
Gateway Casinos & Entertainment Limited ("Gateway") has signed a 20-year Casino Operating and Services Agreement (COSA) with the Ontario Lottery and Gaming Corporation ("OLG") and has purchased the business and assets of the Southwest Gaming Bundle. Gateway will take over the day-to-day operations effective today. The expansion into Ontario represents the next exciting chapter in Gateway's successful growth strategy making Gateway Canada's largest and most diversified gaming company.
"Today is a very exciting day and an important milestone for Gateway as we expand our footprint into Ontario with the completion of the transition process in Southwestern Ontario. We thank the OLG for the hard work throughout the transition process and we look forward to our long-term partnership," said Tony Santo, Gateway's Chief Executive Officer. "On behalf of our 4,200 employees in Western Canada, we are very proud to officially welcome the OLG colleagues to our Gateway team."
Gabriel de Alba, Gateway's Executive Chairman, said, "Gateway's growth strategy and focus on a superior customer experience revolves around investing in the company's unique gaming properties and creating a broader attraction across numerous demographics. Our success has resulted in significant job creation across the communities where we operate in Western Canada. We are bringing this same approach to Southwestern Ontario with a planned investment of over $200 Million to revitalize and enhance the gaming and entertainment landscape."
In December 2016, Gateway was selected by OLG as the successful service provider in the Southwest and North Gaming Bundles. The Southwest Gaming Bundle includes a casino in Point Edward and slots in Woodstock (at Woodstock Raceway), London (at the Western Fair District), Clinton (at Clinton Raceway), Dresden (at Dresden Raceway) and Hanover (at Hanover Raceway). The North Gaming Bundle will transition to Gateway in late May 2017 and includes casinos in Thunder Bay and Sault Ste. Marie, slots in Sudbury (at Sudbury Downs) and two planned casino builds in Kenora and North Bay. The Ontario acquisitions are expected to be immediately accretive to Gateway's top-line growth, EBITDA margin and full year earnings.
The expansion into Ontario is the next step in the continued evolution of Gateway. In 2010, The Catalyst Capital Group Inc. ("Catalyst"), Gateway's ownership group, took Gateway and its 9 properties under management to rebuild and restructure the company. A focus on superior customer experience and measured growth has seen Gateway's portfolio expand to 28 properties once the Southwest and North Gaming Bundles are fully transitioned and developed.
Central to Gateway's success has been the development of signature casino and restaurant brands that have dramatically improved the gaming customer experience while generating important new customer segments. With transition complete, Gateway will now focus on plans to invest over $200 Million in Southwestern Ontario communities to introduce the proprietary casino and restaurant signature brands.
A customer celebration will be held on June 22nd, 2017 at all Gateway's Ontario sites in the Southwest and North. The daylong celebration will include new and exciting promotions and prizes, live entertainment, Gateway merchandise giveaways and delicious food and drink specials. To learn more about the celebration on June 22nd please visit www.gatewaycasinos.com.
A commitment to responsible gambling is integral to how Gateway operates. All Gateway properties in British Columbia and Ontario hold RG Check accreditation. Together with OLG and other government partners, Gateway will continue to implement responsible gambling initiatives at all properties across Canada.
(Gateway Casinos & Entertainment Limited)