OLG Mute on new Ontario Casinos Supplier until Final Announcement

Ontario Casinos by OLGThere’s a new operator coming to four Toronto casinos. The Ontario Lottery and Gaming Corp (OLG) has been working on the West GTA Gaming Bundle for some time now, commenting often on progress and promoting the project across local communities. That’s all about to change.

A recent statement from the OLG confirmed that they have no intention of discussing the matter any further – at least not publicly – until a final decision is made. To preserve the integrity of the process, which includes the difficult task of selecting just the right operating partner to manage the area’s gaming businesses, OLG will become mute on any further progress until they are ready to announce their chosen supplier.

The OLG previously described the lengthy procedures in a document explaining it’s ‘modernization procurement process‘, an initiative to grant certain operational rights to private operators that began back in 2010.

“OLG needs to ensure proper due diligence in order to select service providers from among the best and most qualified proponents,” the OLG wrote.

The RFP (Request for Proposal) for a new operator to oversee “day-to-day operations” of four Ontario casinos in West GTA (Greater Toronto Area) was issued in early 2016, just after the OLG completed a similar process for the East Gaming Bundle in January. That process led to Ontario Gaming East LP being named the operational supplier for the province’s OLG Casino Thousand Islands and OLG Slots at Kawartha Downs.

The West GTA Gaming Bundle will see a four Toronto casinos, each in their own designated Gaming Zones, handing over the operational reigns to the new supplier of OLG’s choice. These include OLG Casino Brantford, OLG Slots at Flamboro Downs, OLG Slots at Grand River Raceway, and OLG Slots at Mohawk Racetrack.

That’s a rather long time to cut the tether of communication, as the OLG isn’t expected to make its final decision until the fall of 2017.

Why do Ontario Casinos Need New Operators?

Throughout their existence, the gaming floors of all casinos in Ontario have been managed entirely by the Ontario Lottery and Gaming Corp. Following a 2 year review process by the OLG, the government approved a plan in 2012 to entrust day-to-day operations of Ontario casinos to experienced suppliers.

The OLG will continue to conduct more intricate, behind-the-scenes operations, but the idea was to lighten the load for the regulator as more casinos opened their doors.

As the OLG explained:

Under section 207 (1) (a) of the Criminal Code of Canada, only OLG (as an agent of the Province) is permitted to conduct and manage gaming in Ontario. That is why OLG will continue its conduct and manage role and will remain the operating mind behind the delivery of gaming and lottery in Ontario…”

Since its 1975 inception, OLG has helped bring in $44 billion to support the government and people of Ontario. It is the province’s largest source of non-tax revenue, now generating over $2.2 billion each year. That money is utilized to support local hospitals, amateur sports leagues and charitable organizations, as well as provincially funded problem gambling treatment and prevention programs.

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