Month: November 2012

Bundling Gaming Zones Will Lead To Greater Efficiencies In Ontario’s Gaming System

Posted on by mbugeja

In May of this year, OLG initiated a Request for Information (RFI) process for its land-based gaming operations. The purpose of the RFI was to gather input from potential qualified service providers for the day-to-day operation of gaming in Ontario.

“We received more than 100 responses from a wide range of proponents,” said Rod Phillips, President and CEO, OLG. “The RFI process has provided us with a better understanding of the complexity of the change we are making as an organization.”

During the RFI process, a number of respondents told OLG that grouping some of the 29 identified Gaming Zones into Gaming Bundles would help OLG to more effectively manage the gaming market in Ontario. They also said it would create opportunities for service providers to realize revenue and cost synergies by operating multiple facilities in a given region.

As a result, OLG today announced it has grouped eight previously announced Gaming Zones into two Gaming Bundles and is asking interested service providers to demonstrate their ability to operate multiple facilities in Eastern and Northern Ontario.

It’s important to note that the bundling of Gaming Zones does not mean that current or proposed facilities, or proposed Gaming Zones, would be merged. But rather that one service provider could operate facilities in more than one Gaming Zone.

The announcement of the new Gaming Bundles was included in the launch of three separate Requests for Pre-Qualification (RFPQ), one for the Gaming Zone in the Ottawa area, and one for each of the two bundled areas mentioned above.

Qualified service providers interested in bidding on one of the two new Gaming Bundles are required to submit proposals on the entire bundle, not on individual Gaming Zones or Gaming Sites contained within a Gaming Bundle.

OLG intends to issue separate RFPQs for the remaining Gaming Zones, some in Gaming Bundles, over the next several months.

For more information on today’s RFPQ launch, read the backgrounder.

For more information on the location of OLG’s proposed Gaming Zones, view the map of Gaming Zones.

For more information on Gaming Zones, read ‘the science behind OLG’s gaming zones’.

 

Posted in OLG's Modernization, Update

Cards laid out for casino bidders

Posted on by mbugeja

A company will rake in $30 million annually — at the bare minimum — to run a new Ottawa-area casino that could have up to 600 seats at table games and 2,000 slots.

A call Friday by the Ontario Lottery and Gaming Corp. to pre-qualify potential bidders for the request for proposals means it’s officially game on for the lucrative contract.

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Casinos will be ‘bundled’

Posted on by mbugeja

Any gaming company looking to set up a casino in Kingston or surrounding area will also have to set up two others in the eastern Ontario region.

The Ontario Lottery and Gaming Corporation announced in a release Friday that it was moving to the Request for Pre-Qualification stage as it continues its casino modernization process.

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OLG bundles North

Posted on by mbugeja

Ontario Lottery and Gaming is seeking a single operator for casinos sites across the North.

Northern Ontario’s five gaming zones — North Bay, Sudbury, Sault Ste. Marie, Thunder Bay and Kenora — have been bundled together as one bidding opportunity under OLG’s request for pre-qualifications which was issued Friday.

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OLG BEGINS PROCESS TO PREQUALIFY POTENTIAL VENDORS FOR MODERNIZATION OF GAMING IN ONTARIO

Posted on by jdion

TORONTO – The Ontario Lottery and Gaming Corporation (OLG) is taking another important step forward in modernizing the province’s lottery and gaming industry by starting the Request for Pre-Qualification (RFPQ) process. This process is intended to pre-qualify service providers for specific day-to-day operation of gaming in Ontario.

The gaming Request for Information (RFI) that OLG released on May 17, 2012, identified 29 proposed Gaming Zones — or geographic areas — where qualified service providers would be permitted to operate a single gaming facility.

“We received more than 100 responses to our gaming RFI from a wide range of proponents, and we now have a better understanding of the change we are making as an organization,” said Rod Phillips, OLG President and CEO.

As a result of feedback from the RFI, and to enable OLG to more effectively manage the gaming market in Ontario, OLG is grouping many of the 29 Gaming Zones into Gaming Bundles — each bundle representing a separate bidding opportunity.

OLG is releasing its RFPQs in stages. The first wave includes three separate RFPQs, one for each of the following:

  • Ottawa Area (Zone E4)
  • East Gaming Bundle (Zones E1, E2, E3)
  • North Gaming Bundle (Zones N1, N2, N3, N4, N5)

Where the RFPQ is based on a Gaming Bundle, interested service providers are required to submit proposals for the entire Gaming Bundle as set out in the RFPQ, not for individual Gaming Zones or Gaming Sites contained within a Gaming Bundle. This means that for some RFPQs, including two of the three being issued today (East and North), service providers must demonstrate their ability to operate multiple facilities in a given region or geographic area of Ontario.

Service providers must also provide information on their financial and technical attributes and capabilities, including proof of successful experience with similar projects.

In addition, service providers are asked to provide information on any experience and working relationship with First Nations or First Nations communities.

“This is the next step in our Modernization plan. We plan to have no more than one gaming site in each of the 29 Gaming Zones,” said Phillips. “Gaming Bundles will not result in the merging of current or proposed gaming sites, or of proposed Gaming Zones.”

OLG intends to issue separate RFPQs for the remaining Gaming Zones, many in Gaming Bundles, over the next several months. Details pertaining to upcoming RFPQs, including the composition of additional Gaming Bundles are still being finalized based on feedback OLG received from the RFI process.

The RFPQ process for gaming is the next step in OLG’s Modernization plan. This step will enable OLG to prequalify applicants who would then be eligible to participate in the Request for Proposal (RFP) process.

OLG has two impartial advisors providing oversight on the integrity and fairness of the procurement process.

By modernizing lottery and gaming, OLG will in five years contribute an additional $1.3 billion per year to key public priorities and usher in more than $3 billion dollars in new capital investment in Ontario. In addition, thousands of jobs will be created across the province.

While the new lottery and gaming model will include securing qualified service providers for the day-to-day operation of gaming, OLG will continue its role in conduct, management and oversight of lottery and gaming. OLG will also continue to prevent and mitigate the effects of problem gambling through its Responsible Gambling program, which is recognized internationally by the World Lottery Association’s certification program, and at four gaming sites, by the Responsible Gambling Council of Canada’s RG Check program.

Interested service providers must respond to the first three RFPQs by March 7, 2013.

OLG will issue the RFPQ for the modernization of lottery shortly. All RFPQs will be available on MERX (www.merx.com/olg). MERX charges a fee to download this type of material.

The following are also available in the media section at www.OLG.ca:

OLG is a provincial agency responsible for province-wide lottery games and gaming facilities. Since 1975, OLG lotteries, Casinos, Slots, and Resort Casinos have generated more than $36 billion for the benefit of the Province of Ontario. Gaming proceeds support Ontario’s hospitals, amateur sport, recreational and cultural activities, communities, provincial priority programs such as health care and education, and local and provincial charities and non-profit organizations through the Ontario Trillium Foundation.

“Know Your Limit. Play Within it”

THE ONTARIO PROBLEM GAMBLING HELPLINE 1-888-230-3505

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BACKGROUNDER – GAMING REQUEST FOR PRE-QUALIFICATION

Posted on by jdion

OLG initiated the next phase of the procurement process to modernize gaming in Ontario by issuing Requests for Pre-Qualification (RFPQ) for Gaming Zones, some of which have been grouped into Gaming Bundles, in three geographic regions of Ontario. Specifically, three RFPQs were issued — one for the Ottawa Area and one each for Gaming Bundles in Eastern Ontario and Northern Ontario:

  • Ottawa Area:Zone E4, which includes the Rideau Carleton Raceway site
  • East Gaming Bundle: Zone E1, which includes the Kawartha Downs site Zone E2, which is the area around the City of Belleville Zone E3, which includes the OLG Casino Thousand Islands
  • North Gaming Bundle: Zone N1, which includes the Sudbury Downs site Zone N2, which includes the OLG Casino Sault Ste. Marie Zone N3, which includes the OLG Casino Thunder Bay Zone N4, which is the area around the City of Kenora Zone N5, which is the area around the City of North Bay

Gaming Bundle maps are available in the media section of www.OLG.ca.

Interested service providers are required to submit proposals on entire Gaming Bundles, not on individual Gaming Zones or Gaming Sites contained within a Gaming Bundle.

Interested service providers must respond to these RFPQs by March 7, 2013. The RFPQs are available on MERX (http://www.merx.com/olg).

 

Background

In March 2012, OLG delivered a report to the Minister of Finance, outlining a proposal to modernize lottery and gaming in Ontario. The report contained three key recommendations:

  • Become more customer-focused
  • Select qualified service providers for specific day-to-day operations of Lottery and Gaming; and
  • Renew OLG’s role in the conduct, management and oversight of Lottery and Gaming.

In the spring, OLG initiated a fair and transparent procurement process by releasing two Requests for Information (RFIs) — one for gaming and one for lottery — to solicit feedback from potential service providers.

 

What is a Request for Pre-Qualification (RFPQ)?

A Request for Pre-Qualification (RFPQ) will help OLG determine the skills and abilities of potential service providers.

Interested service providers will be asked to submit information on their financial and technical attributes and capabilities, including proof of successful experience with similar projects. In addition, service providers are asked to provide information on any experience and working relationships with First Nations or First Nations communities.

Interested service providers must also have submitted an application for registration with the Alcohol and Gaming Commission of Ontario (AGCO).

The RFPQ process will result in OLG’s procurement department having the ability to identify qualified service providers eligible to receive the RFP documents — the next step in OLG’s procurement process.

 

What are Gaming Zones?

In order to effectively manage the gaming market in Ontario, and as part of the Gaming RFI released in May 2012, OLG identified 29 Gaming Zones where existing or new gaming facilities would be permitted, with municipal and other approvals.

Gaming Zones are geographic areas where qualified service providers will be permitted to operate a single gaming facility. The design of these Gaming Zones is intended to manage competition between facilities and ensure a sustainable and efficient gaming market in Ontario. The makeup of each proposed Gaming Zone is subject to change.

Within each Gaming Zone, service providers will be permitted to operate the existing facility, establish a new facility if one does not currently exist, or relocate the existing facility within the boundaries of the Gaming Zone, all subject to approvals.

 

What are Gaming Bundles?

Based on responses to the Gaming RFI and to enable OLG to more effectively manage the gaming market in Ontario, OLG is grouping some of the 29 Gaming Zones identified in the RFI together into Gaming Bundles — each representing a separate bidding opportunity.

As a result, for some RFPQs, including two of the three released today (Ontario East and North), service providers are being asked to demonstrate their ability to operate multiple facilities in a given region or geographic area of the province.

Gaming Bundles are intended to create opportunities for qualified service providers to be more efficient by operating multiple facilities in a given region. Gaming Bundles will not result in the merging of current or proposed facilities, or of proposed Gaming Zones.

The number and makeup of proposed Gaming Bundles are subject to change. OLG may also, from time to time, modify Gaming Zones that are included in a single Gaming Bundle operated by a single service provider.

 

Gaming Bundles – Impact on Municipalities

Nothing has changed for municipalities included in the Gaming Bundles issued in the first wave of RFPQs. The rules around existing and new sites, as well as the potential for service providers to move existing sites has not changed.

Any proposed new site, or the movement of an existing site, within a municipality would require municipal approval, as well as approval from OLG and the Ontario government.

Gaming Bundles will not affect the hosting fee agreements OLG has negotiated with host municipalities.

 

OLG’s Conduct and Manage Role

OLG will continue its role in conduct, management and oversight, and remain the “operating mind” behind the delivery of gaming in Ontario.

To fulfill this role, OLG will retain control over lottery and gaming, but will expect the service provider to recommend approaches to the operation of the gaming site that could improve customer service, increase gaming revenue, and/or increase net profit to the Province.

OLG will also continue to prevent and mitigate the effects of problem gambling through its Responsible Gambling program, which is recognized internationally by the World Lottery Association’s certification program, and at four gaming sites, by the Responsible Gambling Council of Canada’s RG Check program.

 

What are the next steps?

OLG will issue RFPQs for the remainder of the Gaming Zones, some in Gaming Bundles, in the coming months. Details pertaining to upcoming RFPQs, including the composition and number of additional Gaming Bundles is still being worked out based on feedback OLG received from the RFI process.

Interested service providers who are prequalified through this process will be invited to participate in the Request for Proposal (RFP) stage of the procurement process. The successful service providers for gaming facilities in the areas defined in the Ontario East and North Gaming Bundles will be selected from this group.

OLG will issue the RFPQ for the modernization of lottery shortly.

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Council approves new revenue agreement with OLG

Posted on by mbugeja

The Ontario Lottery and Gaming Corporation (OLG) has made Chatham-Kent an offer we can’t refuse.

Chatham-Kent council has signed a new agreement with the corporation that runs the slots at the Dresden Raceway. Under the agreement, the municipality will receive 5.25% of the net slot revenue – up from about 5%.

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City holds weak hand in talks with OLG

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Ottawa’s city council is finally being forced to face up to reality: the Ontario Lottery and Gaming Corp. has little intention of entering into new negotiations over how the province would share its take from any future casino with the city.

Nor does the OLG plan on splitting any of the booty that comes from gaming tables.

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New agreement a huge boon to Ajacians

Posted on by mbugeja

Revenue-sharing deal between Town, OLG

As long there are slot machines in Ajax, the cash will continue to flow to the Town in a new revenue-sharing deal with the Ontario Lottery and Gaming Corporation. It’s a big relief to Ajacians worried about the certainty of the money, an estimated $7 million in the first year of the agreement.

In fact, the Town now has a guarantee that revenue from the facility will not go down.

Ajax council on Nov. 12 approved the contract with OLG, which takes effect April 1, 2013.

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Wasaga debates slots facility site

Posted on by mbugeja

WASAGA BEACH – Council has determined four sites they will recommend to host a gaming facility.

During Tuesday’s Committee of the Whole meeting, councillors ranked potential sites for the Ontario Lottery and Gaming Corporation’s proposed 300-slot machine facility for Zone C7.

The Planning Department staff reviewed eight potential sites and two more parties came forward expressing interest in hosting the gaming facility, resulting in the list of 10 locations council reviewed.

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Village Formalizes OLG Deal

Posted on by mbugeja

Point Edward has entered into a formal revenue sharing agreement with the Ontario Lottery and Gaming Corporation.  The village will continue to receive 5.25 per cent of quarterly slots revenue.  Village CAO Jim Burns says the formal, written document expands upon a previous “handshake” agreement with the OLG.

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Council split on preferred casino location

Posted on by mbugeja

WASAGA BEACH – Council is split on whether or not a casino should be located in the east or west.

When asked to rank their preferred locations, if a casino is to be built in Wasaga Beach, three council members gave priority to properties on River Road West and three gave priority to properties located on Highway 26.

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A casino for Toronto a good gamble?

Posted on by mbugeja

Over the next weeks and months citizens of Toronto will decide on whether or not the city accepts a new casino within its boundaries.

As president of Carpenters Local 27, an organization that has been active for 130 years in Toronto, I believe it’s both relevant and proper that we contribute our voice and experience to this debate.

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OLG Mulls Idea of Casino Outside Toronto

Posted on by mbugeja

While all the proposals for a new Toronto casino thus far have seen the resort located in the core of the city, the Chief Executive of the Ontario Lottery and Gaming Rod Phillips has now said that the OLG “is not wedded to Toronto”.

According Phillips, the OLG is also open to the idea of locating the planned casino outside the city, and said that there could even be advantages to constructing the casino at any of the areas in the running, namely Vaughan, Mississauga or Markham.

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OLG changes its tune on city casino

Posted on by mbugeja

After nine months of intensely wooing Toronto, the Ontario Lottery and Gaming Corp. says it’s “not wedded” to the city as a casino host and might pull more revenue out of another GTA location.

In what seemed to be a warning to Torontonians to get behind the casino push or miss a huge economic opportunity, OLG chief executive Rod Phillips made the argument Tuesday to a packed business luncheon.

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Wasaga to Ask for Casino

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Wasaga Beach councillors think the town should welcome a 300 slot gaming facility.

At Tuesday’s Committee of the Whole meeting — members of council voted 6 to 1 to let the OLG know they want the town to be a host site for a casino in the area.

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Public Consultations on Casinos Coming Soon

Posted on by mbugeja

After a day-long debate Monday, the executive committee has given the green light to public consultations on the prospect of opening a casino in Toronto. Those consultations will begin soon: a report on the results is due back at City Hall by February or March.

Unfortunately, however, Torontonians won’t get to find out exactly how much the city stands to make from a casino before they’re asked to give their opinions on whether we should allow one.

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Casino would bring cash to Toronto, but how much?

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The City of Toronto will consult with residents about the potential development of a casino, though it is not yet clear precisely how much revenue could be generated for the city if the concept were to move forward.

The executive committee agreed Monday night to arrange for public consultations to be held in the months ahead.

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Ontario Police Chiefs say no link between gaming facilities and increases in crime

Posted on by mbugeja

According to new video testimonials from a number of OntarioPolice Chiefs, there has been no evidence that a casino’s presence increases crime over the two decades that casino gaming has been available in Ontario.

“We have an excellent relationship with the OLG Slots at Dresden Raceway,” said Dennis Poole, Chief of Police for the Municipality of Chatham-Kent. “Certainly from a policing perspective it has not been an issue and the municipality has benefited from the slots being in Dresden. We average about 20 calls per year to that facility, but that is no more than the average mall or average large department store in our community.”

The video clips include a statement by Brantford Police Chief, Jeff Kellner. Prior to the opening of OLG Casino Brantford in 1999, Kellner recalls concerns were common that a gaming facility would increase the local crime rate, but notes that those concerns never materialized.

“We were concerned as a police service,” said Kellner. “But the overall impact, as it relates to crime, has been very insignificant in our community.”

This has also been the experience of the Ontario Provincial Police (OPP), who provide policing services inside many gaming facilities across the province.

“We have not seen an increase in crime,” said OPP Chief Superintendent, Fred Burtucca. “In fact, the facilities are very well run. We have a very close relationship with the security and surveillance people located at the site and we’re able to respond immediately to any situation that happens.”

 

Posted in OLG's Modernization, Update
Posted on by mbugeja

Torontonians will have their say on a casino, but they won’t know exactly how much money is in it for the city when they do.

Mayor Rob Ford’s executive committee gave the green light Monday to formal consultations on whether to embrace a new gambling palace – before the province and the city reach a crucial revenue-sharing agreement.

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Council gambling on gaming choices

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Barrie residents could be flush with choices to comment on a downtown casino.

City staff have provided councillors with a memo detailing how citizens can use Barrie’s website, mail and e-mail, as well as attend a special meeting to voice their opinions on a gambling site as part of a hotel/convention/conference centre in the core.

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