TORONTO, ON - Following a competitive procurement process, Ontario Lottery and Gaming Corporation (OLG) has selected Gateway Casinos & Entertainment Limited (Gateway) as the service provider for the North and Southwest Gaming Bundles.

“Today’s announcement of a service provider for the North and Southwest Gaming Bundles is a significant step forward in OLG’s modernization," said Stephen Rigby, OLG’s President and CEO. "The investments Gateway will make in the bundles will help ensure the best possible gaming experience for customers while OLG continues to deliver on its commitment to the people and Province of Ontario."

“We are very excited and pleased to partner with OLG in the modernization of Ontario’s gaming industry,” said Tony Santo, Gateway’s Chief Executive Officer. “In northern and southwestern Ontario, Gateway will work with host communities to bring our unique brands and experiences to customers. On behalf of the 4,000 Gateway employees, we look forward to welcoming OLG colleagues to our team.”

“In 2017, Gateway will celebrate 25 years in the business of gaming and entertainment,” said Gabriel de Alba, Gateway’s Executive Chairman. “Expanding into Ontario is truly an exciting and significant way to mark this important milestone in our company’s history.”

OLG has entered into a Transition and Asset Purchase Agreement with Gateway for each of the North and Southwest Gaming Bundles, which set out the customary closing conditions to be satisfied for OLG and Gateway to enter into a 20-year Casino Operating and Services Agreement (COSA) for each of the bundles. Under the COSAs, Gateway will take over day-to-day operations of:

Southwest

• 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

North

• OLG Casino Thunder Bay
• OLG Casino Sault Ste. Marie
• OLG Slots at Sudbury Downs

OLG expects that the service provider will take over day-to-day operations in spring 2017.

In addition, as the service provider for the North Gaming Bundle, Gateway will have the opportunity to build two new gaming and entertainment facilities, one in the N4 Gaming Zone (Kenora area) and one in the N5 Gaming Zone (North Bay). The proposed new facilities will be subject to required approvals, including the provincial government.

OLG employees will transfer to the new service provider and OLG will work with Gateway to ensure they have as smooth and seamless a transition as possible. This includes a requirement for the service provider to retain 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.

While Gateway will be responsible for the day-to-day gaming operations in the bundles, OLG will continue to:

• Conduct and manage gaming in the bundles
• Require compliance with applicable regulations set out by the Alcohol and Gaming Commission of Ontario (AGCO)
• Be the owner of key player information
• Uphold the standards of its Responsible Gambling program through the service provider, including the self-exclusion program
• Distribute Contribution Agreement payments to host communities

Gateway is required to follow all applicable laws and regulations, as well as AGCO standards and rigorous Responsible Gambling standards.

To OLG, the integrity of its procurement process is of the utmost importance. Throughout the procurement process, OLG has engaged the services of a Fairness Monitor to provide oversight and advice.

Gateway Casinos & Entertainment Limited (Gateway) is one of the largest and most diversified gaming companies in Canada. Operating in Western Canada, Gateway has over 4,000 employees and operates 18 gaming properties with 222 tables and over 6,700 slot machines. With business partners, Gateway operates 43 restaurants and 1,000 hotel rooms. Gateway is undertaking an exciting redevelopment strategy to dramatically improve the customer experience and attract new gaming customers. This includes the development of proprietary food and beverage offerings like Match Eatery & Public House and Atlas Steak + Fish. In 2017, Gateway will celebrate 25 years in the business of gaming and entertainment in Canada. Further information is available at www.gatewaycasinos.com.

OLG is the Ontario government agency that delivers gaming entertainment in a socially responsible manner. OLG conducts and manages gaming facilities, the sale of province-wide lottery games, PlayOLG Internet gaming, the delivery of bingo and other electronic gaming products at Charitable Gaming Centres and is leading the integration of horse racing into the provincial gaming strategy. Since 1975, OLG has provided nearly $44 billion to the Province and the people of Ontario. These payments to the province support the operation of hospitals, amateur sport through the Quest for Gold program, local and provincial charities and problem gambling prevention, treatment and research.

All for Here – 100 per cent of OLG’s proceeds are invested in Ontario
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