In “Modernizing Lottery and Gaming in Ontario”, a report delivered to the Minister of Finance, OLG outlined a proposal to modernize gaming in Ontario to modernize the system and create jobs. By modernizing lottery and gaming and including initiatives already underway, in 2017 OLG will contribute an additional $1.3 billion annually to key public priorities; usher in $3 billion in new private sector capital investment in the province; and help create some 2,300 net new jobs across Ontario and an estimated 4,000 service sector jobs in the hospitality, hotel, restaurant, entertainment and retail sectors. The report makes three key recommendations to reform Ontario’s lottery and gaming industry, all of which are subject to government approval: • Become more customer-focused • Expand regulated private sector delivery of lottery and gaming • Renew OLG role in oversight of lottery and gaming Ontarians enjoy gaming. Last year, more than 2.7 million customers visited OLG facilities. Our customers are interested in safe, fun gaming entertainment in convenient locations. OLG focused its early land-based gaming expansion in properties near the U.S. border to attract U.S. customers. Since 2002, visits from the U.S. have declined dramatically from 23 million annually to seven million annually in 2011. At the same time, many U.S. border communities have opened their own gaming facilities. One of the key recommendations of the report targets the improvement of OLG’s land-based gaming business so that it better aligned to customer interests. OLG’s consultations with stakeholders in 2011 revealed that they felt that the future of gaming should be determined by customers and the market. Expansion or closure of sites should be decided based on the level of customer interest. Stakeholders also suggested that OLG take advantage of the expertise of the private sector particularly to reduce the burden of capital investment on the government and the taxpayer. To transform OLG’s business responsibly, OLG should expand the engagement of the private sector in order to modernize the lottery and gaming industry. OLG would allow private sector providers to run the day-to-day operation of sites, while increasing profit to the province, and maintaining responsible gaming standards as well as oversight of the business. OLG facilities in need of capital improvements currently rely on public funds to do so. At the moment, existing OLG infrastructure is in need of $1 billion in capital investment to simply maintain current delivery. Historically, location and size of all facilities has been determined based on priorities that are not always related to customer interest. The report recommends that the private sector expand its role in the efficient, effective delivery of casino, gaming and lottery products while maintaining government control and OLG oversight of the business. This would be accomplished through the establishment of gaming zones. Through a fair and open competitive procurement process, the private sector could bid on the rights to operate in a zone. As OLG moves toward shifting the daily operation of facilities to the private sector, OLG's current direct employees at gaming sites could have the opportunity to work at privately-operated facilities. Once the zones for gaming are established, there will be a determination about what is the best combination of offerings for a region. Any new sites would require appropriate oversight and responsible gambling standards as well as OLG, Minister and municipal approval. The private sector could also purchase assets that are required to operate the business. Any future capital investment would be made by the private sector. This could create the conditions for some $3 billion in private capital investment in communities in Ontario. Copies of the report are available at www.olg.ca For further information: OLG Media Relations, 1.888.946.6716