BACKGROUNDER – LOTTERY BUSINESS IMPROVEMENT

In “Modernizing Lottery and Gaming in Ontario”, a report delivered to the Minister of Finance, OLG outlined a proposal to transform lottery and gaming in Ontario to modernize the system and create jobs. By modernizing lottery and gaming, 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 eight million Ontarians played the lottery. Within the three recommendations of the report, there are several suggested lottery changes including: • Lottery network operation: some of the day-to-day operation of the network to be provided by regulated private sector through a competitive procurement process • Multi-lane sales in large retail stores: to be an option for retailers The report recommends the improvement of OLG’s lottery business so that it better corresponds to customer interests. Currently, OLG is responsible for provincial lotteries (PICK 3, PRO LINE and participates in national lotteries (eg. LOTTO MAX, LOTTO 6/49). Ontarians purchase lottery products at over 10,000 retailers through a paper-based lottery ticket system. With private sector investment, the terminals could be used to sell additional products and services, while maintaining the integrity of the game. Lottery terminals have the potential to provide many more services such as the ability to sell phone cards, gift cards and iTunes® products. Other jurisdictions have expanded lottery ticket sales by allowing for sales on the internet and across all lanes in grocery stores. The report recommends the expansion of lottery terminal locations to multi-lanes in major retail outlets such as supermarkets and big box stores. Convenience stores will continue to play an important role in the distribution of lottery in the province. OLG is committed to working with current lottery tickets sellers to assess opportunities and ensure continued strong performance. The report recommends that the private sector be engaged in the creation of lottery solutions while meeting responsible gambling standards and maintaining the integrity of the game. OLG has approval to launch lottery tickets (as is the case in B.C., Quebec and Atlantic Canada) through internet gaming in 2012-13. Copies of the report are available at www.olg.ca For further information: OLG Media Relations, 1.888.946.6716

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BACKGROUNDER – MUNICIPAL STAKEHOLDERS

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BACKGROUNDER – LAND-BASED GAMING IMPROVEMENT