The Ontario Lottery and Gaming Corporation (OLG) plans to engage regulated private-sector providers to expand and possibly operate lottery in Ontario. The process will begin with a multi-stage, competitive and transparent procurement process that includes a Request for Information (RFI) followed by a Request for Pre-Qualification (RFPQ) and a Request for Proposal (RFP).
OLG is interested in exploring opportunities to assign functions to regulated private-sector service providers for the lotteries in Ontario, specifically:
The RFI is non-binding and the answers provided by respondents have no influence in the evaluation of any potential future formal competitive process. At OLG’s sole discretion, respondents may be invited to participate in further presentation sessions.
It is anticipated that the procurement process will be made up of various stages that may include the following:
As part of the Ontario government’s new direction to the OLG in July of 2010, OLG conducted a comprehensive strategic review of lottery and gaming operations. The result of the review was three key recommendations:
These three recommendations have implications specific to the lottery business, where OLG is looking to accomplish several goals:
This initiative does not contemplate the introduction of VLTs, nor does it include the expansion of lottery into the hospitality sector.
OLG will continue to be the agency responsible for conducting and managing lottery in Ontario, but will no longer be directly developing all games or deploying terminals. Rather, OLG’s role will focus on conducting and managing lottery in Ontario through a number of functions essential to serving as the Operating Mind of the business:
At the completion of the modernization exercise in 2017-18, OLG will be a modern, sustainable organization, which will increase Net Profit to Ontario by an additional $1.3 billion a year — all while upholding responsible gaming standards.
This proposed reform could see key public priorities like healthcare and education benefit from the additional annual Net Profit to Ontario of $1.3 billion by 2017. Over the six-year transformation period, OLG will provide an additional $4.6 billion to the Ontario government. Employment will grow by over 2,300 net new jobs in the industry (in new gaming facilities and related amenities, as well as in digital gaming design and management). An estimated 4,000 service sector jobs will also be created in the hospitality, hotel, restaurant, entertainment and retail industries.
OLG is committed to ensuring that its modernization is the result of a process that is, and is seen to be, fair and transparent to all relevant stakeholders. Accordingly, OLG intends to structure the modernization process so that it includes various procedural safeguards such as the use of independent, third party fairness and integrity monitors.
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