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March 12, 2012

BACKGROUNDER – MUNICIPAL STAKEHOLDERS

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 private sector capital investment in the province; and help create approximately 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 even more customer-focused • Expand regulated private sector delivery of lottery and gaming • Renew OLG role in oversight of lottery and gaming Within the three recommendations of the report, there is a suggested municipal engagement change which states: …Municipalities should continue to receive financial support from the gaming operations in their communities through a portion of gaming revenue for the benefit of the community. However, OLG should introduce a consistent fee model for host municipalities. This would facilitate the introduction, of a mix of games at sites. Funding levels should continue to be determined by customer volume. Ontario’s existing 23 host gaming communities have enjoyed a favourable and financially fruitful relationship with OLG having accumulated approximately $815 million since 1998, including approximately $92 million over the last year from a payment from a percentage of slot revenues. The revenues which municipalities have received from OLG have been utilized at their discretion and have funded a variety of worthwhile community projects that have in turn, created many secondary economic benefits for the taxpayers of Ontario. The report recommends that, as is the current practice, municipalities should continue to receive financial support from the gaming operations in their communities through a portion of gaming revenue for the benefit of the community. However, OLG should introduce a consistent fee model for host municipalities. This would facilitate the introduction of a mix of games at sites. Funding levels should continue to be determined by customer volume and will likely reflect some components of the current arrangements with the levels of funding remaining relatively the same. Copies of the report are available at www.olg.ca For further information: OLG Media Relations, 1.888.946.6716
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OLG is where gaming entertainment drives benefit beyond the game. As an Ontario Crown Agency, OLG offers casino, lottery, digital and charitable gaming to millions of players – with a commitment to safe and responsible play at the heart of everything it does. Since 1975, its operations have generated approximately $64 billion to fund key provincial priorities, while creating significant economic benefits for casino host communities, Ontario First Nations, lottery retailers, local charities and the horse racing sector.

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