OLG MODERNIZING ONTARIO’S LOTTERIES

TORONTO – The Ontario Lottery and Gaming Corporation (OLG) is today taking another important step forward in modernizing the province’s lottery and gaming industry by issuing the Request for Information (RFI) for the regulated private-sector participation in Ontario’s lotteries.

The OLG is seeking input from potential providers as part of its strategic plan to modernize lottery products and distribution within Ontario.

“By shifting the day-to-day operation of Ontario’s lottery system to a regulated private service provider, Ontario lottery players will experience more innovative and entertaining games,” said Rod Phillips, OLG President and Chief Executive Officer. “For the eight million Ontarians who play lottery games responsibly every year, a modernized system will also be more convenient as we look to expand sales options at grocery and retail checkout lanes.”

The RFI process will:

  • Help determine the range of options available in the market and assess potential vendor interest.
  • Provide OLG with valuable information to assess and determine how to best engage regulated private-sector providers to assume responsibility for upgrading and daily operation of OLG’s network of existing lottery terminals.
  • Examine ways to introduce new sales channels for lottery products by expanding options for sales to include multi-lane checkouts in grocery and big box stores.
  • Enable further innovation in lotteries by allowing more rapid development and deployment of new lottery games and increasing responsiveness to customers.
  • Once the requirements are determined, OLG will issue a Request for Pre-Qualifications (RFPQ), which would ask vendors interested in the Request for Proposals (RFP) to submit evidence they are qualified and are compliant with OLG and Alcohol and Gaming Commission of Ontario requirements.
  • Following the RFPQ process, OLG will begin the RFP process as early as fall 2012.

OLG is engaging an independent fairness monitor to ensure the overall procurement process is carried out fairly and transparently.

“In the future, OLG will continue to retain complete oversight and responsibility for Ontario lottery,” said Mr. Phillips. “Critical components of the business will remain with OLG, including the draws operations, draws audits, prize redemption, responsible playing, approval of game rules and marketing plans.”

OLG will only engage with service providers for lottery services who comply with OLG’s Responsible Gaming program.

By modernizing lottery, as well as gaming, OLG will in five years contribute an additional $1.3 billion a year to key public priorities and usher in $3 billion in private-sector capital investment in Ontario. In addition to 2,300 net new jobs in the lottery and gaming industry, the initiative would help create an estimated 4,000 jobs in the hospitality, hotel, restaurant, entertainment and retail industries.

This is the second RFI OLG has recently issued to modernize the province’s lottery and gaming sector. The first RFI, issued on May 17, is seeking private-sector input for modernizing Ontario’s gaming sector. Both RFIs are available on MERX (www.merx.com/olg).

OLG Background documents on OLG’s Modernization Procurement Process and a summary of the Lottery RFI are also posted on www.OLG.ca.

OLG is a provincial agency responsible for province-wide lottery games and gaming facilities. Since 1975, OLG lotteries, Casinos, Slots, and Resort Casinos have generated more than $34 billion for the benefit of the Province of Ontario. Gaming proceeds support Ontario's hospitals, amateur sport, recreational and cultural activities, communities, provincial priority programs such as health care and education, and local and provincial charities and non-profit organizations through the Ontario Trillium Foundation.

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November 30, 2012

SUMMARY OF GAMING REQUESTS FOR PRE-QUALIFICATION (RFPQ)

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June 7, 2012

BACKGROUNDER – MODERNIZING LOTTERIES IN ONTARIO