TORONTO, ON – Ontario Lottery and Gaming Corporation (OLG) has selected Ontario Gaming GTA LP (OGGLP) as the service provider for the GTA Gaming Bundle, following a competitive procurement process. The Canadian partnership is comprised of Great Canadian Gaming Corporation (“Great Canadian”) and Brookfield Business Partners LP (“Brookfield Business Partners”).
“OLG’s land-based gaming modernization is bringing new employment and investment to communities across Ontario while improving our contribution to the Province,” said Stephen Rigby, President and CEO, OLG. “OGGLP is a partnership that includes global leadership in infrastructure development combined with significant experience in world-class gaming, entertainment and hospitality development in Ontario and across North America.”
“We thank OLG for the award of the GTA Bundle on behalf of the partnership,” stated Rod N. Baker, Great Canadian’s President and CEO. “Great Canadian has a long gaming history in Canada and Ontario and in collaboration with OLG and our partners to deliver gambling responsibly. We look forward to this historic opportunity to service Canada’s largest metropolitan region.”
"We are excited to have been selected by OLG to operate the GTA Bundle,” said Cyrus Madon, CEO, Brookfield Business Partners. “We look forward to working closely with Great Canadian. We will bring our capabilities in operations, development and retail to the Partnership to deliver expanded gaming options and premier entertainment that will enhance the experience of patrons and contribute to the surrounding communities.”
Great Canadian and Brookfield Business Partners will each hold a 49 per cent interest in OGGLP. Clairvest Group Inc. will hold a two per cent interest. Great Canadian will operate the gaming facilities within the GTA Bundle on behalf of the Partnership.
OLG has entered into a Transition and Asset Purchase Agreement with OGGLP for the GTA Gaming Bundle, which sets out the customary closing conditions to be satisfied for OLG and OGGLP to enter into a 22-year Casino Operating and Services Agreement (COSA). Under the COSA, OGGLP will take over day-to-day operations of OLG Slots at Woodbine Racetrack, OLG Slots at Ajax Downs and Great Blue Heron Casino.
OLG expects that the service provider will assume operations in early 2018. OGGLP is required to follow all applicable laws including AGCO’s standards that require, among other things, rigorous Responsible Gambling (RG) policies and programs. OLG has an internationally recognized RG program and embeds its high standards for RG into the contracts it has with service providers.
Unionized employees will transfer to the service provider under the terms and conditions of their current collective agreement, per the Ontario Labour Relations Act. OGGLP will retain non-unionized employees for a period of no less than 12 months and will provide all eligible employees with benefits and a registered pension plan.
While OGGLP will be responsible for the day-to-day gaming operations in the bundle, OLG will:
To OLG, the integrity of its procurement process is of the utmost importance.
Throughout the procurement process, OLG has engaged the services of a Fairness Monitor to provide oversight and advice.
At more than $2.3 billion annually, OLG provides the provincial government with its largest source of non-tax revenue. Modernization helps OLG provide more money to Ontario for key government services.
Great Canadian Gaming Corporation is a Canadian based company that operates gaming, entertainment and hospitality facilities in British Columbia, Ontario, New Brunswick, Nova Scotia, and Washington State. The Company has 22 gaming properties, which consists of fourteen casinos, four horse racetrack casinos, three community gaming centres, one commercial bingo hall and four Diamond resort hotels in Richmond, British Columbia and in Moncton, New Brunswick. A key element of Great Canadian’s business model is its commitment to social responsibility. “PROUD of our people, our business, our community” is Great Canadian’s brand that unifies the company’s community, volunteering and social responsibility efforts. Under the PROUD program, Great Canadian annually invests over $2.5 million in our communities, and in 2016, over 1,500 charitable organizations were supported by Great Canadian. In each Canadian gaming jurisdiction, a significant portion of gross gaming revenue from gaming facilities is retained by our crown partners on behalf of their provincial government for the purpose of supporting programs like healthcare, education and social services.
Brookfield Business Partners is a business services and industrial company focused on owning and operating high-quality businesses within Brookfield’s private equity group that benefit from barriers to entry and/or low production costs. Brookfield Business Partners is listed on the New York and Toronto stock exchanges. Further information is available at http://bbu.brookfield.com. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Brookfield Business Partners is the flagship listed business services and industrials company of Brookfield Asset Management, a leading global alternative asset manager with approximately $250 billion of assets under management. For more information, go to www.brookfield.com.
OLG is the Ontario government agency that delivers gaming entertainment in a socially responsible manner. OLG conducts and manages gaming facilities, the sale of province-wide lottery games, PlayOLG Internet gaming, the delivery of bingo and other electronic gaming products at Charitable Gaming Centres and is helping to build a more sustainable horse racing industry in Ontario. Since 1975, OLG has provided nearly $44 billion to the Province and the people of Ontario. These payments to the province support the operation of hospitals, amateur sport through the Quest for Gold program, local and provincial charities and problem gambling prevention, treatment and research.
All for Here – 100 per cent of OLG’s proceeds are invested in Ontario
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