Great Canadian Gaming Corporation and Brookfield Business Partners L.P. announced yesterday, 8th August, that they are among the operators to sign a long-term takeover agreement with Ontario Lottery and Gaming Corp. (OLG), under which they will operate certain casino facilities in the Greater Toronto Area (GTA).
Yesterday, Great Canadian Gaming and Brookfield Business reported that they are among the winners in the bidding process for the privatization of the gaming sector in the Greater Toronto Area. The bidding was launched by OLG some time ago as part of the company’s strategy to revive the outdated casino industry in the province. In fact, many foreign companies entered the bidding battle, enticed by the great potential of the GTA’s market and the solid financial profit, which they may reap.
OLG is a Canadian corporation, responsible for the gambling industry in Ontario. Thus, it is in charge of the lotteries, slot machines and commercial casinos within the province. As a result of the bidding process, OLG pointed out that Great Canadian Gaming and Brookfield are assigned the control over certain gaming facilities, also referred to as the “GTA Bundle”. The two companies will acquire the assets of the “GTA Bundle” by signing a 22-year-long deal with OLG. The deal between the parties is also known as the “Partnership”. According to the “Partnership”, Great Canadian and Brookfield will hold equal shares of 49% each, and the other 2% are granted for Clairvest Group Inc.
Therefore, OLG signed a Transition and Asset Purchase Agreement with the parties, under which the “Bundle”-awarded companies will take over the operations of OLG Slots at Woodbine Racetrack, OLG Slots at Ajax Downs and Great Blue Heron Casino. It is believed that the partnership will give a strong boost to the casino industry in the area, decrease the unemployment rate and bridge some gaps in the budget. Moreover, the partnership will upgrade and modernize the entire image of the province, as the agreement includes also integrated property expansion. This will attract many foreign visitors and further develop the tourism sector in the area.
In fact, this is not the first time, in which OLG collaborates with Great Canadian Gaming, as in 2015 the two companies signed a privatization deal, under which the great Canadian Gaming purchased casino facilities and slots from OLG. The newcomer seems to be Brookfield Business Partners, which is a company focused on acquiring inexpensive businesses, targeting out-of-favor branches in order to deploy their potential and lead them to success by right managing.
The transition process of the assets and certain liabilities from OLG to the awarded companies is said to be finalized by the beginning of 2018. Yet, there are certain legal requirements, which the parties should meet.
