In a press release posted yesterday, Ontario Lottery Gaming Corp. (the Crown corporation responsible for the management of commercial gambling in Ontario) officially announced that Great Canadian Gaming Corp. and its partner, Clairvest Group Inc. are the selected companies to take over the day-to-day operation of four gambling facilities in the West Greater Toronto Area (better known as the “West GTA Bundle”). Once the deal is closed, the two companies will have the right to jointly operate a casino and three slot venues for 20 years.
Gambling operator Great Canadian, together with its partner Clairvest Group Inc., have been chosen to run four gambling facilities west of Toronto. The two companies are to ink a 20-year Casino Operating and Services Agreement (COSA) with OLG. The “West GTA Bundle” includes OLG Casino Brantford, OLG Slots at Mohawk Racetrack, OLG Slots at Flamboro Downs and OLG Slots at Grand River Raceway.
Great Canadian Gaming Corporation is Canadaās leading gambling operator. As it can be recalled, in August this year, OLG selected Great Canadian and Brookfield Business Partners to farm out the operations of the gambling facilities, included in the GTA Gaming Bundle (OLG Slots at Woodbine Racetrack, OLG Slots at Ajax Downs and Great Blue Heron Casino). The two parties entered into a Transition and Asset Purchase Agreement, discussing the terms and conditions of the deal. The deal is expected to be closed at the beginning of the next year.
OLG Sticks to Its Modernization Plan Amid Money Laundering Concerns
The privatization of gambling venues operated by OLG integrates into the gaming modernization strategy, which the corporation has introduced in March 2012. Back then, OLG outlined that the modernization plan aims at securing qualified service providers to take over the gambling facilities, reviving the provinceās gambling industry and changing OLGās role in the management of the gambling facilities. The corporation projected an additional C$1.3 billion in gambling revenue and hundreds of new jobs.
Earlier this month, Casino Reports produced an article regarding OLGās determination to select a service provider to take over the “West GTA Bundle”. Only a week ago, Ontarioās Finance Minister Charles Sousa asserted that Great Canadian leads the bidding war for the “West GTA Bundle”. The official made an official statement in an attempt to pour cold water on claims that Great Canadian is a subject to a criminal investigation related to the money laundering scandal.
In September this year, the Canadian gambling operator found itself at the heart of a serious controversy after the newly-elected British Columbia government made public a year-old report, claiming rampant money laundering activity in Great Canadianās River Rock Casino Resort. However, the gambling operator asserted that it is not a subject of any criminal investigation. Shortly after that, OLG released a statement to support Great Canadian in its attempt to push back any rumors.
