Gateway Casinos Uncertain about Planned CA$55.5-Million Investment in Kingsway Entertainment District

Leading casino developer and operator Gateway Casinos might have threatened the future of its Sudbury casino venue project as discontent towards the Kingsway Entertainment District plans increases by the day. The casino developer is willing to invest some CA$55.5 million into the gambling project part of the plan, but in the meantime, the Local Planning Appeal Tribunal saw an appeal against the potential Starlight Casino on site.

The casino developer is willing to set foot in the new entertainment project on the Kingsway East in Greater Sudbury and this has been the plan ever since its initial announcement back in June 2017. However, now the potential premium casino venue construction remains uncertain, as strong opposers are willing to go above and beyond and prevent the entertainment project from receiving a green light.

Factors Standing in the Way of Casino Venue

According to recently disclosed documents shedding more light on the casino venue’s future plans, the project is going to cost a total of CA$55.5 million to its developer. The project strives to provide the area with premium gambling experience and to draw as many casino patrons as possible. The venue will be able to provide as many as 250 individuals with full-time permanent job positions, judging by the initial estimations and projected offerings available on site.

It should be taken into account that the casino developer currently oversees operation of Sudbury Downs located in Chelmsford and the existing license for management is set to expire in March 2020. Plans for relocation of casino operation to the new entertainment zone have been considered for some time and the municipality has indicated its approval of this move, but appeals from the opposition and the general uncertainty around Kingsway Entertainment District’s future have stalled the process.

The summer of 2019 is projected to witness the official tribunal hearing regarding deadlines extension for the Kingsway project, but an ultimate decision would not be reached until the fall or even later. Many questions have been raised in the past few weeks, which is why Gateway Casinos made it crystal clear that the new casino venue remains up in the air.

Potential Seismic Activity and Appeals Add up to Uncertainty

Financial support of the project coming from the city will include the land lot purchase amounting to CA$10 million. The district is going to be constructed on a plot of land which belongs to Dario Zulich, owner of the Sudbury Wolves hockey team and The Five, an up-and-coming basketball team. As it has been indicated by the city, CA$8.5 million will be needed for the initial preparation of the area. It is going to be divided with Mr. Zulich and Gateway Casinos in a three-way agreement.

Recently it was pointed out that even though there is still a lot to be clarified and negotiated when it comes to the entertainment area, investors are ready to pour their cash into the project. Mark Signoretti, Ward 1 City Councilor stated that acting too soon at the expense of voters is not the best approach in this situation. Furthermore, recent findings showed that the area of the future Kingsway Entertainment District could be affected by earthquakes of various magnitude in the future.

The area is situated right above an active fault line, which is directly linked to the 850 seismic events which have occurred in the region. Developers of the project have commenced an evaluation of the potential risks for construction. This has been yet another factor influencing the future of Gateway Casinos’ planned gambling venue in the area, as more development is projected to take place over the upcoming months.