OLG selects OGGLP consortium to run Toronto area casinos

PlayOLG online casinos and lottery not affected by tender

On Tuesday the Ontario Lottery and Gaming Corporation (OLG) announced that Ontario Gaming GTA LP (OGGLP) had won the tender for gaming in the Greater Toronto Area. Great Canadian Gaming and Brookfield Business Partners will each control 49% of OGGLP.

Clairvest Group Inc. will control 2% of OGGLP. Clairvest is a publicly-listed private equity management firm, that manages about $1.6 billion of equity capital.

The GTA Gaming Bundle comes with 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.

The operators are expected to make more than $70 million a year for the duration of the 22-year contract, keeping 70% of gaming revenue.

The companies won’t be getting a share of the growing online gaming operator known as PlayOLG which offers players in Ontario lottery, casino, and slot games online. PlayOLG joined British Columbia, Manitoba, Quebec and the Atlantic Provinces in offering online gambling in January.

Although the provincial government would prefer that people play only on PlayOLG, there doesn’t seem to be anything in the law telling them they must. Operators, on the other hand, may not fall into such a “grey” area, especially if they have offices in Canada.

Online gaming providers located offshore make virtually every casino game in the world available to Canadians online. Top game providers like NetEnt, Microgaming, and Playtech offer thousands of different slots, RNG table games, and Live Dealer games available 24 hours a day.

The choice of land based or online gaming isn’t “either or” in most cases. People enjoy going out for the night to enjoy the ambiance and social aspects of a large casino. They also like to gamble online with all the conveniences of home. The new facility at Woodbine could have as many as 8,000 slot machines and 400 gaming tables, giving people in the GTA even more options when they decide where to play.

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Slots enthusiast and avid online gambler, Lars has a passion for dispelling myths and providing insights into the industry from a nonbiased perspective. He is an editor to CanadianCasinos.ca and has been a contributing member since inception.

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