EDITOR'S NOTE: Subsequent to the publication of this article, lawyers for Gateway Casinos and Entertainment told OrilliaMatters that MP Pierre Poilievre’s statement included a number of inaccuracies such as “the company was just downgraded to junk status and its parent company lost 95 per cent of its value on the stock market before being delisted altogether,” which is false. Lawyers for Gateway advised further that Gateway is a private company and has not been listed on a public exchange and has not lost 95% of its value on any stock market
A long-time Conservative MP says Gateway Casinos and Entertainment, which operates Gateway Casinos Sudbury and many other gambling facilities, “swindled a naive prime minister out of $200 million” of taxpayers’ money, even though that money is a loan and despite the support the loan received from some Conservative MPs.
During an animated exchange with Prime Minister Justin Trudeau Wednesday in the House of Commons, Carleton MP Pierre Poilievre says Gateway is a “failing casino firm” and he chided Trudeau for “throwing away our money in this jackpot for casino insiders.”
Gambling on a casino bailout. pic.twitter.com/eG4ZNhIzNU
— pierrepoilievre (@PierrePoilievre) October 7, 2020
Poilievre is referring to the news that Gateway was provided a loan from the Canada Enterprise Emergency Funding Corp. under its Large Employer Emergency Financing Facility (LEEFF).
The agreement, announced in late September, provides Gateway with access to $200 million of liquidity.
“These funds will provide us with capital to support restarting our operations and returning people back to work when it is safe and viable to do so,” Gateway CEO Tony Santo said in an email to employees.
But Poilievre said the company is not deserving of the funding.
“The company was just downgraded to junk status and its parent company lost 95 per cent of its value on the stock market before being delisted altogether,” Poilievre said Wednesday.
“In fact, financial experts in Toronto say the company vastly overvalues its assets. But there is someone who would invest other people’s money in it — the casino just got the jackpot of $200 million from this government,” said the former cabinet minister in Stephen Harper’s government.
“Would the financial genius over there who invested $200 million of our tax dollars in this failing casino firm please stand up.”
Trudeau stood up and provided the following response.
“While the Conservatives play silly political games, we recognize the extraordinary situation Canadians are facing,” said Trudeau, who noted Canadians are “worried” about “how they’re going to make it through this pandemic."
Robert Mitchell, director of communications and public affairs for Gateway, said the MP’s statement contained inaccuracies.
“Mr. Poilievre’s comments contained a number of factual errors which have since been corrected with his office,” Mitchell told OrilliaMatters, an affiliate of Village Media, Sudbury.com's parent company.
He also said the casino company’s LEEFF application “had the support from MPs across the political spectrum … including Simcoe North MP Bruce Stanton and 10 other Conservative MPs who wrote letters of support on behalf of Gateway and our 8,000 employees across Canada.”
He also stressed the LEEFF funding will be repaid by Gateway.
“The LEEFF program is a loan that will be repaid,” said Mitchell. “We will use the funds to help re-open our businesses and get people back to work as soon as it is safe and viable to do so.”
He noted Gateway is “excited to welcome back many employees this week as we re-open a number of facilities today and Saturday.”
Gateway Casinos Sudbury is set to open its doors Oct. 10.
All Gateway Casino properties will be restricted to the government-mandated maximum of 50 guests, and will only include slot machines (at casinos where table-gaming is also offered).
Gateway has implemented a new reservation and virtual queue system that will allow guests to book their play time online, check-in upon arrival and safely wait in their vehicles until it is their turn to enter.
Due to the 50-customer capacity restrictions, properties will be open to invited My Club Rewards members only. Invited members will be notified by email with details on how to make reservations.
