We’ll soon find out who will be operating northern Ontario gaming facilities under Ontario Lottery and Gaming’s modernization plan.
“The announcement for the North Gaming Bundle is going to happen in the coming weeks,” said Tony Bitonti, OLG senior manager of media relations, speaking to SooToday Friday.
The specific date for that announcement is not yet known, Bitonti said.
Under modernization, one successful proponent will be awarded the right by OLG, with final approval by the province, to operate gaming facilities in each of the province’s bundle regions.
The winning proponent for the Northern Bundle will operate Casino Sault Ste. Marie, Casino Thunder Bay, OLG Slots at Sudbury Downs, as well as new gaming sites in North Bay and Kenora.
Is a new, permanent Casino Sault Ste. Marie in the works?
“The proponents have done tours of the facilities, so they know the structure in Sault Ste. Marie is basically soon to be at the end of its life, so that’s something they’re going to have to consider,” Bitonti said.
“They’re going to have to build two new facilities, one in North Bay, one in Kenora, and then they’ll make their decisions of what they want to do and the order in which they want to do it, what their priorities are, but I can’t speak to what the proponents are going to do.”
“They’re well aware of what the bundle looks like and what needs to be done,” Bitonti said.
The gaming modernization process has been carried out in stages across Ontario.
OLG issued requests for proposals (RFPs) for the North Gaming Bundle and the Southwest Gaming Bundle in November, 2015.
Up to five proponents were allowed for the RFP process, though Bitonti did not disclose how many proponents are now on the shortlist for the North Gaming Bundle.
“Each of the proponents in the RFP process have been talking to the communities, about each community’s needs and wants,” Bitonti said.
In North Bay, for example, community stakeholders have indicated to the proponents that a casino is not wanted on the waterfront, Bitonti said.
The service provider for the Northern Bundle, as with all bundles, will be signing a 20-year contract with OLG, Bitonti said.
OLG and the province will still act as overseers of Ontario’s lottery and gaming industry.
OLG made $2.23 billion from lotteries and gaming in 2015, with profits going back to the province for the operation of hospitals, community infrastructure and a host of other programs.
Under modernization of gaming facilities, the province aims to rake in an additional $900,000 in revenue annually.
Gaming employees will keep their jobs for at least one year after the proponents take over management of gaming facilities, Bitonti said.
“What we saw from the Eastern Bundle is they maintained the status quo, there’s not a lot of excess in these operations.”
OLG announced Sept. 23 it would change its RFP approach for lottery modernization, which concerns operations at OLG’s headquarters at Roberta Bondar Place.
“We made the decision to end the procurement process prior to receiving any bids…the original idea was to see if OLG could do better and earn more money for the province by going with a third party to run the entire lottery business, but after months of discussions with the interested proponents, the answer was no,” Bitonti said.
“We’re developing an adjusted lottery plan right now,” Bitonti said, adding details of that plan are still in development.
There are currently 593 employees at the OLG head office at Roberta Bondar Place on Foster Drive, and approximately 270 employees at Casino Sault Ste. Marie.
