Canadian news sources have reported that the Ontario Lottery & Gaming Corporation (OLG) will select an external gambling firm to run its operations for casino and slot machine services within the Greater Toronto Area.
Launching a tender, OLG seeks a gambling enterprise to run its Toronto area racetracks of Ajax Downs and Woodbine as well as its Great Blue Heron Casino in Port Perry.
OLG governance is reported to have narrowed its selection to three operators, with US casino operator Caesars Entertainment competing against Malaysian gambling conglomerate Genting Group and Canadian private investor Brookfield Asset Management.
The tender is reported to be worth approximately CAD $72 million per year ($58 million), with a potential services contract in place for 20 years. Furthermore, it has been reported that the winning bid will be given ‘first right’ to build a casino project in the lucrative Greater Toronto area.
The Ontario government has decided to seek outside assistance in its management and upkeep of gambling properties, which will see the winning bidder revamp the OLG Toronto portfolio.
The governance of Caesars Entertainment is reported to want to punctuate its OLG tender, viewing the Toronto contract as key to expanding its international footprint in accordance with CEO Mark Frissora long term recovery strategy for the company post its 2015/16 bankruptcy restructure.
Pitching in a three-way battle, Canadian business news sources have stated that OLG tender will likely become ‘high stakes’ for all parties involved.