A revamped approach to gaming facilities in Ontario is good News – at least for the near future – for the Grand River Raceway here.
On Dec. 12 the Ontario Lottery and Gaming Corporation (OLG) announced changes to its plan to expand gambling facilities across the province – notably the bundling of existing gaming facilities.
Locally, the slots facility at the Grand River Raceway in Elora is part of the OLG’s “West GTA” bundle that also includes slots at Flamboro Downs in Hamilton and at Mohawk Raceway in Campbellville, as well as the OLG’s Casino Brantford.
The OLG has stipulated that any facility in the Waterloo-Wellington area has to be located at the Elora raceway, effectively killing the proposal for a casino in nearby Woolwich Township.
“What we’re looking at is one operator in each area,” OLG spokesman Tony Bitonti told the Advertiser. He said that approach will offer private operators “better economies of scale.”
He noted the OLG has launched a request for pre-qualification (RFPQ) from private companies interested in operating the facility bundles. He expects OLG to sign 20-year agreements with private operators, which can decide to expand the facilities. The plan does allow the addition of dozens of gaming tables at slot sites.
In the “West GTA” bundle, the operator would take over the Brantford casino. Lease agreements at the three slot facilities would be transferred to the operator.
Bitonti explained there is a lease agreement in principal in place for Grand River Raceway, which he expects to be signed “shortly.” He would not disclose details, but most lease agreements run for three to five years, so the slots facility should remain in Elora at least that long.
Bitonti said it is possible the private operator could relocate the gaming operation once the Grand River Raceway lease is up – but it’s not likely.
“In theory there is that potential … but we’re looking for operators to run those facilities where they are,” he said.
In fact, the OLG specifically chose certain locations – like Elora – to align the gaming facilities with existing horse racing operations, he admitted.
“Now we’re under one umbrella and we’re working with the racetracks to improve the consumer experience,” Bitonti said. “We want to ensure there’s a vibrant horse racing industry in Ontario.”
That statement seems to echo the sentiments expressed by Premier Kathleen Wynne in October when she was in Elora to unveil a five-year, $400-million plan for horse racing industry.
In an interview on Dec. 17 Dr. Ted Clarke, general manager of the Grand River Raceway, said the new OLG approach means the Elora track will be “in the loop” to be developed in conjunction with the gaming facility.
He noted plans to modernize the OLG included a integration of the gaming and racing industries.
“So a site like this is seen as a preferred site for gaming to be developed,” Clarke said. He added the intent is for both operations to work together to enhance revenues for the province.
Clarke said the bundling of facilities, particularly in the West GTA area, could provide some efficiencies in the operations.
“For us, I see this as the first step down the next path,” he said.
At the Dec. 16 council meeting Centre Wellington Mayor Joanne Ross-Zuj said she has been in touch with both the OLG and Clarke. She said Clarke seems pleased the OLG plan is moving forward.
After its RFPQ closes on March 13, the OLG will narrow possible operators down to three to five in each area and then invite those companies to submit proposals.
“There’s going to be a lot of interest,” Bitonti predicted.
While gaming facilities will be run by private operators, he stressed all locations will be overseen by the OLG.
