TORONTO – A group headed by Great Canadian Gaming Corp. has won the right to operate two existing betting facilities in Eastern Ontario and the opportunity to build a new location in an area that includes Belleville and Quinte West.
The Ontario Gaming East partnership will pay $37.4 million cash and provide a further $13 million to cover operating expenses in return for a 20-year agreement with the provincial corporation responsible for betting and lotteries.
The agreement covers the Thousand Islands casino near Kingston and the slot-machine operation at Kawartha Downs, a horse racing track in the Peterborough area.
It also provides for a new gaming and entertainment facility for Belleville or Quinte West.
The Ontario Lottery and Gaming Corp says it expects a smooth transition in early 2016, with provisions for employees to remain in their current positions and locations for at least 12 months.
The deal also provides for benefits and a registered pension plan for eligible employees and leaves OLG as owner of key information about players and responsible for compliance with laws, regulations and payments to local communities.
Great Canadian Gaming (TSX:CG), a publicly traded company headquartered in Richmond, B.C., owns 50.1 per cent of the Ontario Gaming East Limited Partnership. Great Canadian has been in Ontario horse racing since 2005, at Flamboro Downs near Hamilton and Georgian Downs south of Barrie.