New Toronto Casino, Ontario iGaming Stifling First Nations Ops Like Great Blue Heron – Seeks Better Deal

new_toronto_casino_ontario_igaming_stifling_first_nations_ops_like_great_blue_heron_seeks_better_dealtijAccording to a report on CTV National News, the owners of the Great Blue Heron Casino, the Mississaugas of Scugog Island First Nation (MSIFN), north of Toronto, believe they got a raw deal from the government with the launch of iGaming in Ontario and new land-based operations in the area. The Great Blue Heron Casino is situated in Port Perry and it opened in 1997.

Great Canadian Casino Resort Toronto opened recently and the billion-dollar property along with new venues in Ajax and Pickering, not to mention the advent of commercial “free-market” online casino gaming in the Ontarian province, have the First Nations operator more than a little nervous about the future of its operations that provide much-needed revenues for the tribe. Their Chief, Kelly LaRocca. States it a bit more boldly and believes the government has broken promises and shorted the community on agreed-upon operating terms.

Owned Operated and Managed by Three Different Entities

The MSIFN owns the casino which is managed by Ontario Lottery and Gaming Corporation and operated by Great Canadian Entertainment. An agreement by all three parties entered into in 2016, and spelling out the MSIFN’s expectations does not rhyme with the reality on the ground today, according to the Chief.

I’ve had major concerns around each casino opening and expansion,” LaRocca said. “It’s an existential threat for our economic driver and the community here. The community feels they were misled by the government.”

One bone of contention seems to be live entertainment that Great Canadian has booked at all properties in the area, except presumably Great Blue Heron, with Live Nation even though there is a new entertainment center slated for the older casino. Chief LaRocca said nobody has informed her of an opening date for the 500-seat venue, but other reports indicate an opening in the fall of this year.

The Chief said, “I’m not seeing a guarantee that the list of entertainers will be shared amongst the [Great Canadian Entertainment]

facilities.”

The casino has seen other recent capital improvements including an expanded gaming area with new slot machines and table games as well as a 100-key hotel that opened a free short years ago.

However, the Chief must look out for the welfare of the Nation that relies on revenue from the property it owns – in fact, it’s so important that all of the parties will be involved in a mediation that will take place to see if all the terms of the 2016 agreement are being met. The mediation could also result in more gaming seats being opened at Great Blue Heron to help it meet the targets promised. The casino transitoined from a “charity casino” to a commercial casino in 2016 with the agreement.

According to the Chief, the casino is“the economic foundation and lifeblood of <the>community. It has brought us clean drinking water, enhanced health-care services and education,” she said.

No Delusions about Mediation

LaRocca explained that the community has clarity in their expectations of what mediation can bring,

You know, if parties come willingly to the table and open to all matters of possibility, then a mediation works well. If parties come to the table closed and with preconceived notions of how things ought to go, with no room for movement, then really, it’s not meaningful open discussion. So we’re just trying to be cautious with what our expectations are and willing to go the distance should we need to go to mediation.

The Chief says the Pickering casino violates a proximity agreement in the 2016 document and says they were not consulted on that before the Pickering venue was approved and opened.

“We’d like the agreements that we entered into in 2016 to be honored. What that means is to have a protected territory that is honored by the OLG.

“The way they handled Pickering and Ajax… we will be looking for them to acknowledge it and for some kind of compensation for that.

She’s also concerned about the effect of iGaming on the market, fearing the opportunity for people to simply go online to play casino games is costing them money.

We’re interested in discussing iGaming and the rollout of that and the impact on gaming in our community, in our facility, and on other land-based facilities,” LaRocca said.

I’d be mighty upset at the onset of iGaming, especially after having poured in hundreds of millions of dollars into various land-based gaming facilities, only to turn around and have their market share scuttled. But I suspect that the service providers have been compensated for that.

The 2016 agreements states in part: “The Province and the First Nation intend that the Great Blue Heron continue to operate and be commercially viable.

However, the Chief sees the proliferation of newer and bigger casinos as an existential threat to the Great Blue Heron.

The Ford government have broken their word to our community. It’s hurting a lot of Indigenous people and we are going to have to take issue and fight against the cannibalization of gaming.”

Source: Facing commercial competition, Great Blue Heron tribal casino owners look for better deal with Ontario government, CDC Gaming Reports, July 5, 2023

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Billion Dollar Casino Resort to Open in Ontario as iGaming Suggests Q1 GGR up 350% Y-o-Y

bIllion_dollar_casino_resort_to_open_in_ontarioGreat Canadian Entertainment has announced that Great Canadian Casino Resort Toronto is set to open June 20, 2023, at 5:00 p.m. local time. The highly anticipated opening, next to Woodbine Racetrack, will open a huge gaming floor of more than 300,000 square feet and all of the Las Vegas-style amenities Canadians have come to expect from the legacy lottery casino operator.

Meanwhile, Alcohol and Gaming Commission of Ontario subsidiary, iGaming Ontario’s (iGO) spokespersons were at the Canadian Gaming Summit in Toronto last week and iGO’s Martha Otton, executive director told a panel discussion and its sizable audience that the sectors participants are “crushing it”.

Neither Great Canadian’s press release nor iGaming Ontario’s comments addressed any possibility of unmovable objects being met with irresistible forces.

Landmark Development

Great Canadian Entertainment is betting on its in-person offering of entertainment, massive gaming space with over 4,800 slot machines and 145 table games situated in 328,000 square feet of gaming space – Canada’s largest casinos and one of the biggest in North America capturing in-person-gamblers’ attention and holding it through other amenities as well on 33-acres of fun with a great location near the Highways 401 and 427 interchange.

In addition to innovative modern architecture and a location adjacent to the popular Woodbine Racetrack, visitors will also find a 400-room hotel, a vast array of on-site dining, and a 5,000-person live entertainment venue.

While the new venue there cost some $1 billion it is also expected to generate about $500m in annual economic impact.

Great Canadian Entertainment CEO, Matthew Anfinson said of the opening: “We are thrilled to announce that our highly anticipated new casino will open on June 20. With meticulous attention to detail, state-of-the-art amenities, and a commitment to exceptional guest experiences, our landmark entertainment resort is a game-changer in Toronto,” said the CEO.

The company noted that the existing Casino Woodbine would continue operations without interruption until the new venue opens for a seamless transition. The release also noted that there will be a “PlaySmart Centre on the gaming floor, filled with engaging interactive tools and valuable responsible gambling resources available for all players.

Ontario iGaming “Crushing It”

While the first quarter of business for iGaming in the province isn’t complete, so there are no final numbers available yet, Martha Otton of iGo told attendees at the Canadian Gaming Summit in Toronto on Wednesday that GGR or gross gaming revenues were “3.5 times as large as Q1 last year, “ according to a report on CDC Gaming Reports.

Other panel members discussing the first full year of legalized and regulated iGaming in the province included board chair of iGaming Ontario, Dave Forestell; Ontario Attorney General, Doug Downey, and Tom Mungham, chief executive officer of AGCO – the Alcohol and Gaming Commission of Ontario a crown agency responsible for the actual regulation of alcohol, gaming and horse racing sectors and cannabis retail stores in Ontario.

A study commissioned by iGO and provided by Deloitte was released at the discussion which estimates some 12,000 “full-time-equivalent” jobs had been created by liberalizing online gambling in Ontario and had boosted the province’s GDP contribution of some CAD$1.6 billion with $900m of that on labor income.

Of the more than 12,000 jobs, Otton said: “…whether they’re direct or indirect jobs in the market and an average salary well above the provincial average. They’re good jobs for this province coming here.

The Deloitte report, “Economic Contributions of Ontario’s Regulated iGaming Market,” not only examines the economic impact of a more openly competitive model in the province but also the decision to keep the lottery involved. The former model was run through a hybrid crown corporation with the government being one stakeholder and the Ontario Lottery being the other. The current model brings dozens of competitors to the market while maintaining ties to the lottery.

The Deloitte report projected the potential for an additional 10,000 new jobs, a further boost to $4.7 billion in annual GDP, and the possibility of breaking the $2b mark in government revenues within the first decade of operations.

The report said that igaming employment is over 40% more lucrative than private sector employment with average earnings of over $100,000 per year and noted that some sectors participating include those with skills in mathematics, technology, engineering, and science.

Government sector benefits would include a boost in revenue from last year’s $470 million provincial earrings to nearly one and a half billion in revenue in 2031-32 based on the 20% revenue-share model used in Ontario; federal revenue increasing to ^47m from $238m, and a nearly two-fold increase in revenue for Ontario municipalities from $54m to $115m.

Source: Ontario’s regulated online gaming market generates 12,000 full-time jobs, CAD$1.6B economic impact, in first year, CDC Gaming Reports, June 14, 2023

Great Canadian to open Casino Resort Toronto on June 20, G3 Newswire, June 14, 2023

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Caesars Windsor Operating License to Expire, Ontario Opens Competitive Bidding

Caesars Entertainment’s operating license at Caesars Windsor will expire in 2025. In anticipation of reaching a new partnership with the Las Vegas Strip firm or a new gaming management entity, the Ontario Lottery and Gaming Corporation (OLG) this week opened up a competitive bidding process.

Caesars Windsor Ontario Lottery OLG casino operator
Caesars Windsor in Ontario has an operational agreement in place with Caesars Entertainment that runs through 2025. In anticipation of renewing the contract or finding a new partner, the casino’s owner, the Ontario Lottery and Gaming Corporation, is conducting a competitive bidding process. (Image: Caesars Windsor)

The OLG on Wednesday initiated its Request for Pre-Qualification (RFPQ) for its Windsor casino. The RFPQ, the OLG explained, is the first step in the procurement process to select the casino’s next operator.

OLG is advancing plans that will support the long-term vibrancy and excitement of the casino experience in Ontario,” said Duncan Hannay, the president and CEO of the OLG. “Releasing the RFPQ for the Windsor casino is the first step in selecting a highly qualified service provider that will ensure the long-term competitiveness of the site while continuing to generate economic benefits for the local community and for Ontario.”

To prequalify, interested firms must demonstrate to the OLG that the organization has a lengthy track record in managing a large casino resort such as Caesars Windsor. Companies that prequalify will advance to the Request for Proposal (RFP) phase of procurement.

Caesars Windsor is near Detroit and features 750 hotel rooms. The casino floor offers 2,230 slot machines, 85 table games, and a Caesars Sportsbook. The resort also has six restaurants and four bars, plus the 5,000-seat Colosseum theater.

Caesars Favored

The OLG says the casino operators that qualify for the RFP will be given the opportunity to present their ideas for the future of Caesars Windsor. In the second round of the bidding process, the OLG will supply bidders with documents and information outlining the opportunity and the sort of information the government is looking for in a proposal.

The OLG is a Crown corporation owned by the Ontario government. Formed in 1975 with the purpose of using lotteries and gaming to generate provincial tax revenue, the OLG today owns the province’s lotteries, charity gaming businesses, Aboriginal casinos, commercial casinos such as Caesars Windsor, and racinos.

The OLG partners with both public and private companies to manage its locations. While Caesars Entertainment is a publicly traded firm, the Great Canadian Gaming Corporation and Gateway Casinos, which operate numerous OLG casino properties, are privately held.

Caesars Entertainment has operated the Windsor casino throughout its entire existence, which dates back to 1994 when the venue opened as the first commercial casino in Ontario. Caesars is reportedly interested in extending its OLG contract and is the presumed heavy front-runner in the competitive bid.

Contracts Uniform

The OLG’s brick-and-mortar casino portfolio includes 28 locations. The OLG’s gaming partners all utilize the same formula to decide the amount of the gaming proceeds that must be shared with the government unit. Those proceeds are predominantly allocated back to the host community.

The City of Windsor’s revenue share from Caesars Windsor in the fourth quarter of 2022 was a little more than $2 million. Since its opening, the casino has benefited Windsor with more than $80.3 million.

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