Ontario Slots At The Track Program To End March 2013

[pezz97]

Unbelievable


At a press conference today (Monday), OLG Chair Paul Godfrey and Minister of Finance Dwight Duncan announced the release of a report that indicates the province's slots at racetracks program will end by March 13, 2013.

While the OLG has indicated they plan to continue offering slots at some racetracks where there is customer interest, according to OLG CEO Rod Phillips the relationship would be a landlord-tenant based agreement.

Presented publicly in its report "Modernizing Lottery and Gaming in Ontario," the OLG made three key recommendations to reform the province's gaming and lottery industry including ending Ontario's slots at racetracks program in 2013.

These three recommendations are as follows:

    To become more customer focused.
    Expand regulated private sector delivery of lottery and gaming.
    Renew OLG role in oversight of lottery and gaming.

With these three recommendations, the OLG suggests allowing for slot facilities beyond horse racing tracks so that sites can be located where, according to the OLG "there is customer interest."

Since 1998, Slots at Racetracks have provided approximately $3.4 billion in slot revenue to the horse racing industry. As long as slots facilities are linked to individual racetracks, the OLG feels it "is unable to consider alternate locations for gaming sites", claiming that "over time this has resulted in the location of gaming facilities in places unrelated to customer interest."

"We're going to look at [the slots at racetracks locations] all on a one-to-one basis," stated Godfrey, noting that the OLG will consult with the municipal councils and the province will develop land-based "gaming zones" within the province.

"I'm sure in some areas there will still be slots at racetracks. In other areas, I'm sure we'll consider alternate sites," said Godfrey.

The report recommends that this relationship be changed to allow for moving, changing, or otherwise improving land based gaming in the province. The OLG recommends ending the Slots at Racetracks funding model though OLG does plan to continue offering slots at some racetracks when there is customer interest. During the press conference, Duncan stated that the government has "given [OLG] the green light for everything that's in there. All the recommendations have been accepted by the government."

Godfrey confirmed that a casino for the GTA will happen, but didn't offer comment on possible sites and wouldn't offer comment on whether or not Woodbine will get that casino.

The Ontario Horse Racing Industry Association will issue a statement in reaction to this news and Trot Insider will post it as soon as it's available

[careless hal]

Turn off the lights, the party's over!

[Just Saying]

Turn off the lights, the party's over!

yup

[LVGaryD]

I doubt if they will follow the recommendations to the letter. Some casinos will emergw, but the large tracks will keep their slots.

[CyberChamp]

Unreal.   

[sea biscuit]

The revenue earned from the spinoffs related to the horse racing industry were tremendous.

They have just given up close to $1.3 billion to save 345 million which the slots at race tracks earned for the Ontario govt each year.

Its true the some of those tracks in Ontario like Woodstock and Dresden and a few more were nothing more than white elephants.

Some of these tracks had a handle of no more than 10 grand on any given day and they were shelling out 80 to 90 grand in purses alone.

With all the subsidies they got over the years they did nothing to improve their product and expected that the slots money will continue and go on forever.

The govt should have chopped of these white elephant tracks from the slot program a long time ago.

Gone are those days when young trotters who go no faster than 203 or 204 racing for purses of 50 grand or more.

[sea biscuit]

The Ontario Horse Racing Industry Association (OHRIA) reponds"


The Government of Ontario's plan to cancel the OLG Slots at Racetrack Program will prove costly, the President of the Ontario Horse Racing Industry Association (OHRIA) is warning.

Ontario's horse racing industry employs over 60,000 Ontarians, supports rural Ontario economies by spending more than $2 billion a year, and generates $1.1 billion per year in slot machine profits for the Government of Ontario.

"We find it deeply irresponsible that the Minister of Finance plans to throw 60,000 Ontarians out of work and add $1.1 billion dollars a year to Ontario's deficit. That is just what he will do if the OLG Slots at Racetrack Program is cancelled," said Sue Leslie, President of OHRIA.

The OLG Slots at Racetrack Program is the most profitable form of gaming for the Province, generating more profit than casinos and lottery tickets combined.

"It makes absolutely no sense for the Government to continue to push less profitable forms of gaming, when over the last 14 years the horse racing industry has proven to be it's best partner. Tearing up that $1.1 billion dollars in profit for the government to chase what will become a highly controversial and less profitable vision, just isn't responsible," added Leslie.

http://www.standardbredcanada.ca/news/3-12-12/ohria-responds-dwight-duncan-costing-ontario-60000-jobs.html

[sea biscuit]

WEG's response

http://www.horse-canada.com/horse-news/woodbine-speaks-up/

[sea biscuit]

The Ontario Govt announced today slot operations will cease for Windsor raceway, Hiawatha Raceway in Sarnia and Hiawatha Horse park (T-bred) at Fort Erie.

The money train roller coaster has come to a sudden stop. The ball has started to roll and we don't know yet where it will stop.

Windsor raceway as expected has started to feel the pinch of the govt's decision to withdraw the slots on race tracks program as they owned and managed the two white elephant tracks namely Dresden and Woodstock I mentioned in my earlier post.

Windsor raceway opened its doors to business in 1965 and they were doing just fine for the next 34 years even without slots.

In January 1999 OLG offered them the slots on race track program with a healthy 25% commission for whatever they raked in with slots. Now with the Govt's decision to withdraw the program they find themselves in a real quandary.

Please read this report

http://www.windsorstar.com/news/jobs+lost+slams+door+raceway+slots/6298252/story.html#ixzz1p6HjbOP2

[jordanjacob]

new like this makes it very difficult to continue to stay in this business

it was very hard getting in this winter and with many horses expected to cross the border after the summer may be nearly impossible to get raced more than once every three weeks except for series races next winter

[Just Saying]

Hi JJ! Nice to see you back.

The trick-bag of slots at tracks has always worried me. Pols can say at any time, "Oh, that money is so much more needed for 'blah blah blah' that we can't possibly leave it in the horseman's acct... let's just cut that % out and keep the casino part." The tracks have a far lower overhead on the casino part than the racing part, so they'll just become casino operators.

IMO opinion, if we can't figure out how to stand on our own we are toast.

[sea biscuit]

The Ontario Horse Racing Industry Association (OHRIA) has increased the exposure for its value for money campaign both over the airwaves and on roadside billboards.

This billboard above was spotted outside Brantford, Ont.

[careless hal]

new like this makes it very difficult to continue to stay in this business


IMO opinion, if we can't figure out how to stand on our own we are toast.


Two very true statements. My question is "Who's next"?  I don't know about anyone else, but I had not heard anything about this until it took place. No gradual phase out, just Boom, it's gone.
I'm sure that those who dropped some big dough buying at the sales recently are thrilled.  Now they are screwed.  I don't think you will see slots brought to any track in the U.S. where they don't exist now.  I know the horsemen's association will fight, but  the general public doesn't give a damn about horse racing.