TORONTO, April 1, 2016 /CNW/ - The Ontario Lottery and Gaming Corporation (OLG) is announcing that it intends to add the two Niagara Casinos—Fallsview Casino Resort and Casino Niagara—to its modernization procurement process.
"Including the Niagara Casinos in the procurement process will ensure greater consistency in Ontario's gaming market and will maximize the benefit of modernization for the people and Province of Ontario," said Stephen Rigby, OLG's President and Chief Executive Officer. "It will make future capital costs of developing, expanding, improving and maintaining the Niagara Casinos the responsibility of a service provider—so public money is no longer used to cover these costs. It will also give the selected service provider the flexibility to operate the sites in the bundle more efficiently."
In order to include the two Niagara Casinos in modernization, OLG has notified its operator— Falls Management Group LP, acting through its general partner, Falls Management Company (collectively FMC)—that OLG will not extend the current operating agreement beyond its initial term, which ends on June 10, 2019. This is an option OLG has under the current agreement.
OLG estimates it will take up to three years to procure a service provider for the Niagara Gaming Bundle and enter into a new operating agreement. OLG is announcing its intention to include the Niagara Casinos in modernization now to ensure the selection of a service provider aligns with the end of the initial term of the current operating agreement with FMC. The announcement also allows OLG to:
- Plan for a smooth transition of operations to a service provider after June 10, 2019
- Provide notice that OLG intends to add the Niagara Gaming Bundle to the modernization procurement process to pre-qualified proponents that are actively participating in the RFP process for the North, Southwest and GTA Gaming Bundles, as well as to RFPQ applicants in other active Gaming Bundles
- Ensure the transparency of OLG's procurement process
OLG expects to release a Request for Pre-Qualification (RFPQ) for the Niagara Gaming Bundle in summer 2016.
OLG is continuing the procurement process for a new Niagara Falls Entertainment Centre. In November 2015, OLG released an RFPQ that outlines the opportunity to design, build, finance and maintain a new large-scale, high-quality entertainment centre in the City of Niagara Falls.
OLG expects to release the Request for Proposals (RFP) to pre-qualified proponents in spring 2016. The service provider OLG selects for the Niagara Gaming Bundle will also be responsible for operating the future Niagara Falls Entertainment Centre.
"OLG is proud to be part of the Niagara Falls community," said Rigby. "We continue to work with all stakeholders to help ensure the long-term competitiveness of the Niagara Falls market."
At approximately $2 billion annually, OLG provides the Ontario government with its largest source of non-tax revenue. Modernization will help OLG provide more money to Ontario for key government services.
OLG is the Ontario government agency that delivers gaming entertainment in a socially responsible manner. OLG conducts and manages gaming facilities, the sale of province-wide lottery games, PlayOLG Internet gaming, the delivery of bingo and other electronic gaming products at Charitable Gaming Centres and is leading the integration of horse racing into the provincial gaming strategy. Since 1975, OLG has provided nearly $42 billion to the Province and the people of Ontario. These payments to the province support the operation of hospitals, amateur sport through the Quest for Gold program, local and provincial charities and problem gambling prevention, treatment and research.
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