- The Greater Toronto area’s casino industry is expecting a boost from agreement
- Several other companies reportedly showed interest in becoming the operator
It is reported that Great Canadian Gaming has been chosen as partner for Brookfield Business Partners L.P to operate wagering in Toronto.
The former’s shares were halted by regulators last week because of the ongoing uncertainty about whether or not it would be selected to operate. But it will now be jointly responsible for the Greater Toronto area’s gambling sector.
Previous reports had already suggested that the Ontario Lottery and Gaming Corp was coming close to selecting a business partner that would oversee its casino industry.
And now, alongside the casinos in question, Great Canadian Gaming will team up with Brookfield Business Partners L.P. to take control of a mass of slot machines and other such services in and around Greater Toronto.
The agreement will span 20 years, making it vital for the area’s blossoming casino and betting industries. The two companies will jointly operate the area’s gambling facilities for a minimum of 22 years following the agreement.
Plenty of interest in the market
Perhaps unsurprisingly for such a large market the Ontario Lottery and Gaming Corp’s search for a private operator attracted a number of leading industry names.
Some reports suggested that Caesars Entertainment was eyeing the potential market. If true it’s hardly surprising considering Greater Toronto area’s current growth projection – which would add 400 gaming tables and around 5,000 electronic gambling games to selected establishments.
Other attractive points for potential operators included the projected increase in betting activity – the market only offers one casino, based rurally – two horse racing tracks, and several slot machines.
Malaysia-based Genting Group was also named as an interested party, as was Hard Rock International, which just recently backed out of a deal to operate a new casino resort in Cyprus.
However, in recent months, the operating company has unveiled its plans to spend more than C$320 million on the development and construction of a brand new integrated resort in Ottawa.
The finer details
In light of the decision, the Great Canadian Gaming-Brookfield Business Partners L.P. partnership will be responsible for the Woodbine racetrack, Great Blue Heron Casino, and Ajax Downs, among other venues.
As part of the new operating agreement, Great Canadian Gaming and Brookfield Business Partners L.P. will each hold 49% of the interest, while Clairvest Group Inc – a private equity management firm based in Toronto – will take the remaining 2%.
Great Canadian is set to operate the land-based casinos on behalf of the newly formed partnership.
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