- Caesars Entertainment one of the three remaining competitors in the tender published by Canada’s OLG
- OLG’s decision could significantly impact the future of Caesars Entertainment
According to several news sources, Ontario Lottery and Gaming Corporation (OLG) has launched a tender looking for an outside operator for their casino and gambling services situated in the Greater Toronto Area. The tender encompasses Great Blue Heron Casino as well as Woodbine and Ajax Downs, two racetracks located in Toronto.
Three casinos in the running
OLG has notified the public that they’ve reviewed all the bids and have narrowed the choice down to three companies. One of them is Casino Entertainments, which seeks to expand its global presence and continue with the restructuring plans. The other two are Malaysian giant Genting Group and Canadian investment fund Brookfield Asset Management.
The value of the tender is estimated at around $72 million CAD, or around $58 million American. With the potential for signing the contract for a period of 20 years, it isn’t hard to understand why these big companies are very interested in getting in on the opportunity.
Big chance for Caesars
In addition to the 20-year contract, whoever wins the tender will also be given the first right for a new casino resort project in the Greater Toronto area. With all this on the table, the management of Caesars Entertainment, especially CEO Mark Frissora, is very keen on winning the tender.
A contract of this sort would play along nicely with the restructuring strategy Mr. Frissora has envisioned for the company. His plans include aggressive expansion as well as moving beyond gambling, and the Toronto area represents a prime location to start implementing these plans.
Frissora, who assumed his role in 2015, navigated the company through the complex bankruptcy process and is intent on restoring its former glory at all costs. After he had secured the bankruptcy protection a couple of months ago, he set the foundations for the company to start rebuilding.
So, while the OLG tender may be important to all of the three remaining suitors, Caesars seems to be the one with the biggest drive, as winning the tender would open many new possibilities, which is something Frissora and his company could really use right about now.
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