Ontario Lottery and gaming company (the company responsible for managing commercial gambling in Ontario) chose Great Canadian Gaming and Brookfield Business Partner LP to manage three casinos in the Greater Toronto area. Under the deal, the two companies signed a 22-year long-term contract to operate the OLG slot in Woodbine, the OLG slot in Ajax Downs and the Mississaug casino located in the first casino in Mississaug.
The two partners will take over the day-to-day operations of the aforementioned casino properties, and as you can recall, OLG has announced a modernization plan to spur new investments in the gambling industry in the province. OLG’s purchase announced that it has a total of more than 4,000 game consoles, including three slot machines and 60 table games, and will expand to up to 5,000 electronic gambling game consoles.
Great Canadian and Brookfield were announced as equal shareholders with a 49% stake each, while ClareBest Group was announced to jointly hold the remaining 2% stake. Market prices for Great Canadian Gaming and Brookfield Business Partners have soared since the announcement.
Many casino supporters supported the project as the expansion was expected to bring widespread economic benefits to the local economy. Beyond that, large-scale expansion also means low unemployment and high economic activity. Many officials recognized the high correlation between casinos and tourism, hoping that the casino expansion would attract wealthy foreign visitors.
What is hindering the Canada-Brookefield casino expansion project
Four months later, the expansion project has not progressed by a single millimeter: OLG has signed a conversion and asset purchase agreement with Ontario Gaming GTALP (OGGLP) for the GTA Gaming bundle, but the deal is expected to close early next year, and if both sides offer customary deadlines, it will enter a 22-year long-term casino service (OS) contract (OGLP).
According to the project, the slot-only woodbine is expected to transform into a full-fledged entertainment center, and not long ago Great Canada Gaming’s Chuck Keeling explained that the two partners could not provide further details about the project at this stage, requiring the project to be discussed first with local, local, first-nation and third-party stakeholders.