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.

(Standardbred Canada)