Ed James, owner of SSG Gloves, and the leading Standardbred owner at Grand River Raceway for 2011, took out a full-page ad in Monday’s edition of the Toronto Star, questioning the recent attack on the horse racing industry by the Liberal government and the Ontario Lottery and Gaming Corporation.
The ad, asking Ontarians to examine and rationalize the OLG’s move to end the slots-at-racetracks program, appeared at the back of the GTA section of the Star. The text from the ad is as follows:
TO THE RESIDENTS OF ONTARIO
One man’s opinion of a Government either lost in the fog or laying a smoke screen.
YOU DECIDE.
After 10 years of a successful and major income-generating contract for the Ontario Government and communities surrounding horse racing centres, in addition to the equine industry and racing operators, the Government has canceled the contract.
The profit split of the Slots-at-Racetracks program was: 75% going to the Government, 5% to surrounding communities (i.e. Windsor), 10% to the equestrian industry and 10% to the racetrack operators who provided the property where the slots are housed. Total Government income over the 10 years was over $16 billion dollars.
The apparent reason for the contract cancellation was the result of an analysis and recommendations of the Drummond Report, requested by the Government to find a solution to the spiraling deficits, created by the Liberal Government, in an effort to balance the budget.
In Chapter 17 of the Drummond Report pertaining to the Government’s business enterprises, various recommendations were made. The two main subjects were the Liquor Control Board of Ontario (LCBO) and the Ontario Lottery & Gaming Corporation (OLG).
LCBO: Recommendations were clear in Section 17-2 and hopefully will be followed.
OLG: The OLG recommendations were clear in Section 17-3:
1) *Close one of the two OLG head offices
2) *Close one of the two casinos in Niagara Falls
3) Allow slot machines in sites not co-related with horse racing venues i.e. bingo halls, etc.
4) *Stop subsidizing the purchasing and provisions of lottery terminals to point-of-sale locations and begin to introduce other points of sale for lotteries.
*Three out of four were cost reduction suggestions.
17-4 Recommended re-evaluation on a value-for-money basis, the practice of providing a portion of net slot revenues to the horse racing and breeding industry and municipalities in order to substantially reduce and better target that support.
(Freely translated by the Government: close the slots at racetrack program in spite of the contract. Some in 7 weeks, some in April of 2013 and open your own casinos for the benefit of yourselves and your casino operators)
Of the five recommendations pertaining to the OLG in the Drummond Report, three were cost reductions and two were income generators.
The Government chose to eliminate the income generators and ignore the cost reduction recommendations. I presume the three cost reductions went against the grain of the Government and might personally affect the lives of some of their individual appointments.
Better that than affecting 60,000 people, 31,000 full time, by putting them out of work.
The Drummond report refers to casino operators as from the ‘private sector.’ Let’s talk about ‘private sector.’
1) Caesars Windsor Casino is operated by Caesars Entertainment Corporation based out of Paradise Nevada. Do you call this the private sector?
2) Casino Rama is operated by Penn National Gaming from Wyomissing, Pennsylvania. How does this private sector benefit Ontario?
Both of these ‘private sector’ companies operate these casinos on a management fee basis – right off the top of the operation profits. Management fees can cross the border tax-free, funneling money into the U.S. casino operations. Great benefit to Ontario! But let’s give them more casinos; how about 29 of them in fact? Yes, that’s what your government had planned.
Maybe the current private sector managers have so impressed the Government in the past it might sway future opportunities the same way. Did you know that some large casinos operators in the U.S. have already hired lobbyists to present their case for inclusion in our Government plans for the future casinos to be built? Remember tax-free management fees going south.
Can you picture our Government’s negotiating teams dealing with these US lobbyists for the benefit of Ontario?
Not a fair fight, the lobbyists have so much to offer – and gain. They will be trying to trade a pork chop for a pig.
The senior management team of one Las Vegas casino, as stated in the casino’s proxy statement, earned the following income packages last year: the President’s earnings were $113 million and the CEO $16.5 million. Do we want Canadian casino operating to add to that?
Understandably, invasion and management of Ontario’s casinos would be an important accomplishment for this ‘private sector.’ Slots at Windsor Raceway were closed seven weeks after the OLG’s decision to “make it easier for Windsorites to get to a casino (versus driving to a racetrack) and enjoy the benefits and convenience.” That, I guess, is why there is a faux pas concern about the addiction of gambling; it seems ow government regards fall-out from gambling addiction as an enjoyment and benefit.
Visit Atlantic City sometime and see the people there on the streets enjoying the benefits – and just picture it – Ontario could have 29 scenes like this. Great vision for our province!
The spectre of potentially 60,000 Ontarians being forced out of work doesn’t concern our Government as much as possible increases in tax revenue by opening more casinos for imported private sector management teams.
It always makes me feel uncomfortable when the President and CEO of the OLG, Rod Phillips, can make a statement like, “At the end of the day the OLG’s role is to run gambling and lottery and the decision by the Government of where the money goes is a decision by the Government.”
After discussing our situation a friend of mine said, “Ramrod Duncan strikes again!”
Do you want to live in a northern spin-off of Atlantic City or Las Vegas? Do you want to see over 30,000 horses slaughtered along with the successful Slots-at-Racetracks program which generates over $1.1 billion annually to our province? Talk to your local MPP and ask this question. Why, ten years ago, did Government parties make a contract to benefit communities, the horse industry and a reasonable number of casino operators as opposed to now – as Liberal parties now choose to benefit foreign casino operators and Government coffers with a story of a future balanced budget based on gambling proceeds.
The Crown corporation OLG’s stated earlier, plan was to build 29 casinos throughout Ontario. These would eventually bring in $1.3 Billion for Provincial coffers.
The current slots at the races program brings in $1.1 Billion, why cancel?
Is there a hidden agenda?
If 64% of OLG’s current revenue comes from slots at the racetracks program and a large majority of race tracks involved will be without the slots at the racetracks program a year from now, where is the shortfall going to come from?
Possibly some casino contracts have already been let and will be ready to go in a year. If not, a $1.1 Billion shortfall is critical. Maybe not.
If the Government was willing to shed some light it would help.
Why do I feel like I’m in Denmark or Mexico?
Have the inmates taken over?
Someone should start to ask questions and get answers before the black hole of Liberal deficits gets beyond control.
Ed James
A concerned citizen, who happens to be a horse owner. Stay tuned.
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