The following is a letter from Nick Eaves, president and CEO of the Woodbine Entertainment Group:
As you are well aware, there has been a lot of activity over the last few weeks in connection with the Province’s stated commitment to a sustainable horse racing industry as well as the ongoing casino process.
Over the last 45 days, we have seen the following:
• On April 16th, the Executive Committee of the City of Toronto Council voted to support the city staff recommendation that the existing gaming operations at Woodbine be expanded to include live dealer table games. At that same meeting, the Committee also voted in favour of considering a downtown Toronto casino however, with significant conditions;
• On May 13th, Premier Wynne reiterated the Ontario Government’s commitment to a sustainable horse racing industry and asked the Horse Racing Industry Transition Panel (the Panel) to work with industry partners, the Ministry of Finance and OLG to develop a plan which, among other things, integrates horse racing with the province’s gaming strategy to offer new gaming products and generate additional revenue;
• On May 16th, Premier Wynne dismissed OLG Chair Paul Godfrey. One of the reasons she cited for this decision was their disagreement over integrating horse racing with the province’s gaming strategy. That same day, the OLG’s entire Board of Directors resigned;
• On May 16th, Toronto Mayor Rob Ford announced his decision to cancel a specially scheduled Council meeting to consider the questions of a downtown casino and expanded gaming at Woodbine;
• On May 19th, Toronto Councillor Mike Layton announced that he had secured the necessary support of 23 councillors for the special Council meeting to proceed on May 21st;
• On May 21st, Toronto Council voted 40-4 in favour of a motion rejecting a casino in downtown Toronto and 24-20 in favour of a motion opposing an expansion of gaming (live dealer table games) at Woodbine;
• On May 28th, the City of Vaughan Council considered and voted in favour of hosting a casino. The Town of Markham voted against a casino on that same date;
I recognize how difficult it is to fully understand what all of this means. What we do know is that the Premier and her government have stated and restated their commitment to a sustainable industry via the integration of horse racing and gaming. While this commitment needs to be more fully developed, it is the right direction and we are focusing our government relations efforts to ensure that this outcome is achieved in the optimal way.
In order to develop the most compelling model for integration, WEG has retained a financial advisory firm to work with us and with our gaming consultant. Over the coming weeks, we will be refining this model and working with the Panel, the Province and OLG to make certain that horse racing and gaming are integrated at Woodbine and Mohawk racetracks in a way that will help to ensure a sustainable, and indeed, thriving live horse racing product.
In terms of the City of Toronto, since the unexpected defeat of the Woodbine expansion opportunity, several councillors – including some who voted against Woodbine expansion – have expressed their concern over this unintended result and the potential consequences, particularly in light of the decision in Vaughan. We are working with councillors to ensure an appropriate process and timing for this issue to be reconsidered at Toronto Council and for the right decision to be made.
I want to assure you that we remain focused on and committed to partnering with all levels of government to ensure the sustainability of our company and the industry.
In the meantime, thanks to all of you we are regularly putting on an excellent product, servicing our customers and getting ready for our big events. This past Saturday night, Mohawk played host to three highly competitive eliminations, setting the stage for what will be a thrilling 30Th Pepsi North America Cup this weekend. And Sunday, powered by full and competitive fields, wagering on the card featuring the Woodbine Oaks presented by Budweiser and the Queen’s Plate Trial was a record $5,077,918, up 20% over last year. This is fantastic momentum which we must be sure to capitalize on.
Thank you for your ongoing support and commitment. I will continue to regularly communicate WEG’s progress.
Nick Eaves
President & CEO
Woodbine Entertainment Group
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