The Ontario Liberal Government has annually raked in a cool $1.1-billion in revenue via the soon-to-be-scrapped slots-at-racetracks program. Apparently, according to an Ontario Lottery and Gaming Corp. spokesman, the organization has yet to figure out what percentage of gaming revenues it will have to give to the operators that will end up running the casinos outlined in the gaming modernization plan.
Under the widely-successful and mutually-beneficial slots-at-racetracks program, the Provincial Government takes in 75 per cent of slot-machine revenue. Racetracks, which play host to the machines, receive 10 per cent of the revenue, as does the horse-racing industry. Municipalities that host the racetracks receive five per cent of the revenues.
According to the end of a report by the Woodstock Sentinel-Review, OLG Spokesman Tony Bitonti, when asked what the province's take from the gaming endeavours under the plan will be in terms of percentages, answered with, “We don't know yet,” and “a lot of homework has to be done.”
On the surface, the position is a wildly risky and reckless roll of the dice, considering the stakes at hand in a deficit-mired province that will essentially put in upwards of 60,000 people out of work at roughly the same time.
Bitonti mentioned that the OLG will have to do a lot of homework on the matter, but many are saying that the Ontario Liberal Government did essentially zero homework when it made its decision to inexplicably scrap the slots-at-racetracks program and send a sizable blow to the provincial horse-racing industry (regardless of slot machines, the Ontario horse-racing industry currently contributes $261-million in annual taxes to the provincial government).
"…[The Drummond Report] didn’t recommend a shutdown of the deal, instead calling for 'a review and adjustment,'" Senator Bob Runciman has recently said via columns and his official political position on the subject. "There has been no review," he correctly asserted, adding, "and I’d hardly call the outright cancellation of the program an 'adjustment.'”
(With files from the Woodstock Sentinel-Review)
Don't get me wrong, I'm not a
Don't get me wrong, I'm not a Liberal supporter...never have been.
The reason for the cancellation of the slots at racetrack program is solely the desire of the OLG to modernize gaming. They did this to raise profits. THE OLG cannot run their current sites at a profit (4 lost money) that suits this current governments spending habits. See Sunshine list were they have over 300 managment types making over 100 K (let me see, currently 23 sites, 13 staff per site making over 100 K) plus head office types at a huge benefit load. They need others to run it so they can make more money and throw everyone else under the bus. They just don't care. Rual Ontario is doomed.
They don't look at the 340 million as a subsidy (call it what you will), really in a 16 + billion deficit world, it's nothing. There is a hidden agenda here no doubt.
Seriously, horse racing is going to be forced to reinvesnt itself. Time is ticking and all stakeholders need to get to the the table. OHHA needs to join the fight, not fight their own battle. It's time to unite and start taking a proactive approach to the sport.
It's has to be brought to it's knees to survive. There is no money to continue the status quo, that is clear and the tracks cannot support the industry on bet alone. The biggest problem in itself.
IMHO, we need a central plan for the good of the sport with a circuit model.
The days of competing with one another is gone...
Sorry to be blunt, blame the OLG for it's lack of foresight and inability to run a business that should be profitable and a greedy government.
Are you kidding me???? The
Are you kidding me???? The Liberal Government has cancelled a program that brings 1.1 billion dollars to the coffers plus $261 million in taxes collected. And they have no freaking defined plan on how to replace that revenue?? Did they ever consider the 30-60,000 people that will be out of work and their impact on social services?? They don't even know what percentage of the gaming revenue they will get from the new casinos??? Ontario, how can you let these clowns stay in power? I wouldn't let these idiots run a lemonade stand let alone the government of Ontario.
One of the basic assumptions
One of the basic assumptions the OLG is making is that businesses, such as bars and shopping malls want slot machines, and it will be easy to relocate the slots from racetracks. Unfortunately this is a complete misconception, most businesses don't want customers putting money they would spend in the business into slot machines, were they only make a small profit.It is obvious the OLG is spinning its wheels at present, because it cancelled a money spinner without having a replacement plan in place.The only way to find the truth is for the OLG to open its books, something which it will be lothe to do,however they can not hide the truth forever and eventually the cancallation of the SAR will be shown for the complete folly it was.
An election in Ontario would
An election in Ontario would probably help us, but we are not even sure of that.
What I believe we need is a Commissioner of Racing. This Commissioner would have control over all horse racing and would have to have jurisdiction over all race tracks and all horsepeople in the Province. This could have been done by the Ontario Racing Commission, but they are not doing their job, or at least this job.
It appears that OHHA, OHRIA, and other bodies can't get along or at least join together in one unified voice. A Commissioner could act in the best interests of all kkand present a united front to the government. He or she could be similar to the Commissioner of baseball. Our dispute with the Ontario Liberals and the OLG and Paul Godfrey might be resolved. If we can't do anything until the next election, at least we could be organized and prepared. Please give me your comments.
Get the facts...horse racing
Get the facts...horse racing is broken and the only way it makes any sense is to condense the business, tracks share resources, and start again. Most tracks giving away more money then what is bet makes no sense. With track owners not getting their 10% share essentially to lose money running off races...then thats a problem.
Track owners are not the problem, the greedy industry is.
The slot at racetrack program has been putting a band aid on a large wound...
Time to rebuild, no matter how much it's going to hurt.
In reply to Get the facts...horse racing by Time to Rebuild
I partially agree with you
I partially agree with you Mr Saunders it does not make sense to give away more money then the handle but the answer is not to have U.S casino's come in and take the profits south and out of the province. At least with the current system you can see where the money is going and I might add to good use by employing thousands of Ontarian's. With the new plan you won't see the money exiting the province, will that make you feel better because you can't see it ?
The SAR's program started because no municipalities wanted a stand alone casino and the gov. put it in where they would get the least red tape and where it was socially accepted. At the onset no one could predict what the financial return would be just like the OLG can't predict what their financial return will be with the new plan. All I know is when the SAR program started there was little competition from bordering states and provinces, now New York and Michigan are competing with us and you can ask the OLG the impact because they closed 3 border locations (Windsor,Ft-Erie and Sarnia) due to diminishing returns, so we are feeling an impact to the new competition.
Unfortunately new tracks were built in order to put SAR's in them and this was to the detriment of the horse industry. A surplus of tracks put pressure on the industry to produce more horses and have more racing and soon after the handle per race fell dramaticaly to the point where we are today. Did we need more tracks, NO, did the gov. need more SAR's YES. Also contributing to this situation is the fact that the OLG can't manage casino's of their own. If you want to see waste, the OLG paid 976 Million $ to their 18,000 employees last year and another 211 Million $ commissions to lottery vendor's for a grand total of 1.1 Billion $ off the bottom line. That is a big chunk of money.
Ohio, just opened a SAR program yesterday at Scioto Downs and the revenue sharing for horseman is 9%.
So you would think that the logical answer to all this mess is to re-negotiate the contracts down with horseman and track owners and not try to re-invent the wheel at tax payers expense with a plan that will in all prabability not succeed. But no, Mr. Duncan whom b.t.w was Minister of Energy on 2 seperate occasions and is big on changes regardless of the cost has a track record of 50% on very expensive changes. Check your hydro bill next time.
Needless to say the light bulb is brighter in the captionned picture of Mr. Duncan.
In reply to Get the facts...horse racing by Time to Rebuild
Jack Saunders, you must be a
Jack Saunders, you must be a Liberal supporter, you sound just like McGuinty and Duncan, uninformed. Most tracks do not GIVE away money, in fact the next time you hear of one doing so let me know please. Track owners not getting their 10% is news to me. The slot program is doing what it was designed to do, create jobs and revenue. Track owners make as much all the horsemen involved in putting on a program yet you say the industry is greedy,but not the owners? As for rebuilding, if its not broken don't fix it,maybe a tweak here or there.
In reply to Get the facts...horse racing by Time to Rebuild
Well Jack, there's no doubt
Well Jack, there's no doubt that the Horse Racing Industry has work to do if it wants to compete successfully with the Casinos, Lottery products, online poker & sports betting, bingo halls etc.
The Slots at Race Tracks program was a step the right direction. It has helped revitalize an industry that was struggling. Look at Europe - Horse Racing is popular with the young and the old - and is second only (in popularity) to soccer in several countries. Over there, you can basically drop into a corner store, place your bets, and go home and watch the races on one of several TV stations that are dedicated solely to horse racing.
The success of Horse Racing in Ontario can only be accomplished with the support of ALL the stakeholders - INCLUDING the Ontario Government.
Jamie Higgs What do you mean
Jamie Higgs
What do you mean no homework has been done? You would jeopardize 60,000 jobs on a guess whether a new program would generate more revenue or not. The government does studies on whether or not we need turtle crossing signs but don't take the time to study the impact of losing 60,000 jobs and whatever collateral damage that may occur to rural communities on something they" don't know yet,” and “a lot of homework has to be done. Are they not highly educated men and women that are looking out for the best interest of Ontarions? What gives the OLG the right to play with 60,000 lives on a hunch?
Did the government not say
Did the government not say that there would NOT be another profit-sharing agreement... looks and smells like that is what they are setting up now. but completely excluding the people of Ontario.
It is becoming apparent that
It is becoming apparent that Paul Godfrey and Rod Phillips don't know what they are doing,and the result of their incompetence will be a massive reduction in revenue from gaming in the province.They obviously promised the government they could increase revenues if it cancelled the slots at racetracks program and replaced it with casinos. and now they are finding after doing the maths that it was a huge mistake.
So it seems the Ontario
So it seems the Ontario Government and the OLGA would rather give millions and millions of dollars to American Companies in Management Fees (which are not taxed) rather than leaving things alone. At the same they want to destroy the industry and eliminate 6o,000 full time equivalent jobs not to mention loose tax money from the sale of goods and services that is generated by the industry. Ummmm wonder why nobody is questioning this part of the associated management fees. How does the Federal Government feel that their tax base is going to be severly eroded?????? Some more food for thought. Time to get the Feds involved. Ken
So it seems the Ontario
So it seems the Ontario Government and the OLGA would rather give millions and millions of dollars to American Companies in Management Fees (which are not taxed) rather than leaving things alone. At the same they want to destroy the industry and eliminate 6o,000 full time equivalent jobs not to mention loose tax money from the sale of goods and services that is generated by the industry. Ummmm wonder why nobody is questioning this part of the associated management fees. How does the Federal Government feel that their tax base is going to be severly eroded?????? Some more food for thought. Time to get the Feds involved. Ken
This earth shattering news
This earth shattering news is one of the first questions horse racing participants asked. I am glad these questions are finally being asked, and the OLG is being forced to admit they don't know the answers. Any legitimate business would have first fully investigated the full affect such drastic changes would make to their bottom line. I cannot imagine any major Casino operator such as MGM or Caesars giving the government 75% of their profits! I am hopeful tough questions will continue to be asked and pressure will continue to applied by powerful politicians so the government is forced to reconsider their obviously poor decision.