OLG, Liberals Will Get Less Money From Bingo Than Racing
Published: June 15, 2012 11:33 am ET
Last Comment: June 23, 2012 7:17 pm ET | 16 Comment(s) | Jump to Comments
After being extremely vague about the revenue distribution structure for Ontario's bingo halls, the Ontario Liberal Government, via the Ontario Lottery and Gaming Corp., has announced what the revenue sharing breakdown will be, and it is not even close to as good for the province or host municipalities as what it is under the slots-at-racetracks program.
The Wednesday, June 13 print edition of The Peterborough Examiner ran an article that quoted OLG Spokesman Tony Bitonti in regard to the revenue structure, which has been termed 'Net Win.'
Net Win will see revenues from bingo halls spilt four ways: the bingo hall operators will retain 47 per cent of the revenues; the OLG will scoop up 25 per cent; local charities will get 25 per cent, and the host municipality will get three per cent.
Under the current slots-at-racetracks program, which the Ontario Liberals inexplicably want to scrap, the province retains 75 per cent of the revenue derived from alternative gaming parlours housed within racetracks. The host racetracks receive 10 per cent of the revenue and the host municipalities receive five per cent. The horse-racing industry then receives the last 10 per cent --- which, in turn, creates $2-billion in annual economic impact; employs up to 60,000 Ontarians; is part of $261-million in annual monies for the province; attracts foreign investment and helps fund Ontario's healthcare and education programs.
A crucial element of the OLG's gaming modernization plan --- which was announced completely below the radar --- is that bingo halls will be the recipient of slots-like pull-tab machines.
The report has also quoted Bitonti as saying that the OLG's role in the new framework is to “come in and help revitalize the (bingo hall) industry.” It appears as though the move to help revitalize the apparently-important bingo hall industry would come at the expense of the 60,000-worker, $1.361-billion direct-revenue-producing Ontario horse-racing industry.
In regard to the bingo-hall industry, The Peterborough Examiner article quoted Bitonti as saying, “It’s an industry in decline, but because it serves the charities in the communities, we can’t let this die off.”
(With files from The Peterborough Examiner)