Harness Racing To Lose Millions

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Published: August 13, 2011 09:10 am EDT

Accounting changes made by the Ontario Lottery and Gaming Corporation (OLG) are expected to cost the harness racing industry millions of dollars annually

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The provincial Liberal government has forced the OLG to change its accounting practises from Canadian Generally Accepted Accounting Principles to International Financial Reporting Standards. As a result, the OLG must now account for its promotional programs as a cost, resulting in a reduction of approximately $10 million to $11 million annually in net slots revenue to host racetracks, the harness racing industry and 22 host municipalities.

According to an article in the Windsor Star, Sarnia Mayor Mike Bradley is heading an opposition to the move and met this week with racing industry representatives. He is organizing a meeting with OLG officials on August 24.

Bradley said he is concerned the move breaches the original slots agreement made 12 years ago and that it may set a new precedent. “Our real concern is the OLG doing something like this in the future,” he was quoted as saying in the article.

“It’s really changing what net revenue means and we don’t understand how changing how you report revenues changes how you allocate revenues,” said Brian Tropea, general manager of the Ontario Harness Horse Association (OHHA), noting that the association is seeking legal opinion on the issue.

“For us, it’s mandatory, it remains in place,” commented OLG spokesman Tony Bitonti. “...We’re still paying a lot of money to them."

The article also notes that Windsor Mayor Eddie Francis has not joined Bradley's opposition.

“That’s been a very friendly and productive relationship, so I’m going to continue to work with OLG and maintain a friendly dialogue,” he said. “We’ve expressed our concern to them, I don’t think the door is closed on it.”

To read the Windsor Star article in its entirety, click here.

(With files from the Windsor Star)

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