Casino

OLG Background

OLG is the steward for gambling entertainment in Ontario and their purpose is to:

• Promote Responsible Gambling
• Enhance Ontario's economic development
• Generate revenues for the Province
• Ensure the Public good

OLG's Gaming Position

OLG does not want problem gamblers playing their games - Responsible Gambling is a top business priority

Responsible Gambling (RG) has grown up dramatically since gambling expansion of 1990s:

• Ontario now has one the best Responsible Gambling structures in the world
• OLG’s role is now well defined. Strong supports will be part of the plan.
• OLG designs and delivers RG program with independent agencies
• No new forms of gambling are being introduced, and Ontario’s population is experienced with lottery and slots/casino gambling therefore a dramatic increase in problem gambling cases are unlikely.

OLG pledges the following to their players:

• To communicate how games work. To be clear, straightforward and offer you the relevant facts. 
• To offer you knowledge you can use. To guide you – as a new or experienced player – with advice and tools on how to set a game plan that helps you keep gambling as a positive entertainment option.
• To keep it fun. To show that smart, healthy play habits are engaging and worth your time.
• To be there when you need them. To listen, respond and offer assistance for getting help if gambling stops being fun.

OLG's Mitigation Strategy for Program Gambling

All OLG operators are required to adhere to rigorous external standards/controls including:

Prevention

OLG helps game users make informed choices by:

• Educating players on myths and facts; and
• Habitualizing safe play habits.

Remediation

OLG helps provide players with a bridge to help by:

• Interacting with players who may display red-flag behaviour
• Directing people seeking help to free counselling
• Offer voluntary self-exclusion

What are the social impacts of gambling on a community?

• Gambling is an activity that will always result in problem behaviour for a small portion of the population.
• Approximately 3.4% of adult Ontarians have a severe or moderate gambling problem – the second lowest rate among 6 Canadian jurisdictions.
• This rate is the second lowest among 6 Canadian provinces with populations greater than 1 million.
• Problem gambling rates are similar across jurisdictions and time periods world-wide: between 1% and 5% of adults.
• There is no clear evidence that gaming expansion results in an increase in crime rates.
• Two recent studies in Alberta found no significant statistical relationship between gambling and crime.
• Over the past 15 years of casino gambling in Ontario, mayors in all 23 host municipalities have anecdotally indicated that there is no correlation between gaming in their communities and crime rates.

What programs exist to help problem gamblers?

• OLG builds a Responsible Gambling program that supports players of all profiles.
• Training is provided to all front-line staff to recognize and respond to players who show behaviour signs that could suggest problems.
• Help is available at gaming sites and in Ontario communities.
• 170,000+ people receive information, support at gaming sites annually.
• 16,000+ have received provincially-funded gambling counselling since 2006.
• 15,000+ people are enrolled in voluntary Self-Exclusion.
• Education on safe habits: 150,000+ learn interactively through OLG’s gambling education program annually.
• All gaming sites have Responsibly Gambling (RG) Centres, and the largest ones have staff from the RG Council of Ontario, who provide information, support and referrals.
• OLG is also currently exploring new design features to support RG priorities, including:
  • Time and money limits built into slot machines;
  • Use of natural lighting;
  • Customer and RG-friendly ATM locations; and
  • Placement of clocks on walls.
• OLG has also received accreditation by the World Lottery Association for the highest level of RG framework.
• OLG is also pursuing “RG Check” – the world’s most rigorous standard for land-based gaming (RG Council.)
• Each year, of the $40 million OLG provides to the province for responsible gambling, the province dedicates approximately $28 million to provide gambling counselling services across the Province.
• Should a gaming facility be built in a municipality in Zone C7, the Ministry of Health would review case load requirements and ensure that appropriate free resources are available in the municipality.
• OLG's Responsible Gambling program is integrated with local social services, such as credit counsellors, addictions counselling, family support, etc.
• Staff from gaming sites and the Responsible Gambling Council, who run our support centres at sites, develop relationships to ensure that people who need help get to the services they seek.

Does a gaming facility generate the need for additional policing?

According to the Detachment Commander of the Huronia West OPP, based on the OPP’s experience in other communities, a gaming facility would not generate the need for additional policing in the community.

Over the past 15 years of casino gambling in Ontario, mayors in the current 23 host municipalities have anecdotally indicated that there is no correlation between gaming in their communities and crime rates. In Windsor, data from the Canadian Centre for Justice Statistics, Statistics Canada, shows that incidents of crime went down approximately 30% between 1998-2010 (Casino Windsor opened in 1996). In addition, two recent studies in Alberta found no significant statistical relationship between gambling and crime.

How many jobs are supported with a 300 slot machine gaming facility?

Similar size facilities in Ontario employ between 80-90 staff. Full-time and part-time staff compliments vary with each gaming facility. The required number of employees will be determined between the private operator and OLG. The number of jobs will depend on the business proposal put forth by the successful private sector operator. It will depend on the size of the gaming facility and any associated amenities, such as a hotel, restaurant or convention centre.

The private sector operator has the discretion of building a facility with up to the allowed range of slot machines, or less, depending on its business case. Host communities can benefit not only from the direct jobs in the gaming facility, but also from indirect jobs created as a result of hosting a local gaming site, such as construction jobs to build the facility, to ongoing landscaping of the site, to suppliers of food and beverage for the site, etc.

Would staff wages for a gaming facility be competitive to a tourism wage or an industrial wage?

OLG does not want to speculate on specific wages for a gaming facility in Zone C7, but as a comparator, OLG currently works with private sector operators at its resort facilities, such as Caesar’s Windsor, Fallsview, and Casino Rama and their wages are comparable to those paid by OLG for it’s currently owned and operated sites. Some of the resort facility operators provide better benefits than OLG and, in some cases, the pensions may not be as generous as that of a crown agency. The wages and benefits at a gaming facility in Zone C7 are expected to be fair.

What are the estimated revenues to the host community that could be generated by a 300 slot gaming facility?

It is estimated based on similar operations in other Ontario communities that a 300 slot gaming facility will generate between $1 million and $2 million of revenue per year. A more accurate figure will be available as the final number of slots for the zone is determined between the private operator and OLG.

How many gaming facilities are proposed within Ontario in the next few years?

As part of its modernization plan, OLG aimed to open five new gaming facilities in Ontario – one facility is proposed for the GTA and four are proposed for new communities, such as North Bay, the Belleville area, Kenora, and in the Simcoe County (Wasaga Beach/Collingwood area) known as Zone C7. Once completed, this would bring the total number of gaming facilities in Ontario to 29.

What type of approval process was set up to determine where the new casino would be located?

• A municipality must confirm it is interested in hosting a gaming facility;
• OLG must choose a private sector service provider for the gaming facility through a fair and competitive procurement process; and
• The municipality, the casino service provider, and the Government of Ontario determine the location of the site.

The successful proponent would need to work with the municipality on specific details, including a preferred location – just as would happen with any major development.

Municipalities would have a say in many of the aspects of the development, including location, building height, density. For the host community, zoning and development restrictions are key tools to ensure that regardless of what site is chosen it will benefit the community.

Before a site is built or relocated, the service provider must present a commercially viable business case for approval by OLG and the Government of Ontario.

When the OLG selects a private operator, is the contract between the OLG and the operator put in place for a defined period of time? Will the OLG review any agreements during the term of the contract?

All contract agreements with private sector operators will be for a specific amount of time and will vary from site to site. A private sector operator will be investing millions of dollars into a gaming site and will anticipate a contract agreement in which it can realize its investment. OLG will continue its conduct and manage role at the gaming site and remain the “operating mind” behind the delivery of gaming. After operations are in place, OLG will maintain control and oversight of the gaming business and will continue to hold responsibility for all critical decisions related to the operation of gaming, including:

• Strategic planning and market management;
• Gaming service/product offering;
• Financial management;
• Brand management;
• Service provider management;
• Risk management;
• Information technology; and
• Customer management.

How did the OLG select Gateway as the private operator for the gaming facility? 

OLG conducted a multi-staged fair and transparent procurement process to select private sector operators for its gaming sites. OLG issued a Request for Information (RFI), which was open from May 17, 2012 to July 4, 2012.

The RFI solicited input from industry experts about the viability of different locations for potential gaming facilities. The RFI process will be followed by a fair and transparent Request for Pre-Qualification (RFPQ) to pre-qualify potential operators based on their ability to operate a gaming facility to OLG’s standards.

OLG then issued a Request for Proposal (RFP), which was an opportunity for pre-qualified vendors to make formal bids. Once the RFP process was complete, OLG selected the vendor to become private sector operators of gaming facilities.

What is required from the municipality before an OLG gaming site can be established? 

Before OLG can establish a new gaming site in a municipality, the municipality must first do several things:

• Seek public input on the establishment of a gaming site
  • The municipality must ask the public what it thinks of establishing a gaming site in the community.
  • This is a requirement under legal regulation.
• Pass a resolution supporting the establishment of the gaming site
  • OLG will not establish a new gaming site within a community without clear municipal approval and support.
  • This is a requirement under legal regulation.
• Get zoning approval for a gaming site
  • Municipalities may want to zone to allow for various amenities at a gaming site such as slots, table games, entertainment venue, hotel, etc.
• Enter into a host municipal funding agreement with OLG
  • OLG pays a portion of revenues from its gaming sites to the municipalities that host them.
  • Council must endorse this base funding model agreement.

Does the OLG have guidelines or requirements for the public consultation process undertaken by a potential host municipality?

The OLG requires that a municipal council seek public input into the establishment of a proposed gaming site. If a municipal Council has determined that its community is prepared to be a willing host it must provide the OLG, in writing, a description of the steps it took to do so and a summary of the public input it received.

In addition, the municipal council must pass a resolution supporting the establishment of the gaming site in the municipality and give a copy of the resolution to OLG. The purpose of this process is to ensure that every municipality has consulted with its residents and businesses and is indeed prepared to be a willing host to a gaming facility. This is a legal requirement specified in the OLGC Act – Regulation 81/12.

What size of property is required for a gaming facility site?

The size varies from 3 to 8 hectares depending what other facilities are developed with the gaming facility.

What is the deadline for a municipality to indicate their interest in becoming a host community?

Before OLG can get to the next phase of the procurement process which is the issuing of the RFPQ, followed by the RFP, it needs to have clear expressions of interest from municipalities in the gaming zone. This will allow the prospective proponents to know which areas will allow a gaming facility. OLG understands and appreciates that public input is a vital and necessary step for municipalities to determine if they are willing hosts for a new gaming facility. OLG is aware that some municipalities may need more time, and is willing to accommodate that request within reasonable timeframes.

Is the OLG, as a crown corporation, subject to all municipal approval processes, planning or otherwise in establishing a gaming facility in a host municipality?

The new gaming facility, which will be funded and built by a private sector operator, would be subject to all municipal building permit and site plan review processes.

Did the Town of Wasaga Beach consult the public before announcing that it wanted to be a host community?

In September 2012, council, led by then Mayor Cal Patterson, decided to undertake a thorough public consultation process prior to making a decision to either express interest to host a gaming facility or oppose such an enterprise.

The following month, the four area municipalities hosted a joint public information meeting at the RecPlex that drew 500 people. OLG staff were present to answer questions. Members of the public were able to share their views with their council representatives.

The town took one more step. Also in October 2012, the town held its own public information meeting at the RecPlex. It attracted 350 people. Members of the public again had the chance to ask questions and state views. (See OLG PowerPoint Presentation)

What other type of consultation took place?

In September and October 2012, the town conducted an online and paper copy survey. Notices placed in major media advised of the opportunity to comment.

As well, the town established a dedicated “casino information” webpage where residents could read background information and e-mail comments to the town.

What type of participation was there for the online survey?

• Job creation;
• Revenue creation;
• Increased tourism;
• A year-round attraction in Wasaga Beach;
• The majority of respondents did not support a gaming facility in close proximity to the beachfront;
• Support for a west end location or the site that previously was home to Wasaga Waterworld;
• Some respondents also indicated that they would support a resort hotel-type development in conjunction with a gaming facility;
• Respondents indicated that a gaming facility would provide an opportunity for the town to have a higher profile while trying to attract a branded hotel; and
• Respondents that indicated a strong opposition to the gaming facility commented on concerns surrounding addiction and issues such as suicide, crime, prostitution, and substance abuse.

How were potential sites for a casino determined?

On November 6, 2012, town staff identified eight (8) sites that could potentially accommodate a casino based on appropriate zoning and suitable size. Two (2) private property owners also put their properties forward for consideration.

The following is a list of the eight sites town staff identified:

• Sterling Cook Site (Beachwood Dr. at Fairgrounds Rd.);
• DAS Development Site (Mosley Street at Beachwood Dr.);
• Wasaga Beach Business Park;
• Beach Area 2;
• Stonebridge Town Centre;
• Former Waterworld Site (River Road West at Theme Park Dr.);
• Woodlands of Wasaga (Opposite Wasaga Stars Arena); and
• New England Village.

The two sites put forward by the private sector are as follows:

• Links at New England Village Golf Course;
• Beach Area 1 property;

Also on November 6, 2012, Committee of the Whole recommended that council indicate to the OLG the town is prepared to host a 300-slot casino, subject to council indicating which sites it is prepared to support so that OLG can include the sites in the Requests for Proposals issued to the potential operators.

Did the Town take any additional steps that fall?

Yes, it did. Committee of the Whole considered preferences that it would like included in the OLG-issued RFP to potential operators. Committee recommended the following preferences be included in the RFP:

• Development of a hotel/conference/entertainment complex as part of the gaming facility within a reasonable timeframe;
• The operator and OLG are required to work closely with council regarding the location;
• The operator and OLG must ensure the gaming facility is fully integrated into the community;
• The private operator is required to work closely with the town regarding all matters pertaining to municipal processes, bylaws and regulations;
• The OLG and private operators are strongly encouraged to support special events in the host community through sponsorships and community events;
• The private operator is to work with the town to ensure that the gaming facility fits with the aesthetics of the town;
• The OLG and private operator shall engage with the town’s local health provider network, specifically Collingwood General and Marine Hospital and the Waypoint Centre for Mental Health Care, and use best efforts to establish agreements with these organizations to address potential customer health issues that may arise;
• The successful private operator is to make at least one public presentation to council on their proposal after it has been selected by the OLG;
• The operator is to use their best efforts to hire local residents to staff the new gaming facility; and
• The operator is to use their best efforts to hire local contractors and trades to construct the new gaming facility.

When did Council indicate to the OLG that it was prepared to host a casino?

On November 13, 2012, council passed a motion stating it is prepared to be a willing host of a casino. In addition, that fall, the townships of Clearview and Springwater indicate they are not interested in hosting a facility.

The town of Collingwood also indicated that it was prepared to be a willing host subject to conditions. Collingwood does not have a site zoned appropriately.

How did Committee of the Whole formally evaluate the 10 potential casino sites?

Committee of the Whole used eight weighted factors developed by staff at its meeting on November 20 and provided their feedback to council on locations that would be supported for a casino. OLG recommended that council not select just one site, as that would increase the price of the property and provide an unfair advantage. Staff were requested to tabulate the results and report to council.

Council met on November 27, 2012 and passed a motion to submit four properties to the OLG as potential sites for a casino.

What sites did the town finally identify to the OLG?

The four (4) sites were put forward by the Town, in no order of priority, are as follows:

• DAS Development Corporation property (located at the roundabout);
• Stirling Cook Holdings Inc., property (Fairgrounds Road and Beachwood Dr.);
• Sceptre Development Inc., property (across from the arena); and
• True-Star Development Inc., property (the former Waterworld site);

When was the beachfront site added?

In October 2015, at the request of the Economic Development and Tourism Department, council considered adding Beach Area 1 and 2 to the list of potential sites for a gaming facility.

After a public open house on December 5, 2015, the sites are evaluated using the same criteria used to evaluate the other selected four sites. They score 70 points each compared to between 79 and 90 points for the other four sites.

On December 15, Committee of the Whole recommends that council add Beach Areas 1 and 2 to the list of sites for consideration by the selected operator.

When did OLG select a casino operator?

On March 14, 2018 the OLG selected Gateway Casinos and Entertainment Ltd., as the preferred operator for the central gaming bundle which includes Georgian Downs, Casino Rama and the new casino slated for Zone C7.

Gateway must determine whether it wants to locate in Wasaga Beach or Collingwood.

What is Gateway Casinos and Entertainment Ltd.?

Gateways Casinos and Entertainment, which was established in 1992, is one of Canada'a largest and most diversified gaming companies. Gateway now has over 8,500 employees and operates 26 gaming properties in British Columbia, Alberta and Ontario. These gaming properties include over 400 table games and nearly 14,000 slot machines, 84 restaurants and bars, and 561 hotel rooms.

Gateway's success is built from four distinct casino brands: Playtime, Cascades, Starlight and Grand Villa which they will look to introduce into the Ontario market. 

Gateway currently operates 11 sites in Ontario and are proposing to rebuild casinos in existing cities where they operate including London and Sudbury and new casinos in North Bay, Chatham, Kenora and in Zone C7.

Did the Town advocate for the casino to locate in Wasaga Beach after the operator was selected?

Yes. Economic development is important to our community. In the spring and summer of 2018, town staff and elected officials met with representatives from Gateway Casinos and Entertainment Ltd. to explain the benefits of locating in Wasaga Beach.

When was it announced that Gateway would locate its casino in Wasaga Beach?

On October 11, 2018, the Town of Wasaga Beach announced that Gateway had selected the municipality as the preferred location for a casino. The announcement was made just days before the municipal election.

On October 22, 2018, Wasaga Beach voters went to the polls. Nina Bifolchi was elected mayor and Sylvia Bray was elected deputy mayor. Elected as councillors were David Foster, Stan Wells, Mark Kinney, George Watson, and Joe Belanger.

The mayor-elect became aware of a draft memorandum of understanding (MOU) with Gateway to locate the casino at Beach Area 1, subject to a number of incentives offered to Gateway with a value of between $26.1 million and $38.9 million. The previous council had not directed staff to draft such an MOU and the previous council had no knowledge such an MOU was being worked on at the staff level.

The new council was sworn into office on December 4, 2018.

How did the new council respond to the draft MOU?

On January 31, 2019, Committee of the Whole reviewed the draft MOU and the potential cost of the proposed town incentives offered to Gateway to locate at Beach Area 1. Committee of the Whole passed the following motion:

“That Committee of the Whole recommend to Council that it not approve the provision of the following incentives to Gateway Casinos and Entertainment Ltd. to locate a casino at Beach Area 1:

• Purchasing seven properties to form part of the site where the casino would be located
• Construction of a 300-space parking structure at the beachfront
• Construction of 100 underground parking spaces

Further, that Council indicate to Gateway Casinos and Entertainment Ltd. that it is prepared to work with the company to locate the proposed casino on any of the five sites identified by council as being suitable for the gaming facility.”

Council ratified the motion on February 19, 2019.

Has Gateway ever appeared before council since it was announced the company is establishing a casino in Wasaga Beach?

Yes, representatives from OLG and Gateway made a presentation to the Committee of the Whole on February 21, 2019. Rob Mitchell, a spokesperson for Gateway, said they are looking forward to and are committed to establishing a casino in Wasaga Beach. Mitchell noted that Gateway is currently doing its due diligence on its preferred site. You can watch the presentation to council here (starting at 53:20).

When did Gateway announce its Wasaga Beach location?

Construction started in the fall of 2021.

The site is at 88 Lyons Court.

In July 2022, the company announced it was holding a job fair for the new casino.

Gateway said the $34.3-million project is creating 140 new jobs for Wasaga Beach.

The company officially opened the casino on Nov. 23, 2022.