Three groups vying to operate the casino in Windsor
By AM800 News
Three different groups are vying for control of the casino in Windsor.
For the first time since the casino opened its doors 30 years ago, the licence to operate the slot machines and blackjack tables is up for grabs.
The Ontario Lottery and Gaming Corp., the provincial agency that owns the property, is in the final stage of reviewing offers as part of the process.
The Globe and Mail reports that while the process is meant to be secret, three gambling industry sources say there’s a three-horse race for a property that draws millions of tourists to the border city.
The company that has run the casino for three decades – Las Vegas-based gambling powerhouse Caesars Entertainment Inc. – faces the prospect of being usurped either by Bally’s Corp. , which was built from casinos and a brand that Caesars sold, or Indigenous-owned Mohegan Gaming and Entertainment, which operates two casinos in Niagara Falls, Ont.
The Globe and Mail is not identifying these sources because the OLG prohibits them from publicly speaking on the selection process.
Spokespersons for the OLG, Caesars, Bally’s and Mohegan declined to comment.
Globe and Mail reporter Andrew Willis told AM800's The Morning Drive the process is fairly transparent and we know what the OLG is looking for.
"Caesars or anyone else who wants to run the property, they have to guarantee the province a base level of revenue from the gaming tables, so there's a risk for the casino operators," he says. "Then after that the government is looking for the casino operators to invest in the property. So for example, bring in more games, increase the digital output, anything to bring in more revenue."
Willis says the revenue then gets split between the operators, who keep 70 per cent of revenue over a set threshold, and then the province also gets a part of the take.
"First and foremost, the province is looking for an operator who promises them a lot of money in the future," he says.
Caesars Windsor casino floor (photo by AM800's Kathie McMann)
The OLG is expected to announce the new licence holder by this fall. If the agency picks a new operator, it would take over in 2025.
The OLG pays a portion of its casino revenues directly to the city of Windsor for hosting the casino, handing over a total of $88-million over the past three decades. The quarterly payments amount to 2.5 per cent of the city’s annual budget.
The OLG’s goal with the new licenses is to increase the province’s take, while encouraging operators to invest in facilities.
In the past, the agency and casino companies simply spilt gambling revenues. Now, operators must guarantee a pre-determined annual payment to the OLG. The companies get to keep 70 per cent of revenues above this amount.