The Ontario Lottery and Gaming Corp. expects to pick the company that will operate a casino in Sudbury by early next year, city council was told Tuesday.
Jake Pastore, the OLG's director of municipal and community relations, and Tony Bitonti, senior manager of media relations, updated councillors on the long-delayed modernization program. When first announced in 2012, the OLG aimed to pick an operator by early 2013. But the complexities of the process, as well as changes at Queen's Park, meant long delays and the RFP for the northern bundle was only issued recently.
“The train lost a little steam,” Bitonti admitted.
The RFP requires the winning bidder to operate casinos in all five communities in the northern gaming bundle – Sudbury, North Bay and Kenora, as well as Sault Ste. Marie and Thunder Bay, which already have casinos.
City council passed a motion four years ago supporting a casino for the city, prioritizing help with a new OHL arena and convention centre.
Once chosen, the operator for Sudbury will take over the slots facility at Sudbury Downs, which is currently renting space to the OLG.
When asked whether the operator will stay at the Downs, Bitonti said he couldn't say, because once a provider is chosen, “it will be up to them what they want to do – whether they want to stay there, expand or relocate.”
Ward 3 Coun. Gerry Montpellier wondered whether the new operator would restore harness racing to the track, which ended in 2014 when owner Pat MacIsaac couldn't reach a funding deal with the province.
“Is horse racing coming back to Sudbury Downs?” Montpellier asked.
“The OLG doesn't make the decision on horse racing dates,” Bitonti replied. “We're just a tenant at Sudbury Downs.”
While they administer the $500 million fund the province set aside to subsidize racing in the province, he said it would be up to the operator and the Downs whether to try and reach another funding agreement to restore racing.
Several councillors asked if the city could negotiate with the operator for additional revenue.
“They are a new pot of money that is coming to the city,” Pastore replied. “You can sit down and negotiate.”
Ward 8 Coun. Al Sizer asked how much of the revenue generated at the casino comes from out of town.
Pastore said about 35-40 per cent of the revenue stays in the city, but couldn't immediately say how much of the traffic at the slots are visitors.
With so many casinos planned for the North, Sizer questioned whether there would be a net benefit to the city.
“I'm not certain how many new dollars it's going to bring in the community,” he said.
Ward 12 Coun. Joscelyne Landry-Altmann wondered how firm the dates are now, considering previous predictions haven't come true.
“What assurances do we have that we are closer to 2017 than 2020?” Landry-Altmann said.
Bitonti replied that the successful eastern gaming RFP has provided a successful template for the OLG to follow, and there has been strong interest in the northern gaming bundle.
“We are very close,” he said.
Mayor Brian Bigger said Greater Sudbury is the biggest market in the North.
“I think that bodes well for Sudbury, based on the projections you've provided us,” Bigger said.