Wednesday, September 19, 2012

The City of Hamilton Is At The Plate...

Today, the City of Hamilton is meeting with the OLG and Great Candian Gaming Corporation to discuss the future of Flamboro Downs and whether or not they would be willing to be hosts for the OLG.  You can view it here or review the agenda.

Here is a brief overview:

The OLG, when asked, made it very clear that they are "Not in the business of Horse Racing", and is currently having outside negotiations with potential private sector operators within the zoning boundaries of the City of Hamilton before the City has even made a decision with regards to being a host.

If a casino is granted to another Municipality within the zoning boundaries of the OLG, the City of Hamilton will receive NO revenue from that Municipality.

The OLG relies on two specific words in the majority of their answers to the City of Hamilton -- "Not Defined".  When the City asked what the zoning boundaries are, and why they keep changing, the OLG's response is "They're not defined yet."  When the City asked what the new revenue amount would be if they choose to be a host, the OLG responded with, "Not defined".  When the City asked if they could review the RFP's (Request For Proposals), the OLG responded with, "The way in which these would be reviewed and considered have not be defined at this time".

This is what the City of Hamilton would like before making a decision with the OLG:

1)  Negotiate an extended multi-year lease arrangement with Flamboro Downs and/or extend the lease for 18 months until the 2014 Provincial Election.

2)  Include a Referendum on the 2014 Provincial ballot or procure a Referendum sooner and have the Provincial Government pay for it.

3)  The City would be involved in any planning, building, regulating and legislation which would be incurred by any modernization, expansion, or construction of any new casino facility.

4)  The zoning boundaries be clearly defined by the OLG and not subject to change midway through negotiations to benefit the OLG.

5)  Generated revenue from the OLG to the Municipality must be clearly defined in order for the City to actualize their 2013 Municipal budget.

6)  Answers as to why the OLG has a "unique" relationship with the First Nation's, Casino Rama in Orillia, and if this "unique" relationship is available to the City of Hamilton in supporting Flamboro?

Out of the $40 million allocated to gambling addiction in Ontario, only $307,000 is provided to the Municipality, including Hamilton, with Flamboro Downs ranking 8th out of all facilities according to the OLG.  The OLG also stated that the Ministry of Health disperses those funds overall.

The City of Hamilton's greatest concern is why the Provincial government and the OLG is rushing this process along so fast - They change legislation to suit them, create ammendments to support their own agendas, ask Municipalities to be willing hosts to casinos with absolutely no information, no concern for it's taxpayers, and no concern for this city's future.  This "now or never" tactic is being held over the City of Hamilton's head and they fear not only losing horse racing at Flamboro Downs, but lose the choice of an informative decision.  They're basically signing under duress if they choose the OLG's proposal at this point in time.

Just another day in OLG paradise......UGH!!


Stay safe, keep your hooves on the ground, and keep reaching for the wire...

Sunday, July 8, 2012

Life Is Tough Sometimes

A gorgeous day at the races at Dresden Raceway turns into a tragedy in the 10th race.  Mystic Pat, an eight year old bay gelding was doing awesome coming to the half.  Driver Donnie Rankin was holding his horse in a great position until something happened.  The horse was pulled up quickly on the turn and Track Superintendent Scott Dubuque was there to assist.  The horse was in distress, the left rear ankle appeared to be broke, hanging there with just the skin and tendons holding it.  Driver Donnie Rankin pulled up the horse and brought it towards the exit and removed the race bike as everyone waited for the groom to run to the rescue.  I watched it unfold and I quickly remembered the day when the Kentucky Derby winner Barbaro broke his right hind ankle/pastern in the 2006 Preakness...the EXACT same thing...the ankle was swinging, only this time, a bone was sticking out.  I knew in a split second that there was no hope for this horse....you just know....deep down, the outcome. 

The most important thing is to get the horse somewhere quite, away from everything.  The horse is still blowing, the adrenaline is still rushing through his veins.  He knows something's not right but he's trusting you.  His groom rushes to get rid of the equipment, with the hopples being the hardest because of the injured left hind.  What do you do?  The horse is blowing from being pulled out mid-race and I'm trying to comfort him.  Scratching his mane and forehead, talking continuously to him, telling him he did good, and that's it's going to be ok.  Where's the vet, where's the vet, I say to myself.  The left hind jerking up in pain every two seconds.  He knows it's not good.  I can tell by looking in his eyes.  He's looking at me like, "Tell me the truth, what's gonnna happen?".  I can't, as I keep telling him that everything's gonna be ok, and that he did good.  What am I suppose to say?  "You're gonna be euthanized"?

Odds are, even if they could have stabilized it, which they couldn't have, he would have succumbed to laminitis...guaranteed.  I just keep scratching behind his ears and along his mane and over his forehead and kept making a "cooing" noise that seems to be comforting to horses.  I felt like throwing up.  I kept looking in his eyes and he kept looking back at me as if to say, "Thanks for being here".  He knew.  Deep down, he knew.  The vet arrives with the big needle, again, I felt like throwing up.  He's standing there, quiet now, knowing the outcome.  He was aware of everything around him.  I talked to him and told him that he was gonna be reunited with all the greats...Niatross, Abercrombie, Barbaro, Keystone Raider and I told him to say "Hi" to Martha Maxine for me.  I kissed him on the face and told him I would one day see him in Equine Heaven.

I can't explain the feeling you have when one minute the horse is breathing in front of you and the next he's dropped on the ground.  Lifeless.  You wish to God there would be a way to fix this type of injury.  Everything's great on them but the ankle.  It seems like such a minor body part to fix.  Not the case with horses.  A cruel anatomical joke in the equine world.  I walk away as the needle is injected.  I can't bare to see him fall to the ground.  As I'm walking away, onlookers say, "There he goes, he's down."

See you in Equine Heaven Mystic Pat, you were a great warrior, and special thanks to those who assisted:

Scott Dubuque; John Ritchie; Kevin McCorkle; Darell Vleeming



Stay safe, keep your hooves on the ground, and keep reaching for the wire!

Friday, July 6, 2012

Here Comes Da Judge!

A class-action lawsuit could be in the future for the Ontario Provincial Government if OHHA has its way!


OHHA's general manager, Brian Tropea, has gone on the record as saying that OHHA lawyers have looked into and are considering a class-action lawsuit in relation to the Ontario Liberal Government pulling out of the Slots-At-Racetracks agreement!

"The OHHA is looking at all legal options," Tropea was quoted as saying yesterday in an article by the Barrie Examiner. "A class-action lawsuit is definitely something our lawyers are looking at."

The report has also quoted veteran racehorse owner Tony Tangereda of Kettleby, Ont. as saying that the situation has been "terrible" and that the Ontario government "should be happy with the money they’ve had. Now they’re putting 50,000 people out of work who will have to collect welfare. They (horsepeople) don’t know anything but horse racing.”

Tangreda continued, stating, “Without the slot machines there will be no way (for racing) to survive. There will be no money coming in. I normally keep 15 horses and now I’m down to seven. I’ll decide where to go from there if there is no slot money coming in. I’m not going to keep horses if there’s no money to race.”

The article also features a rare comment from a member of the province's upper-echelon driving colony, Mike Saftic.  "If the purses get cut and the horses go away, the race tracks are going to close down,” Saftic was quoted as saying. “There’ll be no place to make a living. There’s no way we’re going to survive.”
Standardbred Canada

OLG AT FAULT?

When the Slots At Racetrack Program was introduced, an obligation was placed on the OLG to consult with the horse racing industry (OHRIA specifically) and the ORC and develop benchmarks for monitoring the progress and success of the Program on an annual basis.  No benchmarks were ever developed and no annual consultations were held.  The Program continued to operate within a vaccuum.

Furthermore, from time to time operational decisions were made by the OLG in its legitimate interest but without regard for their potential impact on the horse racing industry which, inadvertently, ended up competing directly with the racing industry. (ei: The expansion of Ceasars in Windsor, the construction of the Point Edward Casino)  Card table gaming should have been introduced into "border" raceway facilities such as Windsor, Fort Erie, Hiawatha, Rideau Carlton and Woodbine (who competes with Niagara Falls and Orillia), with a share of the revenue going to the horse racing industry.  This would have aided the industry with the direct competition coming from the U.S.

Many citizens of Ontario are wagering on-line on horse races, with the internet sites being off-shore.  Revenue is flowing off-shore with little return to the horse racing industry except for a small payment for the racing signal. The Ontario government should permit the horse racing and breeding industry to engage in internet wagering on horse races and to regulate the sites through both the Canadian Pari-Mutuel Agency and the ORC.
Excerpts from: It's All About Leadership; Stanley Sadinskey, William McDonnell, Jane Stewart-2008



Federal and Provincial governments share jurisdiction over the Agricultural sector, with Federal legislation paramount in the event of a conflict.  At this point it is now the Federal government's duty to intercept the Provincial government's decision to annihilate an entire sector of the Ag industry-Cause "Houston...We have a Conflict!"


Stay safe, keep your hooves on the ground, and keep reaching for the wire!








Sunday, May 20, 2012

The Universe is Calling-Are We Listening?

Sometimes the universe has a unique way of including us in its master plan by providing us with subtle, yet obvious clues, that if we really open our eyes, we can see.  This is one of those times....

Not since 1978, with Affirmed and Alydar, have we witnessed two three-year-olds who have the makings to put horse racing at the forefront of the sports world once again.  With hearts of steel, raw power, and unquestionable determination, Bodemeister and I'll Have Another have given the industry a new lease on the Sport of Kings.  Would you call certain similarities a coincidence?  Maybe-but if margins are an indication, perhaps I'll Have Another has a Triple Crown in his future.  Affirmed won the Derby by the identical 1-1/2 lengths over Alydar, and then beat his rival by the same neck margin in the Preakness.  With polarities reversed, the similarities are astounding.

Affirmed and Alydar in the 1978 Kentucky Derby

I'll Have Another and Bodemeister in the 2012 Kentucky Derby

Affirmed and Alydar in the 1978 Preakness

I'll Have Another and Bodemeister in the 2012 Preakness


With the Ontario Standardbred industry crumbling at our feet, we need this.....We need this horse to win the Triple Crown, because he's not only representing thoroughbred racing, he's representing every working horse out there that trains their asses off day in and day out to go and race.  We've been telling our government how important this industry is and it seems to be falling on deaf ears....So without getting any more political, when asked if it's time for a Triple Crown Winner, my answer is simple....Yes, I'll Have Another!


Stay safe, keep your hooves on the ground and keep reaching for the wire!






Friday, March 16, 2012

Politics 101

For those of you who have not read the Commission on the Reform of Ontario's Public Services...

Here is a recap:  The government of Ontario owns four GBE's (Global Business Enterprises), each of which returns significant revenues to the province.  Government Business Enterprises are government organizations that:

*  Are separate legal entities with the power to contract in their own name;
*  Have the financial and operating authority to carry on a business;
*  Are principally focused on selling of the goods and services to individuals and non-government organizations; and
*  Are able to maintain their operations and meet their obligations through revenues generated outside the government reporting entity.

The four GBE's are OLG (Ontario Lottery and Gaming Corp), LCBO (Liquor Control Board), OPG (Ontario Power Generation), and Hydro One.  These four play a critical role in the province's fiscal condition.  In 2010-2011, the four combined to produce net income of $4.6 billion and since 2006, these four organizations have provided an average combined net income of $4.3 billion. 

The combined net assets of the four GBEs amounted to $17.6 billion at the end of the last fiscal year, about 13% of the government's total assets.  With $8.6 billion in net assets, OPG makes up the largest share of assets, followed by Hydro One ($6.2 billion), OLG ($2.4 billion) and LCBO ($0.4 billion).


The OLG's Part in the Fiscal Plan & Recommendations

Focusing more specifically on the OLG; they are required under legislation to remit to the province a "win contribution" of 20% of gaming revenue from the privately operated Resort Casinos and Great Blue Heron Slot Machine Facility.

The OLG provides significant net income to the province, but operational efficiencies could be explored to improve the company’s margins while continuing to respect social responsibility and meet its conduct and management requirement for the operation of all lottery schemes. For example, a number of questionable business practices should, at a minimum, be reviewed from a value-for-money perspective.

*  OLG maintains two offices, one each in Toronto and Sault Ste., Marie;

*  OLG continues to operate Casino Niagara despite the opening of the permanent and considerably larger Niagara Fallsview Casino Resort in 2004;

*  The Slots at Racetrack Initiative, which allows slot machines to be co-located at racetrack facilities only, earmarks a share of revenues generated from slots for racetrack owners and horse breeders.  This amounted to $334 million in 2009-2010.  Municipalities that play host to a racetrack also receive a share -- 5% of proceeds from the first 450 slot machines at the facility and 2% for each machine over that.  This totalled $78 million in 2009-2010, and

*  OLG purchases and provides lottery terminals to point-of-sale locations.

Finally, OLG should continue to seek new and innovative ways to deliver gaming in Ontario to increase its revenues. These include expanding existing business lines, creating new business lines (as it is doing for Internet gambling), and leveraging further private-sector involvement. In all such ventures, the OLG must remain mindful of its mandate to promote responsible gaming.

Recommendation 17-3:  Improve the Ontario Lottery and Gaming Corporation's efficiency through, at a minimum, the following measures:

*  Choose one of the two head offices;

*  Close one of the two casinos in Niagara Falls;

*  Allow slot machine operations at sites that are not co-located with horse racing venues; and

*  Stop subsidizing the purchase and provision of lottery terminals to point-of-sale locations and begin to introduce other points of sale for lotteries

Recommendation 17-4:  Re-evaluate, on a value-for-money basis, the practice of providing a portion of net slot revenues to the horse racing and breeding industry and municipalities in order to substantially reduce and better target that support.

 Recommendation 17-5:  Consider directing the Ontario Lottery and Gaming Corporation to expand its existing business lines, develop new gaming opportunities and make effective use of private-sector involvement.


Ok, let's break this down;  There are so many cost-cutting areas that the OLG could focus on WITHOUT ending the partnership with the horse racing industry, that it'll make your head spin!  Hopefully future newspaper headlines will say "OLG Closing Their Sault Ste. Marie Head Office", or "Casino Niagara Ceases" (It's important to note that there is also Seneca Niagara Casino and Hotel directly across the border in Niagara Falls, NY).  They could also start introducing other point-of-sale locations that would better accommodate patrons geographically and/or demographically. 

Personally, I think it very unfair to end the contract outright with the horse racing industry but still collect on the revenue generated by patrons who still are betting on the horses.  Maybe I'm blind but in "Recommendation 17-4", I read the words "Re-evaluate", not "End the partnership outright with the horse racing industry".  We can ask ourselves, "Was the industry making boatloads of cash before the Slots at Racetrack partnership agreement began in 1998?"  The answer is "No", however, the positive ripple effects because of it extend much further than the racetrack only.

Within two weeks the OHRIA had a billboard up-and-running for their "value4money" website, which, don't get me wrong, is fantastic, but why couldn't we have had billboards up two years ago actually promoting growth within our industry?  Why did it take the ending of a lucrative partnership with the OLG to start promoting ourselves?



Did we really do our fair share as an industry to keep growing?  Imagine a billboard two years ago that read:


As an industry we must hold some accountability, and as well, we should ensure that our industry continues to grow and prosper with or without the aid of others.

"If you have no will to change it, you have no right to criticize it."
~Anonymous



"Stay safe, keep your hooves on the ground, and keep reaching for the wire!"

Thursday, March 15, 2012

It's A Numbers Game...Or Is It?

The OLG's fiscal year runs from March to March, with that being said, if Windsor, Hiawatha, and Fort Erie close on April 30, 2012, there's an estimated revenue loss of $100 million for the year; an estimated $4.5 million loss to the three municipalities involved, and no where to go for the estimated 2,059,846 million patrons that frequented these three casinos during the year. 

It's pretty clear why these three casinos were targeted first; with Hiawatha Horse Park in direct competition with the Point Edward Casino, which is approximately 11 minutes away;  Windsor Raceway Casino, well, that's a no-brainer, it's taking money away from Ceasars, which is about 16 minutes away; And Fort Erie was only standing on two legs to begin with since they were eyeing at closing that establishment two years ago.  With it being in direct competition with the Niagara Consolidated casinos, seemed like a logical choice.

Fort Erie, which was established in 1897, is regarded as one of North America's most picturesque racetracks, and is filled with racing traditions...but apparently it's "getting in the way" of the almighty dollar!  If people have no qualms about bulldozing over Windfield Farms, because of highest and best use issues, then why would people care about ANYTHING horse related and ANYTHING to better it?  E.P. Taylor is probably rolling over in his grave right now!


Similar Issues Across The Border?

An excerpt from the Daily Chronicle states:  "Back in October of 2011, former Illinois Gov. Jim Edgar has been lobbying in favor of expanding gambling at Illinois' struggling horse tracks by adding slot machines under a bill passed by the Legislature in the spring. Edgar and others argue the machines could help save Illinois’ horse-racing industry, which many believe is on its last legs after the amount of money wagered last year plunging to a 35-year low.

'The [horse racing] industry is going to rise or fall on this,' said Edgar, who recently was among a delegation of horsemen that visited Springfield to lobby on the bill’s behalf. 'If it doesn’t happen, you could see horse racing pretty much disappear in Illinois.'

The measure certainly has the potential to bring more revenue to the tracks. But whether it would save them is less certain, and opponents aren’t sympathetic to the decline of the state’s oldest form of legalized gambling – already propped up, for now, with subsidies from Chicago-area riverboat casinos.

'If that sport is past its time, and people don’t want to go anymore, they should just let it die,' said Doug Dobmeyer, spokesman for the Task Force to Oppose Gambling in Chicago. 'Horse tracks are for horse racing, not mechanisms to get more people to gamble.'

Other states have found 'racinos' draw more people, even if they didn’t translate to actual increases in wagering on horses. Indiana’s two racinos, each allowed to have 2,000 slot machines, have seen their adjusted gross receipts surge from a combined $392 million in the 2009 fiscal year to $457 million last fiscal year. That’s despite seeing the amount of money wagered on horse racing drop from $190 million in 2005 to $139 million last year...."

In my opinion, the most idiotic quote in the above article comes from the spokesman for the Task Force to Oppose Gambling in Chicago; "If that sport is past its time, and people don't want to go anymore, they should just let it die"  Um, excuse me, horse racing in North America dates back to 1665, and as far as harness racing goes, what the hell does he think chariot races were back in the Greek Olympics in 648 BC?  Horse racing will continue, despite every negative obstacle that becomes lodged in its way.  The real focus should be on how the industry can become self sufficient, but at the same time, move forward with the times. 

Here's What The Racing Industry Will Lose

1.  Horse Numbers and Value
          a)  broodmare numbers and broodmare values decline
          b)  stallion numbers and stallion values decline
          c)  a decline in overall horse numbers
          d)  decline in value for yearlings
          e)  decline in overall horses for racing

[A survey by Equine Guelph and OHHA (using data from 1998-2002) was done to show the benefits of the Slots at Racetrack partnership; the average increase in value per horse was 114% for mares, 372% for stallions, 109% for yearlings, and 43% for horses racing]

2.  Employment
          a)  loss of workers; including both owners and employees
          b)  loss of full and part-time licensed grooms
          c)  loss of full and part-time licensed trainers

[From 1998-2002, there was a reported increase of 48% in workers (owners and employees), full and part-time licensed grooms increased 66% and 73% respectively, and full and part-time licensed trainers increased 27% and 59% respectively]

3.  Investment Values
          a)  investment values of land, facilities and equipment will decrease
          b)  on a per owner basis, land and facility investment values will decrease

[Reported investment values of land, facilities and equipment also increased from $14.7 million to $30.1 million, an increase of a 105% during this study]

4.  Racing-Related Revenue
          a)  purse revenue will decrease
          b)  the value of sales of horses

[Purse revenue had an increase in aggregate of 123%; the value of sale of horses also increased substantially to 239%.  Other racing-related revenue reported in the survey more than doubled from $1.24 million to $2.84 million.  Overall the aggregate value of racing-related revenue increased by 145%]

5.  Horse Purchases and Operating Expenses

          a)  a decrease in expanded business activity and operating expenses
          b)  a decline in horse purchases
          c)  employee compensation decreases

[From 1998-2002 an increase in annual horse purchases and operating expenses increased 137%, with the largest amount of expenditures going into horse purchases, employee compensation, training and boarding, vet supplies, and feed and hay for horses under the care of the operator]

6.  New Investment in Land, Facilities, and Equipment

          a)  the loss of incentive for horsemen to undertake long-term improvements/expansions

[Between 1998-2002, the survey showed that horse operators were now making substantial new investments in their business facilities, land, and equipment.  Annual investments for these items by the sample respondents increased 657%-$1.71 million in 1998 to $12.9 million in 2002.  This indicated that the presence of the slots revenue has provided substantial incentives for horse operators to undertake long-term improvements and expansions in their business]

7.  Share of Expenditures-Rural Areas and Small Communities

          a)  loss of money spent within the community
          b)  loss of municipal revenue

[The survey showed that slots revenue has had a very beneficial effect on rural and small communities where most of the horse operator's money is spent.  Respondents reported spending 73% of their expenditures in rural and small communities in 1998, increasing to 80% in 2002]

8.  Economic Size

          a)  Loss of value and size of horse operator businesses
          b)  Loss of size of the overall industry

[The operators responding to this question indicated that without slots revenue their businesses in 2002 would have been only 43.2% the size and 36.6% the value of their business in 1998 (at the start of the slots revenue), and that the overall industry would have been only 53.2% as large. The respondents also indicated that with continued slots revenue, their businesses in 5 years would likely be 89.7% the size and 101.4% the value of their 2002 business, compared to only 28.3% the size and 26.3% the value if the slots revenue were terminated today. Clearly, the presence of the slots revenue has had a substantial impact on the standardbred horse industry and is essential for its continued viability.]

The Overall Conclusion:
 
"Overall, the provision of slots revenue to standardbred horse operations has created many benefits for the horse industry, the overall agricultural sector, and the Ontario economy in general.  The horse industry in turn has been one of the few bright spots in the agricultural industry in recent years, as the overall agriculture sector has faced growing competition, low prices, and periodic problems with adverse weather and disease. Continued support through slots revenue for the horse component of the horse racing industry has the potential for maintaining the current viability of this industry for many years into the future."


"Stay safe, keep your hooves on the ground, and keep reaching for the wire!"

Wednesday, March 14, 2012

And They're Off...!!!

Wow!  That certainly didn't take long for the OLG to obliterate 3 casinos!  As of April 30, 2012, Windsor, Hiawatha, and Fort Erie will be the first three on the chopping block, and according to the OLG fourth quarter fiscal report (2010-2011), that's approximately 574 OLG employees total--and does NOT include the associated jobs affiliated with the horse racing aspect!  Seems that protection of Ceasars Windsor, Niagara Fallsview and Point Edward Casinos are the reasoning behind these three racetrack/casino closures?

You can read through the OLG Strategic Business Review

I've been pretty quiet lately about speaking up with regards to what the Ontario Liberal Government is doing to the horse racing industry -- well, no longer.  As I sit writing this blog, I keep glancing at the London Free Press' bold-lettered headlines --  "McGuinty's Big Gamble".  As of March 13, 2013, the province will pull the plug on slot revenue for the horse-racing industry, which will, in turn, annihilate the sector. 
But wait a minute...was this in the master plan when Finance Minister Dwight Duncan tapped Paul Godfrey--a well-connected businessman, newspaper publisher and former Metro Toronto chairman--to head a new OLG board on February 19, 2010.

In a nutshell, the Ontario Government will halt the annual payments of $345 million as of March 13, 2013, with the province arguing that the money is better spent on health and education, and of course, to reduce the overall deficit.  But wait a minute...back in June of 2011, the OLG paid out $2 billion in cash to the province after a year of record-breaking revenue.  The $2 billion payout -- the biggest since 2003 -- was drawn from the $6.7 billion in total revenue the OLG earned for the fiscal year ending March 31.  And yes, the OLG staff also got their share of the revenue boom; $11.6 million was spent topping off staff paychecks even though salaries were frozen under a governement "belt-tightening" drive.

Ironically, in early March of this year, Toronto mayor Tom Ford recently asked Paul Godfrey and the OLG to fund an overhaul on the underground transit expansion that would specifically include an extension to the Sheppard line, but was answered with a flat-out "No".  "If we did a special purpose lottery for Toronto, how long do you think the line is going to be of municipalities across Ontario that would ask for similar things for swimming pools or skating rinks", Godfrey said.  But wait a minute...If the OLG plans to contruct a casino in the GTA within the next 5 to 7 years, would the public not need adequate and updated transit to access it?  Meaning that the OLG can eventually fund this project without a guilty conscience because A) They've freed up funds by pulling the plug on the horse-racing industry, and B)  They now have a legitimate reason for the upgrades, without getting backlash or asking for hand-outs from other municipalities.


Why An Isolated Casino in the GTA - In Fiscal Terms

In a quarterly performance report for OLG resort casinos (Third quarter of fiscal 2008 - 2009 [October - December]), Ceasars Windsor, Casino Rama, and Consolidated Niagara reported a third quarter gaming revenue of $349.1 million, with a year to date revenue of $1,093.9 million.  These establishments below are NOT directly associated with a horse track venue, which could be why the OLG is looking to the greater Toronto area for their casino and NOT at Woodbine or Mowhawk -- Simply put, it attracts more money to be put in the downtown core AND offer a resort-like setting--WITHOUT the smell of horse sh#t around you!




Note:  The Ontario Government receives 20% of gross gaming revenue from resort casinos and 100% of profits from Ceasars Windsor, Casino Niagara, and Niagara Fallsview.  Net revenue from Casino Rama are distributed to Ontario's First Nations.  As compensation for hosting a resort casino, the hosts cities of Windsor and Niagara Falls, each receive $2.6 million annualy for ten years, following $3 million annualy for the next ten years (commencing May 1, 2008 at Windsor)

But wait a minute...A fourth quarter fiscal report from the OLG for 2010-2011 (January to March) states that the OLG Slots at Racetracks produced a fourth quarter revenue of $411.7 million, with a year to date of $1,734.5 million.  Of that year to date revenue, $161.7 million went to horse people, $175.8 million went to the racetrack, $60.1 million to the municipalities, and $185.3 million to OLG employees.  A total of 18,267,943 patrons attended the racetrack/casino establishments during this fiscal year, while 14,625,998 patrons visited the larger, non-racetrack resorts (Ceasars Windsor, Casino Rama, and Consolidated Niagara) in 2008.  Are we saying that the racetrack/casino establishments can't carry themselves economically?  On top of the loss of the $345 million to the racing industry, we're cutting the $60.1 million distributed to the 18 participating municipalities -- an average of $3.3 million dollars cut from each municipal budget.

In a 2010-2011 public account document, the OLG committed to the establishment of an additional Slots at Racetrack operation at an estimated cost of $18,954,000;  An amendment that would take them to the year 2016; quoted below:

g. OLG Casinos and Slots

The Corporation is committed to the establishment of an additional Slots at Racetrack operation at an estimated cost of $18,954,000.  In connection with the terms of an amending agreement and assignment, consent and acknowledgement agreement between the Corporation and a Slots at Racetrack site holder, the Corporation agreed to provide the site holder with payments which commenced December 31, 2009 in the amount of $5,600,000 per annum for three years in lieu of a predetermined percentage of revenue from slots.

In connection with the terms of an amending agreement and an assignment, consent and acknowledgement agreement between the Corporation and a Slots at Racetrack site holder, the Corporation agreed to amend the horse racing industry payment during the five-year period commencing January 1, 2011 to a predetermined amount of $8,000,000 per annum in lieu of a predetermined percentage of revenue from slots.

Would this not commit the OLG to at least 2016?


Further Notes:

Clinton, Dresden, and Hanover racetracks are the lowest revenue producers, have the lowest patron attendance, and provide jobs for approximately 276 OLG employees, NOT including the jobs of horsemen.  Look out people, you could be next!

Is it not time for action?  Why is it that the OLG/government refuses to do absolutely NOTHING in order to maintain a marriage with the horse racing industry?

On a personal note; I have a Stonebridge Regal foal due near the end of April 2012 and I shutter to think that I may very well have to train him to be a riding horse..The OLG and the Liberal government should split the cost of my $4000 stud fee!


Stay safe, keep your hooves on the ground, and keep reaching for the wire!