Georgian Downs scores millions in compensation for slots debacle
Great Canadian Gaming, which owns Georgian Downs, will be paid $31.5-million from the OLG as compensation for being cut out of the slots revenue-sharing program last year. The payout, part of an $81 million total package being divided among several racetracks in the province, is in recognition of the expenses the tracks made to expand their buildings to accommodate more slot machines – Georgian grew to house over 1,000 a few years ago, and received a 10 per cent take of revenues from slots, as did the horse racing industry.
And while the slots at tracks program has not been reinstated, the OLG has entered into lease agreements with companies like Great Canadian to continue hosting the gaming machines.
Now that deal with Georgian has been confirmed, live racing is set to begin again next weekend, and its off-track teletheatre wagering is also re-opening after it was closed down for the past few months.
As well, Innisfil as host municipality, will receive a higher return from OLG. Under the new MCA formula, host municipalities will receive:
5.25 per cent on the first $65 million of slot revenue;
3.0 per cent on the next $135 million of slot revenue;
2.5 per cent on the next $300 million of slot revenue;
0.5 per cent on slot revenue above $500 million; and
the new element, 4 per cent on table game revenue.
The new formula will be applied to hosting fees retroactive to April 1, 2013. Payments to municipalities are treated as general revenue. To date, Innisfil has been paid more than $40 million.
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