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Tuesday, July 31, 2012

Community Slots At Racetracks (CSAR) - 2nd Draft Proposal


As the OLG and the Ontario Government are attempting to shut down the very popular and immensely successful Slots At Racing program with little understanding of the fiscal and social consequences of a such an act, I am hereby proposing that we decide in coming weeks to do one of two things:

A) Agree to a two-year extension of the existing Slots At Racing partnership. This will allow time for cooler heads to prevail, and provide ample opportunities for the racing industry, the local municipalities and the provincial government to come to mutually acceptable terms on a new deal.

OR

B) Replace the existing structure with a 10-year agreement designed to shift more of the slots dollars generated into the provincial treasury and into local municipal budgets.


Let's take a step back and realize that SAR is an extremely successful PARTNERSHIP (rivaled only by the LCBO as a major contributor to Ontario's treasury) and though the Ontario Government have been very poor partners in 2012 (because they listened to a PR firm rather than common sense), the joint venture itself has been highly beneficial to both sides and has the potential to continue doing so for decades to come.

Our goal is to have the following 6 partners endorse this proposal and collectively present it to OMAFRA for consideration by OLG and the Ontario Government:

Woodbine Entertainment Group

Great Canadian Gaming Corp

Ontario Harness Horsemen Association

Canadian Thoroughbred Horse Society (Ontario)

Association of Municipalities of Ontario

Tourism Industry Association of Ontario


It would obviously be ideal to have OHRIA on board from the beginning, however our goal is to first find an agreement suitable to the above 6 partners, and then have it approved by the OHRIA before submitting to OMAFRA and releasing to the public.

Existing arrangement:

2012 – 75% Province / 20% Track and Horsepeople / 5% Local Municipality

2013-2014 extension: If a new agreement cannot be entered into before the end of 2012, we are proposing a 2-year extension to the existing agreement, as a way of protecting Ontario taxpayers from a drastically increased deficit, as OLG and the Government of Ontario appear determined to wipe out racing and slots in this province without any concrete plan to replace the revenue currently flowing into the provincial treasury. If there are going to be big changes that negatively affect people's lives, the two year extension to allow for a transition is a way of ensuring fair and humane treatment for the Ontario horse racing industry, including both human and equine participants.

This extension will ensure that if a new tri-partite (OLG, municipalities, horsepeople) agreement cannot be worked out before the end of 2012, government and industry revenues will stay in place and Ontario will continue to receive over $1 billion annually from the horse racing industry.

OR


Even though a two-year extension would be a much-valued reprieve for both the industry and the OLG, ideally all parties can come to the table with positive energy and fresh ideas to strike an agreement bolstering provincial and municipal treasuries.

Proposed new 10 Year Agreement 2013-2022 (contingent upon re-opening slots at Fort Erie, Windsor and Sarnia, plus future two years notice of any planned closures, including consultations, plus inclusion in discussions regarding launch of sports book in Ontario):

Proposed 2013:

All Ontario tracks:

77 / 17 / 6


2014:

77 / 16 / 7


2015:

Most tracks:

78 / 15 / 7

BIG 6: Woodbine / Mohawk / Georgian Downs / Western Fair / Flamboro / Rideau Carleton
77 / 16 / 7 (2015-22)


2016:

Most tracks:

78 / 14 / 8


Woodbine / Mohawk / Georgian Downs / Western Fair / Flamboro / Rideau Carleton
77 / 16 / 7


2017:

Most tracks:

79 / 13 / 8


Woodbine / Mohawk / Georgian Downs / Western Fair / Flamboro / Rideau Carleton

77 / 16 / 7


2018-2022

Most tracks:

80 / 12 / 8



Woodbine / Mohawk / Georgian Downs / Western Fair / Flamboro / Rideau Carleton

77 / 16 / 7


The reason the Big 6 are proposed to operate under a different arrangement is twofold:

A) As they are more urban tracks, they have higher operating costs and purse requirements.

B) As they are located closer to larger urban centres, the slots revenue comprises a smaller percentage of local municipal budgets. The portion for local municipalities rises from 5% to 7% for the Big 6, whereas it rises from 5% to 8% for the 11 tracks in smaller markets.

The OLG is out of control and they are attempting to sacrifice rural and smalltown Ontario to cover up their massive casino mismanagement. Their plan involves shutting down efficient, lucrative, made-in-Ontario solutions to bolster their money-losing and unwanted foreign-owned casinos and bingo hall dreams. It is a preventable train wreck that can be avoided if clear-thinking taxpayers in Ontario revolt and put a stop to the OLG's muddled thinking and misguided proposals.

Please respond with any endorsements or detailed suggestions for improving the viability of this proposal, thanks kindly.


Joe Trainor, Publisher
Horses and Hockey Blog



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