Caesars eyeing Toronto Convention Centre as US gambling

“That’s our preference because of the way the resort would integrate with the rest of downtown and the other local businesses,” said Ms. Jones, who was in Toronto this week meeting city councillors and crossed paths with Alan Feldman, senior vice president of public affairs for MGM Resorts.

Executives at both gambling conglomerates say that blackjack tables and slot machines would represent no more than 10% of the “integrated resort” they have in mind, with the bulk of the real estate dedicated to hotel rooms, convention space, entertainment venues, shopping and dining destinations. “We’re not trying to hide the casino,” said Feldman in an interview in Toronto last Wednesday. “But they really aren’t the only thing that we’ve got going.”

There is plenty of other interest from Woodbine Entertainment, Onex Corp and the Las Vegas Sands, but where, or even if, a casino will ever get built in Toronto is far from a sure thing.

The Ontario Lottery and Gaming Corporation in March announced plans to build a new casino in Greater Toronto but says it will not put one in a city that does not want one. Paul Godfrey, chairman of the OLG and president and CEO of Postmedia Network, the National Post parent company, said last week that downtown Toronto is OLG’s first choice. A public forum on the idea will be held at city hall next month and a report is expected in November outlining the pros and cons of the venture.

Feldman said MGM could spend us$ 3- to us$ 4-billion on a 20 to 25 acre complex at the sprawling 200-acre Exhibition Place, generating about 5,000 construction jobs and 8,000 permanent positions.

It could also include a permanent Cirque du Soleil outpost, said Feldman, who suggested developing Exhibition Place and Ontario Place at the same time and expressed interest in the putting some of the non-gaming entertainment venues at Ontario Place. Caesars, by comparison, is interested in an “iconic structure” on the smaller convention centre footprint that would cost more than us$ 1-billion to redevelop, and is projected to bring in 1,500 construction jobs and 3,000 fixed jobs for the casino portion alone, said Ms. Jones.

Oxford Properties, which owns part of the convention centre and has reportedly been looking at the possibility of a casino entertainment complex, did not return a call for comment.

The mayor has expressed support for anything that is a “fair deal for taxpayers,” but city council appears divided on the matter. “There will not be a casino built in Toronto, Torontonians will overwhelmingly reject it,” said Councillor Gord Perks. “No amount of dressing it up and trying to put lipstick on a pig will sell it to Torontonians.” Councillor Adam Vaughan, in whose ward the convention centre sits, has assailed putting a casino there, saying it would damage the nearby cultural, tech and financial sectors.

Others are looking for more information. “What it is and how much we’re potentially taking in are to me the big determinants and those questions haven’t been answered yet,” said Councillor Josh Colle, who was among eight city councillors who met with MGM this week. “Is it going to be a box on the lake? I don’t think anyone likes that,” he said. Feldman, with MGM, says public opinion research it commissioned in Toronto suggests residents are more supportive of the concept of a casino in a larger entertainment leisure complex.

Exhibition Place is owned by the city, so picking it as a venue could net it more money, he pointed out. He thinks a casino resort could draw a million new tourists to Toronto- Caesars bets it’s even more - which produces other economic spin-offs.

Ms. Jones says cities are often concerned that a casino will “cannibalize” the existing business. She talked up Caesars’ “collaborative” approach that offers packages at other hotels, or complimentary dinners at local restaurants. “We’d probably more likely look for a local partner to help us program [our entertainment venue]. We don’t want to keep people from going to the shows and entertainment that exists,” she said. Both MGM and Caesars said they are still open to other locations in Toronto.