Great Canadian Gaming Corporation and Clairvest awarded licence to operate in West Greater Toronto

In an announcement on December 12th, Great Canadian Gaming Corporation and Clairvest Group Inc. confirmed having been awarded by the Ontario Lottery and Gaming Corporation (OLG) with permits to operate certain gaming facilities in the West Greater Toronto Area (the West GTA Bundle).

Through the newly-formed Ontario Gaming West GTA Limited Partnership, Great Canadian will own 55 per cent and Clairvest, 45 per cent of the bundle's assets. Additionally, Great Canadian will develop and operate the gaming facilities within the West GTA Bundle on behalf of the Partnership.

The West GTA Bundle is comprised of OLG Casino Brantford, OLG Slots at Mohawk Racetrack, OLG Slots at Flamboro Downs and OLG Slots at Grand River Raceway. These facilities have a combined total of over 2,500 slot machines, approximately 60 table games, employ more than 1,400 staff, and generated approximately $450 million in gross gaming revenue in fiscal 2017.

As a result of this award, the partnership will acquire all the gaming assets in the West GTA Bundle and will enter into leases for each of the facilities. It will have the exclusive right to operate these assets for a minimum period of 20 years, in accordance with the requirements of a Casino Operating and Services Agreement. The closing will be completed under the terms of a Transition and Asset Purchase Agreement entered into with OLG.

With years of gaming, racing, hospitality, and development expertise, the partnership will provide strategic vision and operational modernization that will add extensive non-gaming amenities and expanded gaming offerings to ensure properties in the West GTA Bundle deliver a premier gaming and entertainment experience, creating up to 1650 new jobs in gaming, entertainment, and hospitality, while also ensuring each property appeals to a wide spectrum of the marketplace.

The partnership envisions dramatic enhancements and additions at Mohawk, Flamboro Downs, and Grand River that will create a seamless and integrated experience for the guest for racing, gaming and hospitality, while undertaking a significant top-to-bottom renovation of the Brantford facility.

With years of experience in horse racing in Ontario and other jurisdictions, the partnership looks forward to collaborating with racing industry stakeholders to work toward the ongoing sustainability of horse racing in the West GTA marketplace. The partnership also recognizes the significance of these properties in their local communities, and appreciates the importance of engaging early with local community leaders, stakeholder groups, and First Nations.

"Being awarded the West GTA Bundle is a true milestone for Great Canadian and the Partnership. We thank OLG for their confidence in our company and for providing us the opportunity to showcase and apply our gaming, racing, hospitality and development expertise to the selected properties," said Rod N. Baker, Great Canadian's President and CEO. "As a Canadian company that has a long history of responsibly and successfully operating gaming and racing facilities across Canada, we are excited to undertake what we feel will be a dramatic transformation of the entertainment experience at these four properties, for the teams that work there, and the communities they reside in."

"We are thrilled that OLG has selected the partnership as the service provider for the West GTA Bundle. Together with Great Canadian, we are confident in our ability to deliver a unique and spectacular gaming and entertainment experience at the four properties within the bundle," said Jeff Parr, Co-Chief Executive Officer and Managing Director of Clairvest Group Inc.

The closing date for the acquisition of the assets and assumption of certain liabilities from OLG, including the signing of a Casino Operating and Services Agreement with OLG, is expected to be in spring 2018, allowing for a seamless operational transition. Closing is subject to regulatory approvals and other customary conditions.