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
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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