When the government announced the end of the Slots-At-Racetracks program they noted it was part of the Ontario Lottery and Gaming Corporation’s Modernization Strategy. Part of that strategy includes the OLG’s Charitable Bingo and Gaming Revitalization Initiative which they note includes “new products and technologies – like electronic bingo and other games – to invigorate the traditional bingo experience, with the objective of generating more money for thousands of local charities.”
In an article published January 3, 2013 on the Standardbred Canada website (read here), it was revealed that these electronic bingo games look exactly like traditional slot machines. Further detailed in the article is that six new gaming centres featuring these “bingo” terminals are all located within 40 kilometres of existing gaming facilities – and many much, much closer.
The facilities are privately owned and operated, but the OLG has supplied the brand new machines, which look like slot machines, but are called “play-on-demand” machines. The OLG has stated that neither they nor the government will receive proceeds from the bingo halls, rather the revenue will we used to cover the costs of bingo modernization plan, referring to their share as “revenue neutral.” The OLG asserts that their role is to conduct and manage the project, and that it will cost them $475 million over the next eight years to do so, which is the same amount they boast that charities will receive over the same time period, with an average of $59.375 million per year.
They have noted the revenue split as follows: a centralized marketing fund of 7% will be set aside off the top; the bingo hall operator will get a blended 47% of the remaining net win; charities will receive 25%; the OLG will receive 25%, which is revenue neutral to cover costs; and the municipality will receive 3%. In addition, 10% of food and beverage sales will be provided to charities from the OLG’s 25% share.
The OLG throws these numbers around as if they are a guarantee. Looking at revenues for the past 10 years that existing casinos and bingo parlours have produced (on the Auditor General’s report), one can see very clearly that they both lose millions year after year while the Slots At Racetracks Program has produced incredible profits (1.2 billion to the government a year). So much so, that several States to the south of Ontario are copying our program and seeing great results. So why, we in the racing industry ask, is the Liberal government and the OLG (Paul Godfrey) so determined to destroy horse racing by ending the SARP? Could it be to clear the way for wealthy international casino owners to expand into Ontario? Or so Larry Tanenbaum, good friend of Godfrey with connections to the OLG and the government, suddenly thought to buy up a bunch of derelict bingo halls a few years back. And just as coincidentally, the OLG (Godfrey) is promoting the expansion of slot-like machines into bingo halls. This stinks of corruption and collusion in the worst way. If this is allowed to come to pass, look at the numbers of distribution. Tanenbaum and casino owners will get a whopping 47% of the net profit with only 3% (as compared to the exisiting 5%) to the municipalities. The other 2% will be have to now come from the taxpayers. The OLG gets 25% plus that 7% (off the top) for more of their advertising to get more people to spend more of their hard-earned dollars on gambling rather than investing in their families. The charity part—well we all know how much of our donated dollars actually goes to the cause and how much is eaten up in administration. But hey, it looks good to say that charities will benefit from this scheme. The SARP puts 20% into the racing industry which goes back into the economy through the purchase of supplies and services, 75% directly to the government to distribute as they see fit (education, health, infrastructure, etc.) and 5% to the municipalities. Generous donations are also made throughout the year to many charities from the industry itself.
If only the OLG would speak the truth rather than hiding the real story like the one Darryl Kaplan tells on Standardbred Canada. But that is not likely coming from the likes of Paul Godfrey and our Liberal leaders. Oh, and by the way, Mr. Godfrey doesn’t want a casino built in his backyard but it’s ok to build it where there are no residents in downtown Toronto! Take another look at the growing number of condos going up in downtown Toronto Mr. Godfrey. Just another mistruth from this money and power hungry man who thinks he controls our province.