OLG privatisation criticised in Canada

Concerns have been raised after the OLG confirmed that private operators are set to gain more control in Ontario with an upcoming privatisation.

Canada.- The New Democratic Party (NDP) questioned the decision to privatise part of the Ontario Lottery and Gaming (OLG), as it believes that Ontario would lose millions in revenue. John Vanthof, NDP’s Finance critic, urged Financial Accountability Officer Stephen LeClair to determine how much money would be lost.

“OLG is the largest non-tax revenue source in the province at about US$2 billion each year. Kathleen Wynne’s OLG privatisation scheme gives away a minimum guaranteed US$72 million annually, plus as much as 70 percent of all gambling revenue,” said Vanthof, and added that a lot of money is going into the bank accounts of private corporations instead of going to the province, as The Sudbury Star reported. “Less provincial revenue could mean less funding for the services Ontario families count on, like hospitals and our kids’ classrooms. We’ve seen enough cutting and squeezing under the Wynne government – these things really are at a breaking point, and they can’t take any more cuts.”

OLG announced earlier this week that the new operator would have control over the slots machines and casino operations in the greater Toronto area for the next 22 years. It is rumored that Caesars Entertainment, Genting Group and local Brookfield Asset Management are three of the bidders to gain some control from the OLG. The OLG estimates that the company that wins the race will earn approximately US$72 million annually for the next 22 years, as well as 70 percent of the gambling revenue.

Nevertheless, Vanthof said that the privatisation presents a risk for Ontario: “People and communities deserve to know just how deep the risks run with this privatisation plan. Given the choice between those profits going into a private corporation’s bank account, or into our hospitals, schools and communities, I know which side I’m on.”