OLG SEEKS INPUT ON EXPANSION OF PRIVATE-SECTOR GAMING

May 17, 2012

TORONTO – The Ontario Lottery and Gaming Corporation (OLG) is today taking an important step forward in modernizing the province’s lottery and gaming industry by issuing a Request for Information (RFI) for the expansion of private-sector gaming.

The OLG is seeking input from potential providers as it expands regulated private-sector gaming in Ontario.

“Issuing the RFI is the next step in modernizing our business,” said Rod Phillips, OLG President and CEO. “This is the start of a process to engage private-sector companies which have the expertise of operating world-class gaming facilities.”

The process will:

• Help determine the range of options available in the market and assess potential vendor interest, as well as risks.

• Outline 29 potential Gaming Zones where regulated private-sector providers will be allowed to operate a single gaming facility, subject to approvals.

• After the RFI closes, OLG will begin to determine how it will engage regulated private-sector providers.

• Once the requirements are determined, OLG may issue a Request for Pre-Qualifications (RFPQ), which would ask vendors interested in the Request for Proposals (RFP) to submit evidence they are qualified and would be compliant with OLG and Alcohol and Gaming Commission of Ontario requirements.

• Following the RFPQ process, OLG may then begin the RFP process as early as fall 2012.

OLG is engaging an independent fairness monitor to ensure the overall procurement process is carried out fairly and transparently. “OLG is continuing conversations with municipalities across the province to gauge interest in participating in our modernization initiative and we will focus only on communities which are interested in having a facility,” said Mr. Phillips.

OLG has provided $833 million to host municipalities in the last decade. When the modernization initiative is finished in 2017-18, OLG expects that figure to have increased for each host municipality.

By modernizing lottery and gaming, OLG will in five years contribute an additional $1.3 billion a year to key public priorities and usher in $3 billion in private-sector capital investment in Ontario. In addition to 2,300 net new jobs in the lottery and gaming industry, the initiative would help create an estimated 4,000 jobs in the hospitality, hotel, restaurant, entertainment and retail industries.

While the new lottery and gaming model will include the expansion of regulated private-sector gaming, OLG will retain complete oversight of the sector, including responsible gaming.

OLG expects to issue a second RFI for the expansion of lotteries in the coming weeks. Both RFIs will be available on MERX (www.merx.com). MERX charges a fee to download this type of material.

OLG Background documents on OLG’s Modernization Procurement Process, OLG Gaming Zones and Gaming Zone Maps are also posted on www.OLG.ca.

OLG is a provincial agency responsible for province-wide lottery games and gaming facilities. Since 1975, OLG lotteries, Casinos, Slots, and Resort Casinos have generated more than $34 billion for the benefit of the Province of Ontario. Gaming proceeds support Ontario's hospitals, amateur sport, recreational and cultural activities, communities, provincial priority programs such as health care and education, and local and provincial charities and non-profit organizations through the Ontario Trillium Foundation.

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