A 22-year exclusive deal for the operation of several Grand Toronto area casinos in Canada has been made. The new deal will see Brookfield and Great Canadian acquire OLG slots at Ajax, Woodbine and the Great Blue Heron Casino.
The decision was made by the Ontario Lottery and Gaming Corp who presided over the 4,000 plus slot machines as well as an estimated 2,200 employees. This is all part of government’s agencies forward thinking plans to offer up several stagnating incomes to the private sector in order to encourage growth.
Great Canadian is already one of the area’s largest operators boasting an impressive 14 casinos and various other gaming ventures such as their 4 racetrack casinos.
The operators managed to battle off reportedly fierce competition from the likes of the Caesars Entertainment and other large North American companies who saw this deal as a sure shot profitable investment.
The deal is estimated to be worth $72m for each of its 22 years. This includes the allowance of 70% in gaming revenue.
Shares for both Great Canadian (14.4%) and Brookfield (3.4%) are up following the announcement. The two companies each now own 49% of the joint venture with Clairvest Group Inc acquiring the other 2%.