THUNDER BAY -- A British Columbia-based company is betting that gambling has a long-term future in Northern Ontario.
The province has sold the OLG Casino Thunder Bay's property and management to Gateway Casinos and Entertainment, which is making a 20-year commitment to operate the facility.
Gateway was the successful bidder in two separate procurement processes encompassing Northern and Southwestern Ontario regions. The company's northern holdings will include existing facilities in Thunder Bay, Sault Ste. Marie and Sudbury. It has also been licensed to build private casinos in North Bay and the Kenora area.
The arrangement whereby the province commits quarterly payments toe the city of around $600,000 will continue under the casino's private ownership.
Ontario Lottery and Gaming corporation spokesman Tony Bitoni said the province will reduce its efforts to a regulatory role once the ownership agreement takes effect in the spring of 2017.
"Our official title will be to conduct and manage," he said.
"We'll make sure adhering to the strict policies we have in place and we've been carrying out for the last 10 to 15 years in some locations, that they uphold those standards, whether its for financial reporting, responsible gambling, whatever we're doing right now, they'll have to keep doing as well."
At the end of the 120-day transition period that began on Tuesday, Gateway will begin a one-year period in which it will be required to maintain all existing labour arrangements and agreements.
Bitoni added the agreement ensures the company can't move employees from one city to another until 2018 but added those types of changes are happening elsewhere in the province at the request of workers despite those stipulations.
"For example, in the east where we announced our service provider last November called Great Canadian Gaming, also from British Columbia, they have to build a new facility in Belleville. That's almost ready to open and we've seen a lot of people wanting to go from the slots at Kawartha Downs over to Belleville or from Casino Thousand Islands to take maybe a management position in Belleville," he said.
"So there has been a lot of movement in that bundle even though it hasn't been a year yet but it has been at the request of employees looking for new opportunities. I would expect to see the same thing here as those facilities are built."
United Steelworkers Local 1-2010 representative Jason Lacko said new ownership will not impact the three-year contract union members ratified on Friday. That agreement covers 189 workers on the casino floor as well as seven clerical members. Security staff is not included.
Calls to Gateway Casinos and Entertainment were not immediately returned.
