Racetrack Revenue Sharing to End Next Year

The Ontario government released a news brief today which stated that they are looking to restructure the Ontario Lottery and Gaming system, which includes a complete cut of revenue sharing for the horse racing industry.

This move is seen by many as a death sentence for rural horse racing tracks such as Dresden Raceway.

The Ontario release said the revenue sharing agreement that had been in place will be phased out within the next year, calling to,

“Stop annual payments to the horse racing industry by ending the Slots at Racetracks program on March 31, 2013, and allowing slot facilities to be located more strategically.”

Although the provincial government is estimating the OLG restructuring and “modernization” will create up to 6,300 jobs, the horse racing industry is bracing for severe losses due to the change. Some estimates place the potential job loss in the horse racing industry in the tens of thousands as a reported 60,000 people are employed by the industry across the province. Approximately 7,000 people are employed in the horse racing industry in Southwestern Ontario.

“We are focused, more than ever, on balancing the budget while continuing to provide the best education and health care in the world. Modernizing OLG’s operations and business model is an example of how we are ensuring our assets are delivering the greatest value to taxpayers,” said Ontario Minister of Finance Dwight Duncan in the release.

Since the Slots at Racetracks program was launched in 1998, the Ontario government has contributed roughly $3.7 billion to racetracks. The Dresden Slots located at Dresden Raceway have made nearly $6 million in contributions to the Municipality of Chatham-Kent in the last decade.