Funding to stay afloat
Ontario Lottery and Gaming (OLG) is getting a CA$500m (US$357.6m) loan from the provincial government so it can maintain its operations amid the ongoing COVID-19 pandemic.
A state of emergency has been in place in the province for the last two months, meaning that casinos, racetracks, and slot machines have all been shut down. With OLG having a monopoly on the gambling scene in the province, it is in need of the cash.?
line of credit to temporarily support OLG’s operational costs and help meet its contractual obligations”
According to the office of Finance Minister Rod Phillips, the Ontario Financing Authority is giving OLG “a line of credit to temporarily support OLG’s operational costs and help meet its contractual obligations over the short-term.”
Getting back to business
The goal is to have the OLG casino operations back up and running as fast as possible. The revenues that come from the gambling monopoly help fund numerous public causes including local schools, education, and health care in Ontario.?
When the emergency measures come to an end, the government has confidence that OLG will soon be able to make loan repayments. There is no clear timeline for these operations to restart, but OLG will stay in contact with the relevant public health bodies for guidance on the issue.?
OLG trying to cope with the pandemic
In a March fiscal update, Phillips forecast that the pandemic and resulting gaming closures would hurt OLG. In 2019, it contributed CA$2.3bn (US$1.64bn) to the provincial government. Phillips estimates, however, that this figure could be as low as CA$809m (US$578.6m) for the 2020-2021 fiscal year.?
About 17,600 people are employed in the gambling sector in the province. Though many companies in the private sector have laid off workers during the pandemic, OLG has not done the same.?
Ontario Lottery and Gaming spokesman Tony Bitonti said that all use of the credit facility is going to be strictly monitored, with the board of directors needing to approve any access to the funds. The terms of repayment will be determined by the Ontario Financing Authority.?
Filling OLG’s top post
In the meantime, the OLG is searching for a new CEO and president. In March, just before the pandemic changed life in Canada, Stephen Rigby announced that he was leaving the company after five years manning the wheel.
Rigby will remain in charge until there is a new CEO in place. The aim was to make an appointment by the summer, but this deadline may be extended as a result of the pandemic.?