Speculation High on Ontario Lottery Privatization
Liberal Premier Dalton McGuinty is seriously mulling the possibility of privatizing the Ontario Lottery and Gaming Corporation, it has been learned.
The Toronto Star reported that the Liberal government was on the brink of signing a deal with two banks (to the tune of $200,000) to undertake "preliminary research" into the sale of the Ontario Lottery.
The government is reportedly not pleased with lottery's whopping deficits of $24.7 billion and is seeking solutions to alleviate the province's growing debts as a result.
The Star quoted an insider as saying: "Don't underestimate the frustration of the name in the corner office."
"There has been a great deal of talk about privatizing the lottery corporation and certain gaming operations for some time," a second source was quoted. "There has been support at senior levels for doing so."
The government sees the model created 10 to 15 years ago as outdated and wants to shake the lottery's image to encourage more revenue.
"If all we went is a revenue stream from gambling proceeds, then why can't we let someone else run it," asked one politician.
In the meantime, the government has appointed Paul Goldfrey, President and CEO of the National Post, to breath some air into the Ontario Lottery and Gaming Corporation.
"He's a deal maker, he knows his way around deals," said the source.
The Corporation owns $2.4 billion worth of property, including casinos in Niagra Falls, Windsor and Rama, racetrack slots and lottery operations.
