Challenges Ahead for Woodbine Entertainment Group
Woodbine Entertainment Group, the largest horse racing operation in Ontario, Canada, is keen to expand its gambling options in cooperation with the province's authorities.
Chief Executive Officer of Woodbine Entertainment Group, Nick Eaves, has spoken of the many challenges facing the company, including a drop in the number of spectators who attend live racing events.
In addition, while Woodbine used to offer an average of 165 racing days each year, this season it was forced to cut that number back to 133. As a result, at least one hundred full time workers were let go, and more job cuts may be on the way if things don't improve.
In order to diversify its revenues, Woodbine Entertainment has incorporated several new locations, introduced off-track betting options and expanded its gaming presence by installing slot machines at the tracks.
Woodbine Slots Exclusivity Ends
Unfortunately, Woodbine horse racing group took a major blow at the end of March when its contract with Ontario Lottery and Gaming ended. Up until then Woodbine had been the lottery corporation's officially recognized partner with exclusive rights to offer slot machines and other gambling devices.
As a result, Woodbine has been cut off from one of its main revenue sources, and the impact will be felt almost immediately.
The OLG, in line with its modernization plans, is seeking new ways to increase gambling revenue, and has invited bids from potential partners to find a new framework for gambling in Ontario.
The CEO of Woodbine wants to continue working with OLG so that its revenues are not affected, but at the same time support its primary objective - the province's racing industry.
"Our focus is to make sure we find a new partnership with the government that allows us to help them meet their revenue objectives but still find a way for a sustainable horse racing industry," said Eaves.
Woodbine Wants to Host Toronto Casino
One of the hottest issues in the OLG's modernization process is a proposal to construct a new mega casino in Toronto. Woodbine Entertainment Group believes that instead of creating an entirely new casino in downtown Toronto, the government should invest in expanding gaming operations at the track.
"Our view," said Eaves, "is that the most logical way to meet the provincial revenue objective is to allow Woodbine to operate expanded gaming operations at Woodbine."
"There's a proven track record of success," said the CEO. "By OLG's own admission, it's the most successful gaming floor anywhere in North America."
