Article published on 10 September 2014

OLG to Outsource Daily Operations

OLG Expects Profits to Increase After Upgrade
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The Ontario Lottery and Gaming Corporation (OLG) is looking to modernize its operations. The decision has been made that the OLG will outsource daily operations. The corporation announced that those companies that already qualify can bid on the plans that have been set out regarding updating the OLG's technology and expanding sales of lottery tickets. The corporation is seeking a partner to carry out these changes, and it is expected that the cash-strapped province of Ontario is hoping for a large bidding war in order to boost income. The winning bidder will receive a slice of the profits from this hugely profitable enterprise.

OLG to Outsource Lottery Terminal Operations

While the Ontario Lottery and Gaming Corporation is looking to have a private company take over both upgrading the lottery terminals and also boosting sales of lottery tickets, it seems that a lot of the focus is expected to be on upgrading the actual terminals that are now often between 10 and 15 years old.

The OLG spokesperson, Tony Bitonti, said: "We're looking specifically for companies to take over the terminals - the network of the system. Some of our terminals are 10 years old, 15 years old."

Bitonti further posed the question: "We want to know: Are we in the best places? Are there any other places that we can be, like some big box stores."

Bitonti explained that the OLG is looking at multi-lane channels. He said that developments could include a debit-style machine that has a PIN pad on it rather than customers having to wait for a single cashier that has a lottery terminal. It is felt that even with outsourcing parts of the OLG's operations, the profitability would increase substantially because of the changes and upgrades, and not only would the new company on board make a profit, but there would be increased profits for the OLG and therefore increased income for the province of Ontario.

Speculation on Short-Listed Companies

There has been much speculation on which companies have responded to the OLG, and which companies are on the shortlist at this time. While Bitonti has explained that the shortlist will not be made public due to sensitivities in the commercial world. There has been much speculation that Bell Media and Rogers are likely to bid, however, when Rogers was contacted, the company made it clear that it does not comment on "rumours or speculation."

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