Ontario sets up panel to work with horse racing industry
Ontario is moving forward with consultations to help the horse racing industry transition from the Slots at Racetracks program to a more sustainable, self-sufficient model.
The consultations will be led by a panel of three former cabinet ministers — Elmer Buchanan, John Snobelen and John Wilkinson.
The panel will:
• Work with the industry to help develop a vision for the future.
• Provide recommendations to the government on how to allocate transition funding.
• Advise on the modernization of other industry revenue sources to assist the industry in becoming more self-sufficient.
“It is important for the horse racing industry to develop a new vision for its future,” stated Ted McMeekin Minister of Agriculture, Food and Rural Affairs. “I look forward to hearing the panel’s recommendations on how we can provide transitional support for the industry.”
“Our government understands that ending the Slots at Racetracks program and responding to market demands poses a challenge for everyone involved in the horse racing industry,” states Dwight Duncan, Minister of Finance. “That’s why we are committed to helping the industry move toward greater self-sufficiency without government support.”
A final report from the panel is expected in late summer 2012.
QUICK FACTS
• Ontario will provide up to $50 million over three years in transition support to the industry.
• Employment Ontario will help displaced workers in the industry find jobs and training.
• Since 1998, the Ontario Lottery and Gaming Corporation (OLG) has provided nearly $3.7 billion to horse racing in Ontario through the Slots at Racetracks program.
• The industry is expected to receive a payment of $340 million from the OLG this year.
• The Slots at Racetracks Program gives 20 per cent of gross slot revenue. That money is shared equally between the track operator and those involved with running horses at the respective tracks. The program will end on March 31, 2013.
Weird
June 7, 2012 at 4:13 pm
Another shining example of how governments at all levels do things in a backwards fashion. Anybody who knows even a little about visioning and project scoping knows that you execute this type of activity BEFORE you make the detailed plans. If “real world” businesses outside of government worked the way they do in government they would go belly up in no time flat.
Chris
June 8, 2012 at 4:10 am
The economics of this decision still make no sence. Initial estimates include a loss of 24000 jobs. Now at a savings of 340 million to the province that’s 15000 a job, initially a good business decision until one factors in that a portion of that amount goes to racetrack operators to house the machines. Now let’s say MGM or caesars is willing to do this for HALF of why other jurisdictions pay at 15 percent of the profits. Now we stop paying horse racing 340 million, and pay a foreign company that’s 24000 jobs for 85 million savings. That 3500 a job, much less than each would pay in income taxes to the province per year. Now in a booming economy one could make the argument that individuals would find other jobs and continue to contribute, however we live in a province short of around 500,000 jobs, increasing our debt to active higher unemployment rates is a measure that could only be brought to us by the makers of project orange and e health in conjunction with the mastermind of the sky dome fiasco.