Tuesday, April 3, 2012

OLG Review Recommends Modernization & Privatization

By Michael D. Lipton, Q.C., Kevin J. Weber, and Jack I. Tadman

The Ontario Lottery and Gaming Corporation (OLG) recently released a Strategic Business Review (the "Review") which set out wide-ranging plans aimed at modernizing commercial and charitable gaming in Ontario.

The Review made three broad recommendations, the details of which entail a substantial alteration of the present nature and scope of OLG operations: (1) become more customer-focused, (2) expand regulated private sector delivery of lottery and gaming, and (3) renew OLG's role in oversight of lottery and gaming.

The goal of the Review was to suggest recommendations that would modernize lottery and gaming in Ontario. Thus, the OLG is aiming to increase gaming participation by "younger" adults, and in this connection, it is recommending that the OLG increase the accessibility of all forms of gaming to places frequented by such younger adults.

In keeping with the "modernization" theme, the Review notes recent Ontario-based private-public partnerships in areas such as health care that have, to positive effect, shifted the risks associated with public capital investment to the private sector. The Review proposes that by entering into these types of private-public partnerships in the gaming sector, the OLG will also benefit from the knowledge and experience of working with top-tier gaming providers, while being able to focus its efforts on well-defined control and oversight functions.

To learn more about the OLG recommendations and analysis, check out the latest edition of Gaming Legal News.