On December 9th, Cavan Monaghan Chief Administrative Officer Yvette Hurley received a letter from Senior Vice President of Corporate Affairs at Ontario Lottery and Gaming Corporation (OLG) advising that the organization was working on a contract extension that would see the Shorelines Slots at Kawartha Downs continue operations beyond the March 2026 contract expiration.
The letter explained that OLG was engaged in discussions with the service provider, Great Canadian Entertainment, who is expected to continue to operate the casino, and with the landlord, Kawartha Downs to establish a new lease and operating agreement. The letter also confirmed that Cavan Monaghan will continue to receive payments under the Municipality Contribution Agreement as long as the casino remains operational.
The initial agreement was established under the Optional Slots at Racetracks Program (OSARP), and was implemented in 2019 to help tracks affected by the termination of the original Slots at Racetracks Program. OSARP was originally set to end on March 31, 2026, along with the contracts between the OLG and gaming operators and lease agreements between those companies and the tracks.
As previously reported, ending the slots would have resulted in direct job losses for roughly 50 staff at Kawartha Downs, and potentially jeopardized the horse race operations which have been pushing for authorization to host more races to keep that part of the business viable. The discontinuation of the program, announced by the OLG in the fall would have eliminated 50 jobs at the Kawartha Downs casino and had a spillover effect in the community.
Kawartha Downs was not the only casino to receive good news last month. The Gateway Casino Sarnia at Hiawatha Horse Park also learned that their casino contract would be extended.
Many people lobbied for these contract extensions, including labour unions representing staff at the two venues, local MPPs, municipal representatives and members of the horse racing industry. While the details of these new agreements are still being worked out, but Kawartha Downs President Richard Weldon has indicated he expects that the extension will be for another five years.
This is not just good news for the casino workers and the local economy, but also for the host municipalities. Current levels of annual gaming revenue for Cavan Monaghan is roughly $300,000 and Sarnia collects approximately $400,000 each year from its local casino operations.
As for what triggered the change of heart, the OLG letter provides a clue. They are working with industry partners to support Ontario’s horse racing industry.
KG