Vancouver-based gaming company Gateway Casinos & Entertainment Ltd has struck a deal with Ontario Lottery and Gaming Corp (OLG) to acquire the assets of OLG’s Central Gaming Bundle. Terms weren’t disclosed.
As a result, Gateway entered into leases for Casino Rama Resort on Chippewas of Rama First Nation lands and OLG Slots at Georgian Downs in Innisfil.
Gateway, which was awarded bundles in Northern Ontario and Southwestern Ontario last year, now operates 11 gaming properties in the province. The deal increases its properties in Canada to 27.
Gateway has been owned since 2010 by Canadian private equity firm Catalyst Capital Group.
Gateway Casinos & Entertainment Continues Ontario Expansion with the Addition of Casino Rama Resort and OLG Slots at Georgian Downs to the Gateway Portfolio
Another Growth Milestone Sees Gateway Grow to 27 Properties in Canada
BURNABY, BC, July 18, 2018 /CNW/ – Gateway Casinos & Entertainment Limited (“Gateway”) has signed a 23-year Casino Operating and Services Agreement (COSA) with the Ontario Lottery and Gaming Corporation (“OLG”). Gateway has purchased the assets of the Central Gaming Bundle and entered into leases for Casino Rama Resort on Chippewas of Rama First Nation’s Lands and OLG Slots at Georgian Downs in Innisfil. Gateway will take over the day-to-day operations of these sites effective today. The expansion into central Ontario represents the next exciting chapter in Gateway’s successful growth strategy and also allows for the construction of a planned new casino in the Wasaga Beach/Collingwood area.
“I am very proud to invite our colleagues at Casino Rama Resort and OLG Slots at Georgian Downs to officially join the Gateway team today. We thank the OLG for their support and hard work throughout the transition process and we look forward to continuing our long-term partnership with them,” said Tony Santo, Gateway’s Chief Executive Officer.
Through Gateway’s growth strategy that is focused on dramatically improving customer experiences, Gateway has already begun redeveloping and investing in new properties across Ontario. In Point Edward, $26 Million is being invested to transform the property into Starlight Casino Point Edward featuring the Buffet and Ontario’s first Match Eatery & Public House, which opened for business to a full house on July 5th with a ribbon-cutting that also offered the opportunity to meet retired NHL stars Dino Ciccarelli and Wendel Clark. Last week Gateway broke ground on its new $36 Million Cascades Casino in Chatham which will create up to 200 new jobs and will feature the Buffet and Match Eatery & Public House as well.
“Gateway is reinvesting in local communities and creating thousands of new jobs by introducing our signature gaming and restaurant brands throughout Western Canada and Ontario. The acquisition of the Central Gaming Bundle is the next milestone in Gateway’s growth strategy and significantly enhances our customer offerings in Ontario with the addition of a casino resort property that can be leveraged throughout our Ontario portfolio,” Gabriel de Alba, Gateway’s Chairman.
Casino Rama Resort and OLG Slots at Georgian Downs fit well into the Gateway portfolio and will contribute to the Company’s successful growth strategy enhancing the properties and offering customers a wide range of entertainment, dining and gaming experiences. With strong brand equity and awareness in the Ontario market, Casino Rama Resort is a large-scale resort property featuring a 5000-seat entertainment centre, a 289-room hotel, 8 restaurant and dining options, VIP gaming and a large, dynamic gaming floor. Through Gateway’s loyalty program, My Club Rewards, Gateway customers across Ontario will have the opportunity to also enjoy the amenities of Casino Rama Resort. OLG Slots at Georgian Downs is a similarly well-known and popular venue featuring the latest slots and casual dining.
Gateway was previously awarded the Southwest and Northern Gaming Bundles in May 2017. In Ontario, Gateway will now operate 11 properties with 4150 employees. Through the awarding of the Bundles in Ontario, Gateway will also undertake three planned new builds in North Bay and Kenora in the North Gaming Bundle and Wasaga Beach/Collingwood area in the Central Bundle.
A commitment to responsible gambling is integral to how Gateway operates. All Gateway properties in British Columbia and Ontario hold RG Check accreditation. Together with OLG and other government partners, Gateway will continue to implement responsible gambling initiatives at all properties across Canada.
About Gateway Casinos & Entertainment
Gateway Casinos & Entertainment Limited (“Gateway”) is one of the largest and most diversified gaming companies in Canada. Operating in British Columbia, Edmonton and Ontario, Gateway has 9,000 employees and operates 27 gaming properties with more than 380 tables, over 13,200 slots, 77 restaurants and bars and 561 hotel rooms. As the new service provider for the Central Gaming Bundle in Ontario, Gateway has brought two more properties and one new planned build in Wasaga Beach or Collingwood to the Gateway portfolio when fully implemented. A multi-pronged growth strategy has seen Gateway diversify and expand its product offering, including developing proprietary casino and restaurant brands, which has dramatically improved the gaming customer experience while attracting new customers. This includes brands like Match Eatery & Public House, Atlas Steak + Fish and the new Halley’s Club. In 2017, Gateway celebrated 25 years in the business of gaming and entertainment in Canada. Further information is available at www.gatewaycasinos.com.
About The Catalyst Capital Group
The Catalyst Capital Group Inc. (“Catalyst”), a private equity investment firm with more than $6 billion in assets under management founded in 2002, is a leader in operationally focused turnaround investing. The firm’s mandate is to manufacture risk adjusted returns, in keeping with its philosophy of “we buy what we can build.” Catalyst’s Guiding Principles of investment excellence through operational involvement, superior analytics, attention to detail, intellectual curiosity, team and reputation are key to the firm’s success. The Catalyst team collectively possesses more than 110 years of extensive experience in restructuring, credit markets and merchant and investment banking in Canada, the United States, Latin America and Europe.
For further information: Gateway Casinos & Entertainment: Robert Mitchell, Director, Communications & Public Affairs, +220.127.116.1148, [email protected]; Catalyst Capital Group: Dan Gagnier, +1.646.569.5897, Gagnier Communications, [email protected]