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![]() Slots at RacetracksOn June 25, 1998 the Ontario Government and the Ontario Horse Racing Industry Association (OHRIA) entered into a Letter of Intent to allow for the introduction of slot machines at Ontario’s eighteen licensed racetracks. This agreement confirmed the industry’s intent to participate in the program with the objective of the racetrack slots to “promote live horse racing in the Province and subsequently benefit the agricultural sector in Ontario through increased purses, improved quality of horses and enhanced breeding.”The first racetrack slot operation was opened at Windsor Raceway in December 1998. Additional racetrack slot operations have been opening since then as the racetrack facilities are upgraded to accommodate the slot operations. In 2000, Capital expenditures by racetrack owners for track upgrades and construction of new slot machine facilities at racetracks was $319.2 million, creating more than 11,444 person years of employment. Fifteen of the province’s 18 licensed horse racetracks are currently participating in the Slots at Racetracks Program. The horse racing industry receives 20% of the total gross slot revenues - 10% to the horsepeople and 10% to the racetrack operator. Industry revenues are being invested back into horse breeding, ownership and racing. Host municipalities receive 5% of the gross slot revenues on the first 450 machines and 2% on machines over 450. More than $26.2 million was identified for distribution to the 11 host communities across the province participating in the initiative in 2000. The racetrack slot program provides secondary support for the industry. Slot machines are not intended to be the prime activity at racetracks – breeding and racing will remain the core business of the industry. Slot machine revenues will supplement racetrack revenue. Indications are clear that both direct and indirect jobs in the horse racing industry are being preserved and enhanced as a result of the slot machine initiative at racetracks. The pause in implementation of the slots at racetrack program as outlined in the Addendum to the Letter of Intent will allow the impacts of gaming in the province to be thoroughly assessed. After all current commitments on slots at racetracks are operational a cooling off period of one year will allow the market to settle. At that time, the results of a market assessment conducted by the Ontario Lottery and Gaming Corporation will be analyzed and the issue of additional slot machine facilities at the remaining non-participatory racetracks will be reviewed. Any action taken to include the last two tracks in the initiative will depend upon appropriate zoning in those communities in addition to the market assessment. This does not include the addition of table games at racetracks, which are subject to the government's three year pause. Racetrack slots are operated by the Ontario Lottery and Gaming Corporation. | |||||||||||||||||
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