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Originally Posted by movingtohamilton
I'm not convinced that the addition of internet gaming is a significant strategic shift. I'm sure OLG will continue its efforts for b&m casino developments. Internet gaming will be another revenue stream.
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Online gaming was part of the picture well before the OLG Modernization Plan was rolled out in March 2012 — months, in fact, before the OLG was even directed to undertake the strategic business review that led to the plan. It was announced as a priority by the province over four years ago and was expected to have been live two years ago:
Ontario’s OLG rolling out online gaming in 2012
(National Post, Natalie Alcoba, Aug 10, 2010)
Eager for a “reliable source of revenue,” the Ontario government is introducing legalized Internet gaming.
Expected to launch in 2012, the provincially run gaming site could ultimately offer everything from lottery ticket sales to interactive, casino-style games and poker online.
“Globally, Internet gaming has become a prominent trend,” said Finance Minister Dwight Duncan on Tuesday.
The Ontario Lottery and Gaming Corporation will undertake an 18-month consultation and implementation process.
“It is an inevitable step in the ongoing transformation of the OLG,” Paul Godfrey, chairman of the OLG, told a news conference at Queen’s Park. “We will move forward, and we will do it with great care.”
Mr. Duncan said Ontario gamblers already spend about $400-million per year on unregulated Internet gaming providers that make up a “grey market” and are mostly located offshore.
Currently, no private provider is authorized to operate in Ontario. “This means money is flowing out of Ontario,” Mr. Duncan said. He said the province asked OLG to develop a “socially responsible and secure” gaming site that includes safeguards and “encourages responsible gaming.”
Officials estimate that in the fifth year of operation, the site could start to bring in $100-million annually. “This is about competitiveness in the industry,” Mr. Duncan said. “The initial figures are relatively modest.… It’s more about competitiveness of OLG going forward and ensuring that it continues to be a reliable source of revenue for the province.”