In October, the Ontario Lottery and Gaming Corporation (OLG) cancelled the current Request for Proposals (RFP) for Lottery in favor of a revised modernization approach. Through the Lottery modernization, OLG has been seeking a way, in partnership with the private sector, to unlock the opportunity to create greater value for Ontario.
After a period of due diligence and consultation with globally-experienced proponents, OLG has determined that the selection of a single service provider would not provide sufficient value for the Province of Ontario.
“Today, OLG’s Lottery business performs well; 2015-16 sales were a record $3.8 billion,” said Stephen Rigby, OLG’s President and Chief Executive Officer. “However, in order to unlock the full potential of the business, our approach to Lottery modernization is evolving. Under a revised approach, we will seek to enhance our capabilities in technology and innovation through partnerships with the private sector. This approach will leverage our skilled Lottery operations, headquartered in Sault Ste. Marie.”
The investments in research, due diligence and market capacity that OLG has made to date will inform OLG’s approach going forward.
“OLG’s mandate is to continually improve the business,” said Rigby. “Our research reveals there is untapped revenue potential in the market. We are now adjusting our approach and remain committed to providing increased revenue to the Province.”
In the meantime, it is business as usual. OLG will continue to operate the Lottery business. Customers and retailers will see no disruption in service and the modernization of land-based gaming continues.
At more than C$2.2 billion annually, OLG provides the Ontario government with its largest source of non-tax revenue. Modernization helps OLG provide more money to Ontario for key government services.
In terms of OLG’s time line, the lottery announced that the modernization of the lottery and gaming businesses would begin in March 2012. The Lottery Request for Information was issued in June 2012, and closed in August of that year.
In December 2012, OLG issued the Lottery Request for Pre-Qualification (RFPQ).
OLG issued the Lottery Request for Proposals (RFP) in September 2014, noting that the RFP would enable OLG to select one service provider to run specific day-to-day operations of the Lottery business in Ontario. Since then, OLG has conducted three sets of Commercially Confidential Meetings with pre-qualified proponents.
After a period of due diligence and consultation with globally-experienced proponents, OLG has determined that the selection of a single service provider would not provide increased value for the Province. In October 2016, the lottery cancelled the current procurement.