Comment 85842

By mrjanitor (registered) | Posted February 04, 2013 at 22:33:12

OLG has the sole power to grant the 20 year licence to the private operator with the winning bid. The Mercantis are wasting everyones time presenting to council, it's completely irrelevant to the bidding process.

OLG is only asking for one number from the qualified operators they will be accepting bids from. What is your threshold limit value? That's it. OLG will pay the operator 70% of all gaming revenues only after the threshold limit value has been exceeded. If you bid $50 million than OLG keeps all the money up to $50 million, after that you get 70% of everything.

It's not as bad a deal as it sounds, OLG also pays the operator an indexed yearly fee for the term of the lease. The Ottawa fee is $30 million. We will have 60% if the slots Ottawa does so the operator here can expect somewhere close to $18 million guaranteed before they cross the threshold bid they made.

All of that is just to show you City Council has absolutely mo say in the process. It's all OLG and you win one just one number.

I am the love child of Karl Marx and Ayn Rand

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