Gateway Casinos and Entertainment is well-known across the Canadian provinces for its extensive and diverse casino operation, further expanding over this summer. One of the recently acquired casino venues part of the Central Gaming Bundle was Casino Rama located near Orillia, but as it turns out now, the casino developer and operator might have some concerns in relation to the future operation of the facility.
The leading company recently decided to shed more light on its deals inked over the span of this year and this happened with the help of a filing to the US Securities and Exchange Commission. The company has started its $100-million Initial Public Offering and aims to be list its shares on the New York Stock Exchange under the symbol “GTWY”.
This move has prompted the operator to produce the public with crucial and never-before-seen information about previous deals and plans for the foreseeable future.
Operator Projects Hassle in the Future
In the said 239-page filing the developer reveals many details around the arrangement between Gateway Casinos and Ontario Lottery and Gaming Corporation greenlighted this June, but it also shares its estimations and concerns about the current operation of the casino venue and how the changing gambling landscape in the region could affect it. The casino location is unique in the sense that the management arrangement is quite complicated.
As part of the casino expansion in the region of Ontario and Western Canada, the gambling operator entered into a lease contract for Casino Rama Resorts situated on Chippewas of Rama First Nation’s Lands. Thanks to this agreement and the fact that many parties involved in it will aim to mutually benefit from the future operation on site, Gateway Casinos stated that projections are for quite the sluggish decision-making process.
Any potential changes to the way the gambling location conducts its business from here on out would have to be consulted with Rama First Nation’s affiliate Casino Rama Inc. as well as the OLG, sub-subleasing the gambling property to Gateway Casinos. Each and every participant in this arrangement has its rights and obligations listed in the arrangement inked back in June aiming to provide transparency and clarity to the process.
Details around Casino Resort Acquisition
However, the filing still expresses the reasonable concerns of the casino developer and operator. What should be taken into account when it comes to this particular operation is that there are many levels to it. The land lot on which the casino resort rises is leased by Casino Rama Inc. In turn, the property is being leased to OLG, which subleases it to Gateway Casinos.
In addition to that, there are patches of land that also belong to Rama First Nation. They are leased to OLG, subsequently leasing them to the casino operator, making this part of the arrangement slightly more hassle-free when it comes to potential changes. It could e recalled that the beginning of May 2018 saw a long-anticipated decision being approved – the Chippewas of Rama First Nation Land Code came here to stay. This meant that the Government of Canada is no longer in charge of the lands.
The casino resort currently employs some 1,400 individuals working in unison to bring the best experience to casino patrons and guests. It is also the location with the biggest number of employees overseen by Gateway Casinos. The casino developer came into possession of this venue as part of the Central Gaming Bundle of casino venues which amounted to CA$89.3 million. This portion comprises of Casino Rama, Gateway Innisfil, as well as the permit for casino operation in Wasaga Beach.