Industry Reports

Gateway Casinos Seeks Temporary Venue ahead of Lease Expiration, KED Launch

The gaming sector of Sudbury is about to become heated in the foreseeable future, as it was recently confirmed by Gateway Casinos & Entertainment. With the deadline of its Sudbury Downs lease for operation rapidly approaching, the casino developer is seeking other locations for temporary operation ahead of Kingsway Entertainment District’s official launch. Local investor Dario Zulich has also confirmed his interest in helping the casino operator.

Gateway Casinos is one of the leading casino operators in Canada and as such, it is on a constant pursuit of offering better and more comprehensive gaming to its casino patrons. This is evident from the latest information confirmed by the City of Greater Sudbury saying the casino operator is seeking the most appropriate location for a temporary casino venue since its lease for operation at Sudbury Downs is about to expire in April 2020.

Sudbury Downs Lease Expires in 2020

The temporary solution would guarantee that players have a place to go when they want to experience premium gambling, whereas the casino operator is not going to suffer the negative impact of no operation whatsoever. This move is needed now more than ever since Kingsway Entertainment District is going to take longer than originally projected.

For the time being, the project is going to feature a permanent casino venue among other offerings such as an events center and a hotel tower, but the official launch of operation could happen in 2022. The provincial Local Planning Appeal Tribunal that replaced the Ontario Municipal Board is facing the struggle of relatively slow operation due to the amount of work that has to be done.

Gateway Casinos does not want to sit around and waste two years of gambling revenue and regular allocations to the city coffers, which is why the searching for a new temporary venue has commenced. The casino operator wants to be part of KED even after it became clear that the launch date would be postponed, as it considers it a profitable project.

Dario Zulich Might Help Relocation Too

A temporary location for casino operation is an opportunity that would guarantee steady gaming revenue, but there are other concerns that have been mentioned in relation to it. Upon finding out about Gateway Casinos’ plans, Councilor Robert Kirwan pointed out that the possibility of a temporary facility becoming a permanent one over years of operation is substantial. The casino operator might end up never leaving the new venue.

Several zoning concerns were also pointed out, as there are many variables still in the equation. For the time being Gateway Casinos has not revealed more information about its future plans in relation to Sudbury area operation and project director David Shelsted said he could not elaborate on the subject. Earlier this month the conversation regarding a temporary facility started with Mr. Zulich supposedly researching possibilities.

The potential purchase of Chateau Guay Motel and Restaurant and its further transformation into Gateway Casinos’ new temporary home was unveiled. For the time being no further information on the project has been publicly issued. This Plan B could be a positive step forward until the entertainment zone is finished and ready to welcome its first guests.