Casino News

Is OLG CEO Paving His Way to Resignation, Severance Package?

Ontario Lottery and Gaming Corporation might be facing tough times as its Chief Operating Officer appears to be preparing to make his way out. The last days of February appear to be seeing a rather tough conversation between the Crown corporation and its leading individual. There has been speculation that Stephen Rigby is working on his exit package at the moment, as he is on his way out of the structure.

In an ever-changing gambling field, leading corporations also have to change and remain as flexible as possible, which has been one of the leading principles Ontario Lottery and Gaming Corporation deploys. Its financial state is crucial for survival but the Crown corporation might be struggling at the moment. Last week saw a conversation regarding buyouts being offered.

Speculations Swirl around Ontario

It could be recalled that last week saw the Crown corporation offer special buyout packages to its employees across the province. One of the main reasons for this move was the motivation to save money and optimize its further operation. Lower-level individuals within the structure of the Ontario Lottery and Gaming Corporation received the chance to opt for a buyout package.

This means that they would exit the structure thanks to the voluntary severance package. It could include various benefits, as well as specific payment covering several months. This strategy is often implemented when the company is struggling financially and would like to prevent layoffs which are known to have worse conditions. The Crown corporation might also be looking for ways in which it could save more cash.

Optimizing its work might be a sign of financial struggles laying ahead. Sault Ste. Marie is one of the areas with strong OLG presence, as there are 600 locals relying on permanent employment. Last year witnessed a gaming revenue allocation amounting to CA$2.47 billion. A confirmation has been made that the Sault Ste. Marie’s office would not be subjected to closing.

Tough Times Ahead

However, the concerns continue this week, as the Chief Operating Officer might be considering his way out of the structure. Mr. Rigby might be considering a severance package amounting to CA$1 million. For the time being, Ontario Lottery and Gaming Corporation has not confirmed any conversation related to resignation, but Ontarioโ€™s gaming industry is well-acquainted with the struggles the Crown corporation has.

One of the bigger scandals of the past years was related to the extensive renovations Mr. Rigby wanted to introduce to his office and the headquarters building. About CA$22,000 was invested in the blocking off of his personal office, making his way to and fro a more private one. He wanted to make sure that he does not have to walk out into the hallway with all other employees. Part of the furniture in his renovated office cost about CA$4,456.

These figures resulted in a public backlash that questioned the need for such expenses when it comes to the CEO office of a Crown corporation. What truly triggered the province was the annual report covering 2019. Profit of the lottery and gaming offering saw a drop amounting to CA$15.8 million. Proceeds saw an increase of CA$480 million to CA$8.3 billion. The upcoming weeks are projected to see more information on the subject.