Casino News

OLG Trades Windsor Casino Energy Assets to Enwave

This week, the Ontario Lottery and Gaming Corporation announced that it has completed a transaction with Enwave Windsor Holdings Limited Partnership. Via the agreement, Enwave will provide long-term energy reliability for OLG’s Windsor casino. In the meantime, the Crown agency is also looking for the next gambling operator of the casino destination.

As a Crown agency, OLG provides entertainment experiences responsibly while managing gaming facilities, province-wide lotteries, internet gaming, and charitable gaming centers. In its time it has contributed CA$59 billion to the province. The funds support healthcare, problem gambling initiatives, amateur athletes, host communities, Ontario First Nations, lottery retailers, and local charities.

Closing Enwave Agreement

As per the deal, Enwave has acquired the thermal and electrical assets of OLG’s Windsor Energy Centre and will lease the space occupied by WEC from OLG until 2040. Also, the Crown and Enwave inked a service agreement that will allow the latter to supply hot water and chilled water for the heating and cooling of the West Block of the casino complex in Windsor.

Pinder Basi, OLG’s Chief Financial and Risk Officer said the Crown is pleased with the new agreement and added that it will provide for the long-term energy needs of the Windsor gaming amenity while allowing OLG to focus on the gaming aspect. In his words, this way the Crown will continue to deliver great entertainment for customers in the city and the province.

Carlyle Coutinho, Chief Executive Officer for Enwave Energy Corporation remarked the company is thrilled to expand the partnership with OLG in Windsor. He recalled that in 2015, the firm purchased the North Block plant at the casino and invested further in the city’s district assets in 2021. He is now looking forward to continuing to provide efficient energy to the gambling venue.

The recent sale to Enwave corresponds to OLG’s response to a provincial audit report from 2021, committing to actively explore opportunities for the sale of the WEC assets. Also, the transaction adds more value for money for the Crown agency than keeping the WEC assets, with an upfront payment, ongoing annual payments, and no more future maintenance expenses.

Seeking Next Operator for the Casino

In April 2023, OLG kicked off its Request for Pre-Qualification for the casino in Windsor. This way the Crown agency will be able to hear from candidates who wish to conduct the day-to-day operations at the property. At the moment, the gaming hotspot is operated by gambling giant Caesars Entertainment, but its contract expires in 2025.

Last month, the Crown corporation provided an update on its search for the next operator. It issued Request for Proposal documents to pre-qualified proponents, which have been given the go-ahead to submit the terms of their bid to operate the gaming establishment. RFP documents and the names of the pre-approved applicants are not known to the public, while the process is still underway.

Source: “OLG Sells Energy Assets in Windsor to EnwaveOLG, November 14, 2023