US firms in pole position for Canadian casino capture

Niagra Falls
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The operational licences for two casino properties in Niagara falls are set to be sold to a company from the United States after all the Canadian firms involved in the bidding process dropped out.

The Fallsview Casino Resort and Casino Niagara are two of the most visited leisure locales in the tourist hotspot and will be leased to the successful bidder as a package for 20 years.

The property bundle is currently that of the Canadian government-backed Ontario Lottery Gaming company but is being sold in an attempt to reduce spending overheads.

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It is believed that the final firms left in the bidding process are Caesars Entertainment of Las Vegas, Hard Rock Entertainment of Florida and the Mohegan Tribe which operates out of Connecticut.

Great Canadian Gaming Corp and Gateway Casinos and Entertainment had rep- resented the best hope for the licence to go to a Canadian firm but have ruled themselves out of the running for unspecified reasons.

The Canadian Government, which currently funds the operations is looking to garner a strong output of gaming taxes from the properties whilst lessening its expenditure on them. However the new-found certainty that the venues will be run by an American company brings issues of its own.

There is worry that with all three companies having existing operations in the north east United States they will attempt to drive customers away from these Canadian properties be it through shuttle buses, inter-venue loyalty schemes or promotions.


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