It was announced today (Monday, September 8) that the Ontario Government is seeking a service provider to operate specific areas of the Ontario Lottery and Gaming Corp.’s lucrative lottery business.
News of the announcement broke Monday morning, with the Toronto Star, pegging Canadian telecommunications giants Bell and Rogers as expected bidders on the contract.
The OLG is not looking to privatize; the Ontario government would still retain ownership and would continue to oversee the operations.
On Monday afternoon, the OLG issued the following press release.
OLG BEGINS RFP PHASE OF LOTTERY PROCUREMENT
September 8, 2014
TORONTO – The Ontario Lottery and Gaming Corporation (OLG) has initiated the final phase of its procurement process for lottery by issuing Request for Proposal (RFP) documents to pre-qualified service providers.
The RFP will enable OLG to select one service provider to run specific day-to-day operations of the lottery business in Ontario.
To OLG, the integrity of the procurement process is of the utmost importance. Procurement involves information of a commercially sensitive nature. As a result, details of the RFP documents and names of pre-qualified proponents will not be released while the process is ongoing. There will be no further communication about the RFP until a service provider is announced. OLG expects to announce the successful service provider in fall 2015.
Throughout the procurement process, OLG has engaged the services of a Fairness Monitor to provide oversight and advice to support integrity and fairness.
At approximately $2 billion annually, OLG provides the Ontario government with its largest source of non-tax revenue. Modernization will help OLG provide more money to Ontario for hospitals and other government priorities.