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Great Canadian Gaming Completes Acquisition of First Casino Bundle in Ontario Gaming Modernization Process
Great Canadian Gaming Completes Acquisition of First Casino Bundle in Ontario Gaming Moder...
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[{"type":"text","content":"\n\n\n\nGreat Canadian Gaming Completes Acquisition of First Casino Bundle in Ontario Gaming Modernization Process\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nGreat Canadian Gaming Completes Acquisition of First Casino Bundle in Ontario Gaming Modernization Process\nCanada NewsWire\nRICHMOND, BC, Jan. 11, 2016\n\n\n\nRICHMOND, BC, Jan. 11, 2016 /CNW/ - Great Canadian Gaming Corporation [TSX:GC] (\"Great Canadian\" or \"the Company\") announced today that Ontario Gaming East Limited Partnership (\"Ontario Gaming East LP\" or \"the Partnership\"), a partnership in which the Company now owns a 90.5% share, completed its previously announced (September 9, 2015) acquisition of Ontario Lottery and Gaming Corporation's (\"OLG's\") Gaming Bundle 2 (East) (the \"East Gaming Bundle\") for a purchase price of $51.3 million including certain gaming assets, working capital of approximately $12.3 million, and applicable taxes arising from the transaction. The existing gaming properties acquired within the East Gaming Bundle consist of  Shorelines Casino Thousand Islands (formerly OLG Casino Thousand Islands), Shorelines Slots at Kawartha Downs (formerly OLG Slots at Kawartha Downs), and a proposed gaming property in the community of Belleville.\n\nWith the acquisition complete, the Partnership signed a 20-year casino operating and services agreement (\"COSA\") with OLG, which is also renewable at OLG's option for additional consecutive terms of 10 years each.  Under the COSA, the Partnership will provide OLG a pre-established, guaranteed annual gaming revenue threshold amount plus 30% of gross gaming revenue above the pre-established gaming revenue threshold for each year.  The Partnership will receive an annual service provider fee comprised of (i) a guaranteed base fixed fee component (which will be approximately $15 million per year before the Belleville facility is opened, increasing to $24 million per year thereafter), (ii) a variable component equal to 70% of gross gaming revenue above the applicable pre-established annual gaming revenue threshold retained by ...