IPR2023-01235, No. 2009 Exhibit - EX2009 (P.T.A.B. Nov. 16, 2023) (2024)

`

`contents
`
`Chief Executive Officer
`
`2 Message from the Chair
`3 Message from the President and
`4 Economic Impact
`6 The Path Forward
`
`11 Overview
`12 Sources of Revenue
`12 Financial Highlights
`13 Board of Directors
`
`EX2009.0002
`
`

`

`16 Executive Committee
`20 Governance
`21 Management’s Discussion
`40 Management’s Responsibility for
`
`Annual Reporting
`
`and Analysis
`
`41 Independent Auditors’ Report
`42 Consolidated Financial Statements
`46 Notes to the Consolidated Financial
`
`Statements
`
`EX2009.0003
`
`

`

`MESSAGE FROM
`THE CHAIR
`
`In 2017–18, the Ontario Lottery and Gaming Corporation
`(OLG) accomplished a number of objectives. We moved
`forward with the modernization of Land-based Gaming,
`took important steps in our digital evolution, introduced
`new lottery products and forged new agreements with the
`horse racing industry and charitable gaming sector – all
`while continuing to drive strong financial results.
`
`OLG’s Board of Directors is committed to our mandate of
`ensuring a strong return to the Province of Ontario, while
`maintaining OLG’s leadership in Responsible Gambling
`(RG) programming. By providing strong corporate gover-
`nance, we play an important role in maintaining the trust
`Ontarians have in OLG – which is fundamental to OLG’s
`success and the long-term interests of our shareholder, the
`Government of Ontario.
`
`Our board remains focused on our commitment to
`pursuing a gold standard for RG and has taken an active
`interest in the establishment of PlaySmart Centres and the
`development of tools and resources to educate players.
`OLG continues to work closely with government and inde-
`pendent agencies to find newer and better ways to support
`people who are concerned about their own or a loved one’s
`gambling. That commitment and work extends to include
`our land-based gaming service providers. OLG’s operating
`agreements have detailed RG terms, including required
`third-party accreditations with RG Check for gaming and
`the delivery of OLG’s RG employee training programs.
`
`Our board will continue to employ governance best
`practices and we look forward to guiding the senior
`management team in the coming year.
`
`We are confident that the steps OLG’s President and CEO
`and his executive team are taking to move the organization
`forward today will position OLG for even greater success in
`the future.
`
`2
`
`George L. Cooke
`Chair, Board of Directors
`
`OLG ANNUAL REPORT 2017–18
`
`EX2009.0004
`
`

`

`MESSAGE FROM
`THE PRESIDENT AND CHIEF
`EXECUTIVE OFFICER
`
`In 2017–18, OLG delivered $2.49 billion in Net Profit to the
`Province, which is supporting key government priorities,
`like health care, amateur athletes and problem gambling
`prevention, treatment and research. Hundreds of millions
`more dollars went to host communities, First Nations,
`lottery retailers and local charities across the province.
`These remarkable results are a testament to the focus and
`ingenuity of our organization which continues to deliver on
`our current-day business, while meeting the challenges of
`transforming for the future.
`
`Our success this year also demonstrates that the predicted
`benefits of our modernization are being realized and
`exceeded. It has been six years since OLG launched its
`modernization and we are nearing the completion of the
`transformation of Land-based Gaming. Today, service
`providers are investing in gaming sites and communities
`across the province, creating jobs and providing customers
`with new and exciting entertainment options.
`
`This past year was our busiest in terms of modernizing
`Land-based Gaming. Gateway Casinos & Entertainment
`Limited took over the Southwest and North Gaming Bundles
`in May 2017; HR Ottawa LP (Hard Rock Casino Ottawa) took
`over the Ottawa Area Gaming Bundle in September 2017; and
`Ontario Gaming GTA LP took over operations of the GTA
`Gaming Bundle in January 2018.
`
`While our land-based gaming operations have been trans-
`ferring to service providers, we have been enhancing our
`technology and pursuing a digital transformation. We have
`taken a number of important steps to help us connect with
`customers in new ways. Specifically, OLG has gone to market
`to obtain a new player platform and, separately, a vendor
`to replace, update and expand our existing lottery terminal
`network. The new platform will provide an enterprise-wide
`digital foundation and be a central point of integration for
`OLG’s products and channels.
`
`Our investments in the player platform and terminal
`network will allow us to introduce new games and improve
`the online and retail experiences for customers. This
`includes an enhanced and expanded sports betting offering.
`OLG is seeking a service provider to help us offer a variety of
`
`new sports products at retail locations, as well as online and
`through mobile devices.
`
`OLG is making fundamental changes to how lottery and
`gaming is delivered in Ontario, but our commitment to
`Responsible Gambling (RG) will remain a cultural touchstone
`and will always be at the heart of everything we do. To help
`us build on our RG efforts, OLG held its fourth PlaySmart
`Forum this year. The two-day event was bigger and better
`than ever, bringing together OLG employees and industry
`experts to share insights, stories and goals.
`
`We have begun the work of designing an organizational
`structure that will meet the needs of our new and emerging
`business. We are creating an environment that optimizes
`the talent that currently exists at OLG – an environment
`that ensures people are getting the support they need to
`make their best contribution. We want our employees to
`have the space to be themselves and empower them to use
`their imaginations and skills to benefit the people and the
`Province of Ontario. We are committed to building a culture
`of inclusion where employee differences are valued and
`celebrated.
`
`The success OLG has had this year would not be possible
`without our employees. I want to personally thank them for
`all they do for OLG at work and in their communities.
`
`I would also like to take this opportunity to thank OLG’s
`Board of Directors for its support, guidance and encour-
`agement as the management team and I work to move the
`business forward.
`
`This coming year will be a pivotal one for OLG – a year in
`which we largely complete our modernization and continue
`our digital evolution. I am proud of the organization we
`are building and the benefits it will provide Ontarians for
`generations to come.
`
`Stephen Rigby
`President and Chief Executive Officer
`
`3
`
`MESSAGE FROM THE CHAIR AND MESSAGE FROM THE PRESIDENT AND CHIEF EXECUTIVE OFFICER
`
`EX2009.0005
`
`

`

` ECONOMIC IMPACT
`
` Since 1975, the Ontario Lottery and Gaming Corporation (OLG or the Corporation) has provided nearly $50 billion to the
`Province and the people of Ontario. OLG is also helping to build a more sustainable horse racing industry in Ontario. OLG’s
`annual payments to the province have helped support provincial priorities including the operation of hospitals; problem
`gambling prevention, treatment and research; amateur sport; and local and provincial charities. In fi scal 2017–18 alone, OLG
`contributed $2.49 billion in Net Profi t to the Province to support these programs.
`
`In addition to OLG’s payments to the province, there are several direct benefi ciaries of gaming proceeds, including host
`municipalities and Ontario First Nations.
`
`OLG operations also contribute to the economy in a number of other ways. In fi scal 2017–18, OLG generated more than
`$4.1 billion in total economic activity in Ontario.
`
` NET PROFIT TO THE PROVINCE*
`
`2.49
`$
`billion
`
`• $2.44 billion to support provincial
`priorities including the operation of
`hospitals, amateur sport and local
`and provincial priorities
`
`• $45 million directed to the
`Ministry of Health and Long-Term
`Care for problem gambling prevention,
`treatment and research**
`
`*Net Profi t to the Province is the amount the Corporation returns to
`the Province of Ontario after stakeholder and other payments.
`
`**based on government policy that directs 2% of annual forecasted
`OLG slot machine revenue (before service provider fee deductions
`and excluding slot machine revenue from the Resort Casinos)
`
`4
`
`OLG ANNUAL REPORT 2017–18
`
`EX2009.0006
`
`

`

`SUPPORT FOR LOCAL ECONOMIES
`
`$855.8 MILLION
`in personnel costs for OLG’s 12,600 direct and indirect
`employees*** across the province
`
`1.58
`$
`billion
`
`$278.0 MILLION
`in commissions to lottery retailers across Ontario
`
`$160.8 MILLION
`in payments to municipalities and Ontario First Nations
`that host gaming facilities and Charitable Gaming Centres
`
`$139.6 MILLION
`in payments to Ontario First Nations through the
`Gaming Revenue Sharing and Financial Agreement
`
`$142.7 MILLION
`in goods and services purchased from Ontario businesses to support
`land-based gaming facilities owned and/or operated by OLG
`
`***Direct employees are those employed directly by OLG. Indirect employees
`***Direct employees are those employed directly by OLG. Indirect employees
`are those employed by the Resort Casinos.
`
`Host municipalities benefi t directly from hosting fees, property tax revenue, development
`fees and the creation of jobs.
`
`CORPORATE RESPONSIBILITY
`
`$19.1 MILLION
`that OLG directed to its Responsible
`Gambling program, including
`Resource Centres, education and
`technology, program delivery, staff
`training and self-exclusion capital costs.
`
`64.7
`$
`million
`
`$41.4 MILLION
`in Charitable Gaming proceeds
`distributed to participating local charities
`
`$4.2 MILLION
`in corporate and lottery festival and
`event sponsorships
`
`:,.
`
`ECONOMIC IMPACT
`
`5
`
`EX2009.0007
`
`

`

`THE PATH FORWARD
`
`The Ontario Lottery and Gaming Corporation (OLG or the Corporation) made significant strides in fiscal 2017–18 in the ongoing
`pursuit of its Vision: To develop world-class gaming entertainment for Ontario. OLG did this by developing partnerships, intro-
`ducing new offerings and improving and expanding existing gaming and lottery experiences. Most notable this year was the
`continuing diligent transfer of gaming sites to service providers, furthering OLG’s strategy to shift responsibility for day-to-day
`operations and capital investment to the private sector. Optimizing its investments will help OLG grow its annual Net Profit to
`the Province into the future.
`
`Our Vision: To develop world-class gaming entertainment for Ontario
`
`GUIDING PRINCIPLES
`
`Innovation
`Make innovation a key driver of how we grow
`
`Customer Focus
`Assess our impact on customers and their
`experiences in everything we do
`
`STRATEGY
`
`Culture of Performance
`Develop a high functioning organization that
`responds to customers’ needs
`
`Policy Shaping
`Play a strong role in shaping
`gaming policy in Ontario and Canada
`to create growth opportunities
`
`Partnerships
`Effectively partner with
`stakeholders, customers, employees
`and the private sector
`
`Strong and
`Responsible
`Growth
`Create long-term
`value for customers,
`Ontario’s gaming
`market, and the
`province in a socially
`responsible manner
`
`Know Our
`Customers
`Understand our
`
`customers’ needs
`
`and identify new
`opportunities using
`
`data and analytics
`
`CUSTOMERS
`
`Responsibility
`Foster a healthy, sustainable player base
`through education, risk reduction and player
`assistance
`
`Economic Stewardship
`Drive profitable growth, be cost conscious,
`invest efficiently and generate employment
`opportunities in Ontario
`
`Digital Development
`Ensure new products and
`experiences are available where and
`when customers want them
`
`
`
`
`ORGANIZATIONAL
`CHARACTERISTICS
`
`Resourcefulness
`Identify and develop innovative
`opportunities using a
`fact-based approach
`
`Execution Excellence
`Commit to and deliver against
`strategic priorities
`
`Agility
`Focus on a bias to action and
`always be willing to take on
`new challenges
`
`
`Ownership
`Develop an environment where
`employees commit to and are held
`accountable for results
`
`Empowerment
`Create a culture of opportunity,
`transparency and trust that enables
`employees to deliver exceptional results
`
`OLG made important advances this year in its Land-based Gaming, lottery and digital businesses.
`• Responsible growth: OLG expanded its partnerships with the private sector by transferring the assets and day-to-day
`operations of additional land-based gaming sites, furthering its efforts to create investment in Ontario and upholding the
`Corporation’s commitment to responsible growth.
`• New products and services: OLG increased its product and service offerings through new apps, online and retail
`games, and new solutions at retail stores. These advancements are designed to better serve OLG customers by enhancing
`convenience and improving the gaming experience.
`• Building awareness: OLG continues to build awareness of the lottery and gaming industry in Ontario and its ongoing
`commitment to responsible gambling. In 2017–18:
`
`•
`•
`
`255 events in more than 70 communities across Ontario benefitted from nearly $4.2 million in OLG sponsorship support.
`56 PlaySmart Centres at OLG’s land-based gaming locations and Charitable Gaming Centres welcomed nearly 328,000
`visitors with 205,000 of them engaging in responsible gambling educational events.
`
`6
`
`OLG ANNUAL REPORT 2017–18
`
`EX2009.0008
`
`

`

`Stepping up our game
`
`We made some great progress in implementing strategic
`initiatives with the goal of better serving our customers.
`As OLG pursues its vision, we remain guided by our four
`customer-focused strategies:
`
`1. Strong and Responsible Growth
`
`2. Digital Development
`
`3. Know Our Customers
`
`4. Culture of Performance
`
`Providing customers with the best products and services is
`at the centre of OLG’s vision. This is demonstrated by under-
`standing customers’ needs, innovating to meet those needs
`and exercising responsibility in all aspects of its operations.
`OLG’s guiding principles are embedded in the day-to-day
`actions of its employees.
`
`5tJ
`
`Creating Strong and Responsible
`Growth
`Partnerships for a Prosperous Ontario
`OLG continues to bring new jobs and economic devel-
`opment to communities across Ontario by entering
`into several agreements with carefully selected service
`providers for certain land-based gaming sites. OLG selects
`service providers through a fair and competitive procure-
`ment process that is overseen by an independent Fairness
`Monitor. The investments that service providers make
`will enhance the gaming experience for customers, help
`increase OLG’s Net Profit to the Province and contribute
`to the overall value of economic activity generated by the
`Corporation in Ontario.
`
`While service providers are responsible for specific day-to-
`day gaming operations at some locations, OLG maintains
`a governance role by conducting and managing gaming
`within those facilities. OLG also continues to make quar-
`terly payments to each host community through Municipal
`Contribution Agreements.
`
`The Corporation is working closely with service providers
`to ensure a smooth transition for employees, requiring that
`new service providers retain employees for a period of no
`less than 12 months in their current position and geographic
`location and provide benefits including a registered pension
`plan, to eligible employees. As part of its initiative for
`responsible growth, OLG requires that service providers
`uphold the high standards of OLG’s Responsible Gambling
`program, PlaySmart.
`
`Gaming Agreements
`In fiscal 2015–16, the first transfer of gaming operations from
`OLG to a service provider occurred as OLG transitioned
`Casino Thousand Islands, the slot machine operation at
`Kawartha Downs and the opportunity to build a new site in
`the City of Belleville (East Gaming Bundle) to Ontario Gaming
`East, LP. The transition of the remaining gaming bundles that
`began or were completed in fiscal 2017–18 include:
`
`• Central Gaming Bundle: OLG entered into
`three separate agreements with Gateway Casinos &
`Entertainment (Gateway) this fiscal year, the latest being
`the selection of Gateway as the service provider for the
`Central Gaming Bundle. The bundle includes Casino
`Rama Resort, the slot machine operations at Georgian
`Downs and an opportunity to build a new gaming and
`entertainment facility in Wasaga Beach or Collingwood.
`We anticipate the gaming sites in the Central Gaming
`Bundle to transition to Gateway in the summer of 2018.
`
`• North and Southwest Gaming Bundles: In May
`2017, OLG entered into two separate 20-year agree-
`ments with Gateway, under which Gateway assumed
`the assets and day-to-day operations of facilities within
`the North and Southwest Gaming Bundles. On May
`9, Gateway assumed the assets and operations of the
`Southwest Gaming Bundle that includes Casino Point
`Edward and the slot machine operations at Clinton
`Raceway, Dresden Raceway, Hanover Raceway, Western
`Fair District and Woodstock Raceway. On May 30,
`Gateway assumed the assets and operations of the
`North Gaming Bundle that includes the casinos in
`Sault Ste. Marie and Thunder Bay and the slot machine
`operations at Sudbury Downs. Gateway also has the
`opportunity to build a new gaming and entertainment
`facility in both Kenora and North Bay.
`
`• Ottawa Area Gaming Bundle: In May 2017, OLG
`selected HR Ottawa, LP, known as Hard Rock Casino
`Ottawa, as the service provider for the Ottawa Area
`Gaming Bundle. Under the terms of a 20-year Casino
`Operating and Services Agreement, Hard Rock Casino
`Ottawa assumed the assets and day-to-day operations
`of the slot machine operations at Rideau Carleton
`Raceway effective September 12, 2017.
`
`7
`
`THE PATH FORWARD
`
`EX2009.0009
`
`

`

`OLG will contribute to the efficient and effective manage-
`ment of this funding program by making available up-to-date
`facts and information related to the industry in Ontario. OLG
`established the Performance Management Excellence Group
`in early 2016 and began tracking industry performance
`measures to support fact-based decision making. Its first
`quarterly report was published in fiscal 2017–18.
`
`Stepping Up Our Gaming Platforms
`In May 2017, OLG issued Requests for Proposal for:
`
`•
`•
`
`new lottery terminals and networks in retail stores
`a new player platform that would act as an enter-
`prise-wide digital foundation for OLG’s products
`
`In June 2018, OLG signed an agreement to purchase approxi-
`mately 11,000 new lottery terminals, the related retail
`network and support services. The new terminals, which
`will replace existing terminals in retail locations throughout
`Ontario, are planned to be installed in fiscal 2019–20 and will
`offer a better transactional experience for customers and
`enhanced functionality for retailers.
`
`A player platform aims to improve the ways OLG connects
`with customers within a framework of social responsibility.
`It would allow for the addition of new games, improve
`the online customer experience and enable agile mobile
`responsiveness. It would also enhance OLG’s existing digital
`capabilities in areas like player registration, responsible
`gambling controls and player accounts.
`
`These changes will ensure OLG’s technology and product
`solutions are responsive to changing customer needs.
`
`• Greater Toronto Area (GTA) Gaming Bundle:
`In August 2017, OLG selected Ontario Gaming GTA LP
`(OGGLP) as the service provider for the GTA Gaming
`Bundle. The partnership is comprised of the Great
`Canadian Gaming Corporation, Brookfield GTA Gaming
`Management Inc. and Clairvest Group Inc. On January
`23, 2018, OGGLP assumed the assets and day-to-day
`operations of the GTA Gaming Bundle that includes the
`Great Blue Heron Casino and the slot machine opera-
`tions at Ajax Downs and Woodbine Racetrack.
`
`• West GTA Gaming Bundle: In December 2017,
`OLG selected Ontario Gaming West GTA LP (OGWGLP)
`as the service provider for the West GTA Gaming
`Bundle, which is comprised of Casino Brantford and
`the slot machine operations at Flamboro Downs, Grand
`River Raceway and Mohawk Racetrack. OGWGLP
`partners are Great Canadian Gaming Corporation and
`Clairvest Group Inc. Under the terms of a 20-year
`Casino Operating and Services Agreement, OGWGLP
`assumed the assets and day-to-day operations of the
`gaming facilities effective May 1, 2018.
`
`• Niagara Gaming Bundle: In April 2017, OLG issued
`a Request for Proposal to the pre-qualified proponents
`selected to bid on the Niagara Gaming Bundle that
`includes Casino Niagara and Fallsview Casino Resort.
`The successful proponent will also operate the future
`Niagara Falls Entertainment Centre. OLG expects to
`select the service provider in late summer of 2018.
`
`Continuing its collaboration with the charitable gaming
`industry, OLG is working to enhance the Charitable Gaming
`Operating Agreement with service providers and intro-
`duce new electronic games for customers – all to help the
`industry sustain and grow its support for Ontario’s charities.
`The Corporation expects to be in a position to announce
`and implement the new business model in fiscal 2018–19.
`As of March 31, 2018, the Charitable Gaming Revitalization
`Program has provided $193.1 million to approximately 1,800
`local participating charities in Ontario.
`
`Announced on March 23, 2018, OLG, the Ontario govern-
`ment and the horse racing industry reached a landmark,
`long-term funding agreement that provides the industry
`with up to $105 million each year for 19 years. Effective April
`1, 2019, OLG will provide the funding for this agreement that
`benefits all racetracks, breeds and horsepeople in Ontario.
`Nearly two decades of stable funding will give the industry
`the confidence it needs to plan breeding cycles, address
`supply issues and make long-term business decisions.
`
`8
`
`OLG ANNUAL REPORT 2017–18
`
`EX2009.0010
`
`

`

`Breaking Ground
`Niagara Falls Entertainment Centre
`Construction started on the new Niagara Falls
`Entertainment Centre (NFEC) in October 2017. The NFEC,
`which Niagara Falls Entertainment Partners will build,
`finance and maintain, is expected to help drive long-
`term economic development in Niagara Falls through
`job creation and tourism. The state-of-the-art centre
`represents a private sector- investment of more than
`$130 million that will feature seating for more than 5,000
`patrons and will create over 800 construction and enter-
`tainment industry jobs in the city and surrounding area.
`The new NFEC will accommodate larger concerts, shows
`and attractions, drawing more visitors to the Niagara Falls
`region and the Niagara-area casinos. The service provider
`for the Niagara Gaming Bundle is expected to commence
`operation of the NFEC in June 2019.
`
`New OLG Prize Centre
`In November 2017, OLG officially unveiled the newly
`updated OLG Prize Centre in Toronto. The new Prize
`Centre features a PlaySmart Centre that provides
`customers with facts, tools and advice on gambling; a new
`wicket and entrance that improves accessible customer
`service; larger and more comfortable waiting areas for
`customers; and a lottery retail kiosk in the lobby. The
`enhanced space also improves the work experience for
`Prize Centre employees.
`
`Recognized for Responsibility
`OLG is dedicated to working with Indigenous communi-
`ties to build meaningful relationships and partnerships. In
`June 2017, OLG’s Social Responsibility team was presented
`with the Bear Award from Indige-Spheres to Empowerment,
`a non-profit organization dedicated to the well-being of
`Indigenous Peoples. The Bear symbolizes leadership, protec-
`tion, and bridge-building between cultures. The award
`recognizes OLG’s collaborative work to advance Responsible
`Gambling efforts within Indigenous communities in Ontario
`and the networks developed for future partnerships
`between OLG and Indigenous communities in Ontario.
`
`Inclusive Communities
`Sponsorship of PRIDE events allows OLG to acknowledge,
`celebrate and support the LGBTQ+ community and build a
`culture of inclusion. OLG is an employer that values diver-
`sity and our employees are afforded the opportunity to
`participate in these important and celebratory community
`events. In 2017, OLG was a proud sponsor of PRIDE events
`in Ottawa, London, Brantford, Thunder Bay and Toronto
`(Pride Toronto and Toronto ProPride).
`
`□
`
`Fostering Digital Development
`OLG made great strides in its digital development
`this past year by investing in new apps and online tools to
`enhance the digital gaming experience of customers.
`
`OLG Lottery App
`•
`Launched in June 2017, the OLG Lottery App intro-
`duced a new, easy and convenient way for players to
`scan lottery, INSTANT and sports tickets at any time
`and instantly determine if they are winners. The app
`also allows customers to view current jackpot amounts
`and recent winning numbers, set reminders to buy
`tickets, check OLG lottery gift card balances, locate
`nearby lottery retailers and access information on OLG’s
`Responsible Gambling program. This new app better
`connects OLG with its customers while enhancing their
`gaming experience.
`
`PlayOLG Casino App
`•
`An extension of the PlayOLG website, this new app
`brings PlayOLG casino games to customers’ smartphones
`and allows them to deposit funds and access PlaySmart
`information by extending their Responsible Gambling
`settings from their desktops to their smartphones.
`
`OLG also has RFPs in market for sports betting and digital
`web and apps. These initiatives will integrate with OLG’s
`new player platform offering new digital opportunities to
`enhance customers’ gaming experience while maintaining
`the organization’s commitment to Responsible Gambling.
`
`New Ways to Play
`• PRO•LINE App
`This new app makes it easier for players to “Get into
`the game.” Consistent with its efforts to better serve
`customers and make gaming easier and more enjoyable,
`the PRO•LINE app allows players to build their sports
`game tickets right on their mobile phones, eliminating
`the need for paper in the selection process.
`• HIT OR MISS
`The first lottery game that allows players to watch
`draws as they happen on the OLG Lottery App or
`the OLG website, HIT OR MISS can be played on a
`computer or smartphone. While players still purchase
`their tickets at lottery retailers, the true gaming experi-
`ence of HIT OR MISS is fully digital.
`• Online Lottery Subscriptions
`In January 2018, OLG launched online lottery subscrip-
`tions on PlayOLG to further enhance the lottery
`experience for customers by focusing on convenience
`and ease of access.
`
`9
`
`THE PATH FORWARD
`
`EX2009.0011
`
`

`

`0 •
`
` Knowing Our Customers
` Beyond its digital efforts, OLG is making gaming more
`accessible to all customers by continuing to expand in
`key areas and providing customers with new games and easy
`access to current products and services.
`
`• THE BIG SPIN
`In September 2017, OLG launched THE BIG SPIN, an
`INSTANT ticket that combines traditional scratch
`play with a spinning wheel animation on the lottery
`terminal customer display screen and a chance to win
`an in-person spin on THE BIG SPIN Wheel at the OLG
`Prize Centre in Toronto. As the spin of the big wheel
`is streamed live, everyone can now join in on the
`winning moment.
`
`• Multilane Solutions
`Starting in 2017, customers passing through more than
`1,600 checkout lanes at 260 select Metro and Food
`Basics stores across Ontario were able to purchase a
`QUICKTICKET, which is a pre-printed LOTTO MAX and
`LOTTO 6/49 ticket. OLG is also piloting a second inno-
`vation that allows customers at 2,400 checkout lanes at
`235 Loblaw stores to purchase unique tickets for these
`same games. This technology is expected to be fully
`rolled out by November 2018.
`
`• $5 INSTANT IN THE MONEY MULTIPLIER
`This new horse-themed lottery ticket builds excite-
`ment and awareness about horse racing by combining
`OLG’s established INSTANT brand with its support for
`Ontario’s horse racing industry.
`
`• Sports Betting Expansion
`In November 2017, OLG issued a Request for Proposal
`for enhanced and expanded sports betting in Ontario.
`New technology will bring innovation and variety to
`sports products available at retail locations, online and
`through mobile devices while maintaining a focus on
`Responsible Gambling (RG) by including PlaySmart
`content in both online and retail channels and RG tools
`and resources for online customers.
`• Knowing More
`In fiscal 2017–18, OLG completed a Request for Proposal
`for an Enterprise Analytics Platform to centralize enter-
`prise data and advance its analytical capabilities across
`the organization. This initiative supports not only the
`development of new gaming products, channels and
`services but also OLG’s commitment to responsible
`growth and risk management.
`
` Driving a Culture of Performance
`In October 2017, OLG introduced “Living OLG Organizational
`Characteristics”, a training and resource system to support
`employees as they continue to learn and adopt the traits by
`which they can thrive and succeed within OLG’s changing
`operating environment. OLG aims to actively manage its
`working culture and set itself up for long-term success by
`encouraging employees to embody these attributes.
`
`These characteristics have allowed employees to advance
`OLG’s strategic initiatives and helped to drive growth and
`innovation – all with the aim of creating a better customer
`experience and enhancing the gaming and lottery industry
`in Ontario.
`
`Stepping forward
`This was an exceptionally strong year for OLG as it marked the launch of many new digital
`and retail products and services and the transition of multiple gaming bundles to service
`providers, bringing investment to communities across Ontario. This year also demonstrated
`OLG’s unwavering commitment to responsible and sustainable growth.
`
`Continued economic growth and investment over the next 12 months is expected with the
`completion of existing procurements and the continuing construction of the Niagara Falls
`Entertainment Centre, among other initiatives.
`
`As OLG continues to step up its game, exciting things are sure to come.
`
`10
`
`OLG ANNUAL REPORT 2017–18
`
`EX2009.0012
`
`

`

` OVERVIEW
` Ontario Lottery and Gaming Corporation (OLG or the Corporation) and the
`operators of the Resort Casinos employ approximately 12,600 people across
`Ontario. OLG conducts and manages gaming facilities, the sale of province-
`wide lottery games, PlayOLG Internet Gaming and the delivery of bingo and
`other electronic gaming products at Charitable Gaming Centres. OLG is also
`helping to build a more sustainable horse racing industry in Ontario.
`
`The Corporation is intended to provide gaming entertainment in an effi cient
`and socially responsible manner that maximizes economic benefi ts for the
`people of Ontario, related economic sectors and host communities.
`
`The Ontario Lottery and Gaming Corporation Act, 1999 requires that net
`revenue from its operations be paid to the Government of Ontario Consoli-
`dated Revenue Fund. This revenue has helped support provincial priorities
`including the operation of hospitals; problem gambling prevention, treat-
`ment and research; amateur sport; and local and provincial charities.
`OLG’s Charitable Gaming program also makes direct funding contributions
`to participating charitable gaming associations.
`
`OVERVIEW
`
`11
`
`EX2009.0013
`
`

`

` SOURCES OF REVENUE
`
`OLG’s operations and revenues are organized under four lines of business and a Corporate Services division. In fi scal 2017–18,
`these four lines of business collectively generated $7.58 billion in revenue.
`
`LOTTERY: $3,780 MILLION
`OLG operates 22 terminal-based lottery and sports games and offers 79 INSTANT lottery products through approxi-
`mately 9,800 independent retailers across the province.
`
`CHARITABLE GAMING: $172 MILLION
`OLG conducts and manages the operations of 31 Charitable Gaming Centres across Ontario. In addition to the classic
`paper-based play, these sites offer a variety of bingo and break open ticket games in electronic formats.
`
`LAND-BASED GAMING*: $3,553 MILLION
`OLG is responsible for conducting and managing gaming at four Resort Casinos (Caesars Windsor, Casino Rama,
`Casino Niagara and Niagara Fallsview Casino Resort) and at 21 slots and casino facilities operated by either OLG or
`service providers.
`
`A Casino Operating and Services Agreement (COSA) governs each service provider’s operation of the gaming sites.
`OLG’s share of revenue from service-provider-operated gaming sites is also defi ned in each COSA. In accordance with
`International Financial Reporting Standards, OLG recognizes revenue from these sites differently f