OLG Approved For CA$500M In Government Aid
The OLG is in desperate need of help in order to stay afloat in a new and unprecedented slowed gaming landscape and has as such had to apply to Ontario’s government for a CA$500 rescue loan, which has now officially been granted. The money will according to the Crown corporation be used for covering a melee of expenses and contractual obligations incurred during and due throughout the course of the past three months.
The OLG closed every last one of its land-based casinos around mid-March and has since then been relying only on online gaming revenue and Lotto ticket sales in an effort to stay afloat and at least semi-operational. In the end, it clearly proved simply not enough or sufficient in order to keep the massive Crown ship afloat and a loan proved the only remaining solution to the OLG’s big and unprecedented bag of problems.
Extended Line Of Credit
The loan is being offered the OLG in the format of what will reportedly be considered an extended line of credit to the total of somewhere around CA$500 million. What with various contractual obligations still in place, even despite the global nature of the challenges currently faced by the Crown corporation, the OLG isn’t free to simply shirk its financial obligations and responsibilities.
It may be true that Ontario launched the first stage of the process of reopening businesses and commerce in general last week, but its also true that land-based casinos will only be permitted once the very last stage in the process of reopening has been reached. That a long and winding road back to liquidity now faces the OLG head-on, is therefore not too hard to grasp.
The Situation Right Now
Phase one of the reopening process saw all local construction projects receive the green light. Phase two will reportedly include a staggered re-opening of the province’s community and outdoor venues and spaces. This will ensure that Ontarians are at long last able to enjoy being outdoors and during the warmer summer months too.
Large public gatherings will only be permitted in the event that phase 1 proves to be successful. This obviously will have a deciding effect on brick-and-mortar casinos such as those operated by the OLG. The situation currently prevailing is precarious and riddled with uncertainty.
And since each of the proposed stages for reopening can span anything up to a period of 4 weeks, had it not been for government’s help, the OLG would in all likelihood not have been able to survive the slump.