The Ontario Lottery and Gaming Corporation (OLG) announced that it will terminate the Optional Slots at Racetracks Program (OSARP) by March 31, 2026. This move will close the slot machine facilities at Sarnia's Hiawatha Horse Park and Kawartha Downs Racetrack, totaling about 150 devices. The OSARP was launched in 2019 as a temporary measure to support racetracks affected by the termination of the province's slot machine program in 2012. The closure decision has raised concerns among local officials about economic impacts and job losses, with OLG committing to a smooth transition and continued financial support until the 2026-27 fiscal year.
Program Background and Closure Timeline
The Ontario Lottery and Gaming Corporation (OLG) formally announced that it will terminate the Optional Slots at Racetracks Program (OSARP) by March 31, 2026. This decision is a scheduled program expiration measure, not a sudden policy change.
The OSARP was initially launched in 2019 to provide temporary support for racetracks that had their facilities closed or relocated after the termination of the previous slot machine program in Ontario in 2012. The program was designed from the start as a temporary measure, never intended to continue after its expiration.
Affected Venues and Equipment Scale
The closure decision will directly affect the slot machine facilities at two racetracks: Hiawatha Horse Park in Sarnia and Kawartha Downs Racetrack near Peterborough. These venues currently operate about 150 slot machine devices.
All slot machines will cease operations by the March 2026 deadline or earlier. OLG has confirmed that it will not extend or renew casino leases after the program expires and will work with operators to ensure a smooth closure.
Economic Impact and Job Losses
The closure of the slot machine facilities is expected to have a significant impact on the local economy. Since the return of slot machines to Hiawatha in early 2020, Sarnia has received millions of Canadian dollars in revenue from the project, which has been used for local projects and development.
In terms of employment, Sarnia is expected to lose between 60 and 100 jobs, while Kawartha Downs may face up to 24 layoffs. These losses are particularly challenging for small communities reliant on such industries.
Local Government and Community Reaction
Sarnia Mayor Mike Bradley expressed disappointment and concern over the closure decision. In a letter to Ontario Premier Doug Ford, he questioned the impact of the decision, especially in the current economic hardship.
Bradley criticized OLG for a lack of transparency in the closure process and called on the provincial government to explain the business rationale behind the closure. Local community leaders were also surprised by the suddenness of the decision and are seeking more explanations and information.
Racetrack Operations and Adaptation Plans
Jim Henderson, owner of Hiawatha Horse Park, mentioned that the absence of slot machines might affect the viability of the racetrack, as it has relied on gambling revenue to sustain operations. However, he remains optimistic, noting past experiences operating without slot machines.
Henderson said, "We went eight years without slot machines before," emphasizing the racetrack's resilience. The racetrack will explore other operational schemes to adapt to this change.
OLG Transition Plan and Financial Support
OLG is committed to ensuring a smooth transition for casino service providers and local communities. Tony Bitonti, the company's director of media relations, stated that the closure will be handled with careful coordination to minimize disruptions.
OLG will continue to provide financial compensation to municipal authorities until the end of the 2026-27 fiscal year, ensuring that hosting fees remain at the same level as in the 2025-26 fiscal year. This commitment is intended to alleviate financial pressures during the transition period.
Historical Background and Policy Evolution
Ontario Premier Doug Ford intervened in 2018 to restore racing sessions at racetracks like Sarnia's Hiawatha Horse Park, making the recent closure decision more unexpected for local officials.
The termination of the OSARP reflects the ongoing evolution of Ontario's gambling policy. The province is shifting its focus from temporary support measures to more permanent gambling infrastructure and market structures.
Industry Trends and Future Outlook
As the OSARP program ends in 2026, the landscape of Ontario's gambling industry will change. More focus may shift to permanent casinos and online gambling platforms, representing an overall transformation of the industry structure.
Major operators like Gateway Casinos are focusing on larger, more profitable venues, such as Sarnia's Starlight Casino Point Edward. This shift reflects the gambling industry's trend towards centralization and specialization.
Community Adaptation and Long-Term Impact
For communities like Sarnia affected by the loss of slot machine facilities, losing a reliable source of income means finding alternative revenue sources and development paths to reduce reliance on gambling revenue.
The long-term impacts include economic structural adjustments, changes in the job market, and re-planning of community development directions. These changes may require time and strategies to adapt and manage.
