Request For Proposal For An Internet Gaming Operator Issued In Ontario

On December 9, 2011, the Ontario Lottery and Gaming Corporation ("OLG") issued its long-awaited Request for Proposal ("RFP") for an operator of online gaming and betting ("iGaming") conducted and managed by the OLG.

The OLG is a Crown corporation, which acts as a Crown agent on behalf of the Ontario government. Pursuant to the federal Criminal Code, only a provincial government may "conduct and manage" gaming conducted on or through a computer or video device. However, "conduct and management" is interpreted to mean acting as the directing mind of the operation. Day-to-day operational matters may be carried out by private entities retained by the government (in this case, the OLG acting for the government) for that purpose.

For that reason, the winning bidders on the RFP will have to enter into written agreements with the OLG that set forth the OLG's responsibilities and authority in order to ensure that the provincial government does not improperly delegate its "conduct and manage" duties in relation to what the RFP calls the proposed iGaming platform. Submissions from single entities or joint ventures/consortiums are both acceptable.

OLG anticipates that the iGaming platform will consist of three separate product releases. The initial phase will implement online versions of the existing Ontario ticket lotteries, iGaming casino games, including iGaming versions of table games (i.e., blackjack, roulette, and baccarat), slots and video poker, along with player account management and customer service applications. "Video poker" does not refer to peerto- peer poker gaming, but rather to solo poker of the type seen on a video poker slot machine.

The RFP applies specifically to this initial phase of the roll out, and a different entity may be brought in to act as the OLG's operators for the products released in later phases.

The second planned product release will involve expanded gaming releases, including peer-to-peer poker, bingo, and sports betting products, along with regular new slot and casino "quick game" releases. Only the respondents who are short-listed in accordance with their RFP submissions for the first phase will be invited to submit proposals for the second phase.

The third phase will involve the expansion of the iGaming product lines released in the first two phases, along with the implementation of casual games and the introduction of iGaming through smartphones.

A respondents' meeting is planned for December 21, 2011, for...

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