In a significant development for Canada’s gaming industry, Hiawatha Horse Park in Sarnia, Ontario, has announced that its casino will cease operations in March 2026. This closure marks the end of the Optional Slots at Racetracks Program (OSARP), an initiative by the Ontario Lottery and Gaming Corp (OLG) that began in 2019 to support racetracks with additional revenue streams.
Gateway Casino Sarnia, managed by Gateway Casinos and Entertainment, features a substantial gaming facility with 150 slot machines spread across a 22,000 square foot space. However, the lease for this casino will terminate on March 31, 2026, according to OLG senior vice-president Michelle Eaton. With the lease’s expiration, the casino operations will conclude, as there will be no lease extension. Eaton assured that OLG is committed to working with property owners and the casino service provider to ensure a smooth decommissioning process.
OLG spokesperson Tony Bitonti emphasized that the end of OSARP had been predetermined for March 31, 2026. He noted that all partners involved, including the casino service providers and property owners, have been aware of this timeline and are collaborating closely to facilitate a seamless transition.
The closure of the casino is set to have significant economic implications for the local community. Sarnia Mayor Mike Bradley has expressed deep concern over the anticipated loss of more than 100 jobs, a situation he described as unacceptable during challenging economic times, compounded by ongoing trade tensions with the US. The mayor’s concerns were communicated in an email to Ontario Premier Doug Ford, highlighting the broader repercussions on the local economy and the horse racing industry.
The decision comes at a time when the OLG is expanding its digital presence. In August, OLG launched online horse racing betting in Ontario, offering players the opportunity to place wagers on live horse races via the Woodbine Entertainment Group’s product through OLG.ca and the OLG app. This initiative positions OLG as the first Canadian provincial lottery and gaming agency to provide access to online horse racing wagering, allowing bets on races both locally and internationally through pari-mutuel wagering, the only legal betting method for horse racing in Canada.
While the cessation of casino operations at Hiawatha Horse Park may signify the end of an era for the local gaming scene, it also highlights a shift towards digital engagement and diversified revenue streams within the industry. The move towards online betting is seen as a strategic adaptation to changing market demands and technological advancements.
From a different perspective, some industry observers argue that the closure could lead to potential opportunities for redevelopment and repurposing of the site. With the end of the casino lease, stakeholders might explore new ventures that align with emerging trends and community needs.
The impact of the casino closure on the horse racing industry remains a critical concern. The cessation of the OSARP and the resulting loss of slot machines, which have been a vital source of revenue for racetracks, could significantly affect the financial viability of the horse racing sector in Ontario. The industry may need to explore alternative funding models or partnerships to sustain operations and support the livelihoods of those dependent on it.
As the March 2026 deadline approaches, all eyes will be on how OLG and local stakeholders navigate this transition. The challenge lies not only in managing the economic ramifications but also in envisioning a future that adapts to the evolving landscape of the gaming and entertainment industry in Ontario.
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