The purchase price paid by the Service Provider (Ontario Gaming GTA LP) to OLG is for the gaming assets used to operate the gaming sites in the bundle, such as, gaming equipment and gaming facility leases. This purchase price is only one minor component of the financial value of the transaction to OLG and the Province. In fact, in addition to receiving the purchase price for the gaming assets, OLG retains all future gaming revenue from the bundle and is no longer responsible for capital and operating costs. Ontario Gaming GTA LP is paid a fee to operate the gaming facilities in the bundle and to invest in its development and growth which will increase revenue to OLG and the Province.
Consequently, as was done in the opinion piece, using only the asset purchase price to calculate the estimated total value of the transaction is incorrect and results in a grossly understated financial value.