OLG reaches agreement to keep slots in Elora

A sign advertising the slots at Grand River Raceway is seen in Elora, Ont. on Wednesday, March 14, 2012.

The Grand River Raceway in Elora will be able to keep its slot machines, but only under a new funding arrangement that will see the horse racing industry receive less money.

A new deal between the raceway and the Ontario Lottery and Gaming Corporation has been approved in principle. It’s expected to be finalized by the end of the month.

Under the agreement, the raceway will no longer see the 20 per cent of slot machine revenue it has been receiving. Instead, the track will get a set fee through a commercial rental agreement.

Grand River Raceway general manager Dr. Ted Clarke says the agreement provides some stability for the facility, but doesn’t guarantee a long-term future for horse racing in rural Ontario.

“It does lend to the stability of the Grand River Agricultural Society, and the Grand River Agricultural Society hopes to continue to be involved in horse racing, but the lease itself will not guarantee any horse racing,” he tells CTV.

The horse racing industry says ending the revenue-sharing agreement will cost as many as 50,000 jobs in rural Ontario.

There are 240 slot machines at Grand River Raceway.