IN THE MATTER OF THE RACING COMMISSION ACT, S.O. 2000, c. 20;

AND IN THE MATTER OF TELETHEATRE APPLICATIONS

On October 12, 2001, Chair Stanley Sadinsky, Vice-Chair Herb Bryant, Commissioner Bruce Duncan, Commissioner Ernest Nock and Commissioner Tom Deacon convened for a hearing of teletheatre applications from Flamboro Downs Raceway and Fort Erie Race Track. Wendy Hoogeveen, Manager of Information Services and Don Bourgeois, Legal Counsel, appeared for the Administration.

Mr. Richard Jacob appeared for Flamboro Downs Raceway and Mr. Eddie Lynn appeared for Fort Erie Racetrack. Colin Burrows appeared as a representative of the site operator of the Pool & Pony Pub in St. Catharines.

Upon hearing the submissions, the Ontario Racing Commission approved a teletheatre licence as follows:

Licensee: Fort Erie Race Track

Site: 3 Lake Street East, Grimsby, Ontario L3M 2G4

Site Operator: Stryx Bowling Centre., known as Stryx Bowling Centre

The Ontario Racing Commission denied the teletheatre applications as follows:

Licensee: Fort Erie Race Track

Site: 1030 Niagara Street, Welland, Ontario L3C 1M3

Licensee: Flamboro Downs Raceway

Site: 486 Grantham St., St. Catharines, Ontario L2M 3J7

Dated at Toronto this 16th day of October, 2001.

BY ORDER OF THE COMMISSION

Jean Major

Executive Director

Fort Erie Racetrack has made an application for teletheatre licenses in the following locations:

Stryx Bowling Centre, Grimsby

Ramada Inn, Welland

Flamboro Raceway has made an application for teletheatre licenses in the following locations:

Pool & Pony Pub, St. Catharines

Zaks, Hamilton

All of the required documents for each application have been filed and it remains to determine the applications on their respective merits. We will deal with each application in order.

Stryx Bowling Centre, Grimsby (Fort Erie)

An earlier application for this site was dismissed by the Commission in its decision dated April 10, 2001 (GEN 5/2001). That application was dismissed because Flamboro had an existing contract with Stryx and a valid teletheatre licence. That contract has since been terminated and Fort Erie has now contracted with the management of Stryx for the location of a teletheatre. As the earlier barrier to licensing has been removed, a teletheatre licence is hereby granted to Fort Erie for this location and the licence to Flamboro is cancelled.

Ramada Inn, Welland (Fort Erie)

This site is approximately 10 kilometres from Flamboro’s existing teletheatre in Welland, the Rex Hotel. As we indicated in our decision dated April 10, 2001, we are not satisfied that Welland can support two teletheatres, although the subject location is further north from the location that was previously requested and closer to the Thorold and St. Catharines markets. Accordingly, this application is dismissed.

Pool & Pony Pub, St. Catharines (Flamboro)

This location would introduce a third teletheatre into the St. Catharines market within an approximately 5 kilometre radius. As we indicated in the Addendum to our decision dated April 17, 2001 (GEN 5/2001), when Fort Erie sought a teletheatre at 444-446 Scott St., St. Catharines, we were not satisfied that this market could not support two teletheatres. However, given the size of the market, we have no reason to believe that it can support three. Furthermore, the Scott Street location is due to open on October 19, 2001, and until its results can be monitored, an application for a third teletheatre in St. Catharines is premature. Accordingly, this application is dismissed.

Zaks, Hamilton (Flamboro)

This application is granted. We note that Fort Erie consented to this application even though Hamilton is a shared home market area between Flamboro and Fort Erie for CPMA purposes.

Recommendations to the CPMA re: Home Market Areas for Teletheatres in the Hamilton/Niagara Areas

In our decision, dated April 10, 2001, we indicated that it was premature to make any recommendations to the CPMA regarding its designations of Home Market Areas for Teletheatres in the Hamilton/Niagara areas. In light of subsequent developments, we are now prepared to make recommendations.

We recommend that for teletheatre purposes, The Regional Municipality of Hamilton-Wentworth should be the exclusive territory of Flamboro Downs Raceway and we recommend that the Home Market Area for Theatre Betting, formerly designated as shared for both Flamboro Downs Raceway and Fort Erie Race Track, be adjusted accordingly.

We also recommend that for teletheatre purposes, The Regional Municipality of Niagara should be the exclusive territory of Fort Erie Race Track. We recommend that the Home Market Area for Theatre Betting, formerly designated as shared for both Flamboro Downs Raceway and Fort Erie Race Track, be adjusted accordingly, with the exemption of the two existing teletheatre locations (Buffy’s at 106 Lakeport Road in St. Catharines and the Rex Hotel at 346 King Street in Welland), currently under licence to Flamboro Downs Raceway which should be “grandfathered”. This would mean that so long as these two locations house a Flamboro teletheatre, this would be permitted. Should either location cease its operation as a Flamboro teletheatre, Flamboro’s teletheatre rights in St. Catharines and Welland would be terminated and the entire Regional Municipality of Niagara would be a Home Market Area for Teletheatre Betting for Fort Erie as prescribed by the CPMA.

We have considered alternative ways to divide the area including a proposal submitted by Flamboro on a map which we marked as Document 1 in these proceedings. Accepting this proposal would prolong the dispute between Flamboro and Fort Erie as to home market areas, a dispute that we consider to be contrary to the public interest. It would require ongoing co-operation between those parties, which we consider to be highly unlikely given the history. Accordingly, we rejected that proposal.

Stanley Sadinsky, Q.C.

Chair