Ontario’s gambling landscape is set to change as the Ontario Lottery and Gaming Corporation (OLG) prepares for the closure of its Optional Slots at Racetracks Program (OSARP) by March 31, 2026. This move will impact several racetracks that have benefited from temporary gaming support since 2019, including Gateway Casino Sarnia at Hiawatha Horse Park in Sarnia and Kawartha Downs near Peterborough. Both venues, which currently feature about 150 slot machines, will cease operations on or before the March 2026 deadline.

The End of OSARP and Its Consequences

The Optional Slots at Racetracks Program was introduced in 2019 to support horse racing tracks where slot facilities had either closed or were relocated after Ontario ended its previous slots program in 2012. The closure of the Sarnia and Kawartha Downs casinos is the direct result of the program’s scheduled end. As a temporary measure to support the horse racing industry, the program was never intended to continue beyond its set expiration. OLG confirmed in a statement that there will be no extensions or renewals of casino leases after the expiry date, and the closure of the venues will proceed smoothly in collaboration with the casino operators.

Ontario Premier Doug Ford had intervened back in 2018 to reinstate slots at racetracks like Sarnia’s Hiawatha Horse Park, making the recent announcement all the more surprising to local officials. The suddenness of the decision, combined with the lack of rationale provided, has left local politicians and community leaders seeking answers.

The loss of the slots will undoubtedly have a significant effect on the local economies of both Sarnia and Kawartha Downs. In Sarnia, Gateway Casinos Sarnia, which has operated for several years, is located near the border with Michigan. The city has benefited from the slots program, receiving substantial financial support from OLG over the years. Since the slots’ return to Hiawatha in early 2020, Sarnia has collected millions of dollars, contributing significantly to local projects and developments.

Sarnia Mayor Mike Bradley expressed disappointment and concern over the closure. In a letter to Ontario Premier Doug Ford, he questioned the decision’s impact, especially given the current economic struggles related to U.S. tariffs and the global financial climate. Bradley criticized the lack of transparency from OLG regarding the closure and called on the province to justify the business case behind shutting down the slots at the racetrack.

The closure of the slots at both Sarnia and Kawartha Downs will also lead to job losses, which has drawn attention from both local leaders and employees. In Sarnia, it is estimated that between 60 and 100 jobs will be lost, while Kawartha Downs may face a reduction of up to 24 positions. These job cuts come at a time when the economy is already under strain, especially in smaller communities that rely on such industries.

Jim Henderson, the owner of Hiawatha Horse Park, indicated that the absence of slots could impact the racetrack’s viability, which has relied on gaming revenue to support operations. However, Henderson remains optimistic, noting that they had operated without slots in the past and would explore other options moving forward. “We didn’t have it for eight years before,” Henderson said, emphasizing the resilience of the racetrack, as reported by The Sarnia Observer.

OLG’s Commitment to a Smooth Transition

Despite the frustrations voiced by local leaders, OLG has committed to ensuring a smooth transition for both the casino service providers and the local communities. Tony Bitonti, Director of Media Relations at OLG, stated that the closure would be handled with careful coordination to minimize disruption. The corporation will continue to provide financial compensation to the municipalities through the end of the 2026-27 fiscal year, ensuring that hosting payments remain at the same level as those for 2025-26.

For the communities impacted, such as Sarnia, which has received significant funding from hosting the slots, the shift represents a loss of a reliable source of income. Since the return of slots in 2020, Sarnia has earned tens of millions in hosting fees, which have funded projects like the Germain Park playground. The loss of these funds, alongside the economic ripple effects from job cuts, creates further uncertainty.

As OSARP concludes in 2026, the gambling landscape in Ontario will evolve, with more focus likely shifting toward permanent casinos and online gaming. The closure of these smaller racetrack-based casinos highlights the changing nature of the industry, with large operators like Gateway Casinos focusing on their larger, more profitable venues, such as the Starlight Casino Point Edward in Sarnia.