Olg/weg Case Analysis

Prepared for

Michael von Massow

HTM 4190 Industry Consultation

Topic: OLG/WEG Case 1

By

Natalya Solina

0789799

University of Guelph

October 20th, 2016

Table of Contents

Executive summary        

Introduction        

External and Internal Analysis        

Problems and challenges        

Options, solutions, and implementations        

Realistic and non-realistic ideas and how to implement them        

Conclusion        

References        

Executive summary

Mohawk Racetrack destination is a combination of two entertainments: horse races (wagering, race-watching from all around the world, dining experience), and a casino. Woodbine Entertainment Group has recently leased to OLG in order to help the Racetrack to survive. Jim Lawson believes that this partnership will help to bring the horseracing industry to grow back up. (Briggs, 2016)

The main question is whether these two businesses can co-exist and what are the ways to attract more people, especially the younger generation; what are the best options and how to implement them. Woodbine benefits from getting money for the leased area, thus, is interested in OLG to get more revenue, so that they stay together and benefit from each other longer.

In this Case Analysis, alternatives, both for the OLG and WEG, such as transportation to the Racetrack, organization of horse lovers club days and lessons, investment into building more attractions and entertainment are discussed with pointing out their strengths, weaknesses, and implementation.

Introduction

OLG stands for The Ontario Lottery and Gaming Corporation. It is classified as Operational Enterprise Agency of the Province of Ontario. (OLG, 2016)

The Corporation is expected to give gaming amusement in a proficient and socially mindful way that augments financial advantages for the general population of Ontario, related monetary segments, and host communities.

There are four ways OLG accomplishes their business goals: web gaming, land based gaming, for example, casino, charitable games, for example, bingos, and lotteries. (OLG, 2016)  

General information about OLG slots at the Mohawk Racetrack: One must be 19 years old to have an access to the facility. The gaming floor is open 24/7. Because OLG is government regulated, it cannot incent people to gamble through the advertisement: there are specific strict standards and regulations. There are over 900 slot machines, including blackjack and roulette, as well as a private game lounge.

External and Internal Analysis

OLG Mohawk SWOT Analysis

Strengths                 

• Accessible through the web, lottery tickets, over 900 slot machines
• The charge per game starts from 1c up to 5$, fitting into everyone’s budget
• Free of charge non-alcoholic beverages
• On site dining: fast and casual food, bar
• Live entertainment, professional friendly staff
• Loyalty program “Winner’s Circle Rewards”
• Annual revenue – $142 million
• Annual profit – $100 million
• Number of visitors – ~ 1 million

Weaknesses

• Government regulated – thus, limited rights to advertise and market as desired
• Not diverse 55-60+ customer segment
• Not easily reachable location
• Slots are no longer available on the horse track
• Not much variety of games and very digitalized
• Not strong social media presence

Opportunities

• Provide more options in service to potential customers
• Cooperatively with WEG invest into building more entertainment around the area
• Get attention of younger customer segment
• Increase the revenue by attracting more people to the area with advertisement that will pass the standards of OLG and provincial & federal regulations.

Threats

Since OLG is government regulated corporation, there are almost no threats. It is a money cycle.

Mohawk Racetrack SWOT Analysis

 Strengths                 

• Stable 1 million visitors per year
• Unique technologies that allow to provide the most exact results of the race
• Space for keeping the horses overnight, dining areas, rooms to stay overnight for travelers from US
• Opportunity to bet, watch races from other countries and bet on the as well
• No charge for horse housing as long as they race
• Loyalty program
• Able to aggressively advertise

Weaknesses

• Slowdown from November-December to April-May
• Location (a challenge for viewers)
• Not full use of potential of the land

Opportunities

• Offer of more services, such as activities and club days for younger crew
• Offers during non-peak season: dining, events, concerts, etc.
• Collaboration with OLG to build more entertainment around

Threats

• No or little revenue during slow season
• Fail to provide expected service (for examples, cases described by the customers on their Facebook page)
• Decreasing interest in horse race watching and wagering
• Aging customer segment and now new customer

Problems and challenges

• Social Media presence

For example, on their Facebook page https://www.facebook.com/Mohawk-Racetrack-164889090219676/reviews/ no replies on customer’s complains and feedback. Considering that there are over million visitors to Mohawk throughout the year, only 12,000 likes on their Facebook page is not a high enough number (Mohawk Racetrack Facebook page, 2016)