Casino operator bets on Chatham

Gamblers can play table games, slots within an hour of Caesars

The new private operator running legal gambling in much of Southwestern Ontario is moving a casino to Chatham, just off the Highway 401 and only an hour away from the giant Caesars casino in Windsor.

But while some might view the move to Chatham of the slots operation at the Dresden Raceway as a challenge to Caesars, a spokesperson for Gateway Casinos and Entertainment Ltd. predicts a peaceful co-existence. “People who enjoy gaming tend to travel around and visit different facilities,” Rob Mitchell said Thursday after Gateway announced the move.

“We think we’ll be quite competitive. Chatham is a good market for us. It’s a good region.”

After months of speculation, Gateway unveiled its plans to build a new Cascades-branded casino at the former Wheels Inn site in Chatham.

The casino, which still needs government approval and completion of a deal to buy the land from Brad-Lea Meadows Ltd. of Chatham, would feature a mix of slots and table games.

Details of the size and scope of the casino won’t be announced for weeks yet, but construction is expected to begin in the spring with the needed approvals.

“It’s going to be great for the community, good for employment,” Chatham-Kent Mayor Randy Hope said.

“It’s been a longtime coming, period.

British Columbia-based Gateway took over gaming sites formerly operated by the province’s gambling arm, the Ontario Lottery and Gaming Corp. (OLG) in much of Southwestern Ontario, including in London, Point Edward, Dresden and Hanover.

In London, where it leases space at Western Fair District for $6 million a year, Gateway — with plans for a $140-million hotel and gambling complex — has been locked in talks for months for a better deal. An official with the union representing casino workers said it learned in November a large casino was likely coming to Chatham, but the union isn’t worried about that affecting business or jobs in Windsor.

“The OLG really has zoned coverage and it’s accounted for in all that,” said James Stewart, president of Unifor Local 444, which represents about 250 workers at the Dresden and Point Edward casinos.

Stewart said Caesars draws some people from the Chatham area and farther up the 401, but it doesn’t tend to be a major customer base. “There’s always an attraction, especially around concerts and other things that are held at the ( Windsor) casino,” he said. “That’s what brings them in. Most of our patrons come from the States. “Once you get into London, you’ve got Casino Rama north, and then you’ve got us as a major player south. But I think a lot of people come just for the Caesars brand.” Gateway officials would not predict when the new casino might open, but said the Dresden Slots will remain open until 2020. “It all depends on construction and how smoothly that goes,” Mitchell said. “It’s planned to coincide that we would be opening at approximately the same time that our (Dresden) lease would expire.” A casino at the Chatham site would revive its use as an entertainment destination. For years, it was the site of the Wheels Inn complex that drew many visitors to the area.

“We are pleased that Gateway chose our site for the new casino,” Brad-Lea Meadows president Dean Bradley said in a statement, adding it would be good to put the vacant property to better use. “This is a good news story allround for our community.” Gateway ’s Ontario incursion began in late 2016, when the province selected it as the service provider for the OLG’s casino facilities in northern and southwestern Ontario. The company, which operates a

There’s always an attraction, especially around concerts and other things that are held at the (Windsor) casino . ... Most of our patrons come from the States.

dozen casinos in B.C. and Alberta, assumed operations of the region’s facilities in May 2017.