Kawartha Downs will continue operation under new ownership, as it was confirmed recently. The racetrack’s owner inked a deal with Romspen Investments Corporation that is going to guarantee the future of the renowned racing location. It was also confirmed that the gambling venue overseen by Great Canadian Gaming would also continue welcoming casino patrons after its revival.
Ever since the beginning of November, Kawartha Downs has been looking for its new owner that is going to bring a breath of fresh air to the location and iron out all debts generated. May 2017 saw the Ontario Superior Court of Justice issue special order since the owner at the time, Harvey (Skip) Ambrose had managed to amass a substantial debt.
Romspen Investments Buys Kawartha Downs
This prompted the sale that includes the racetrack, casino venue with slot machines, as well as the parcel of land amounting to some 115 acres. The horse racing hotspot is located on Country Road 28 in Fraserville, and the parcel of land included in the purchase deal is the very one that Kawartha Downs rises on.
Back at the end of 2018, it was confirmed that the value of this location is CA$20 million. Now that the purchase is fact, neither of the parties involved is planning to reveal information about the financial part of the arrangement, as this is a private matter. The sale was prompted mainly because of Skip Ambrose’s swelling debt.
He oversaw 16 businesses, among which Kawartha Downs and their operation managed to amass a debt of CA$97.3 million. Romspen Investments Corp was eligible for the said amount that managed to increase even further past May 2017. This is when the receivership period came to an end. Over the past two years, no purchasers came forward to bag this location, leading to the ultimate purchase by the mortgage lender.
Shorelines Slots Continues Operation
Back at the end of 2018, the race course wanted to guarantee future operation of Shorelines Slots Kawartha Downs that was closed for renovation at the time and was in limbo. Mid-October, Shorelines Casino Peterborough launched operation and there were talks that this could be the end of the gaming location at Kawartha Downs. Speculations were fueled by the renovation work that took longer than the initially announced couple of weeks.
Then mid-December the racetrack slots location relaunched operation with a new interior and with some 150 slot devices available on site. A cheerful crowd was eager to see the new venue while employees had a sigh of relief that they would not have to look for a new job in the middle of winter. Some 50 individuals unionized with the Service Employees International Union Local 2 inked renewed three-year contracts for operation, guaranteeing that casino action will continue.
Gambling operation is important for the racetrack, as it is going to guarantee future support from Ontario Racing. As a result of the agreement between the racing location and the new force in the horse racing field, the next two years will bring funding for live races and operation. If the performance has met and exceeded expectations, Great Canadian Gaming will have the opportunity to state its position next year.
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