Ontario Lottery and Gaming Corp. Embroiled in Scandal Over Foreign-Made Mercedes-Benz Casino Prizes

Strategic Insights -

Infuriated by a "crappy decision" to purchase foreign-made Mercedes-Benz cars for a casino promotion, Infrastructure Minister George Smitherman has blasted the Ontario Lottery and Gaming Corp. (OLG) for a "huge lapse in judgment" that prioritized luxury vehicles over Canadian jobs. The purchase of 22 Mexican- and German-made B200 hatchbacks, worth a total of $674,000, has sparked outrage from the government and opposition, highlighting the OLG's questionable decision-making and lack of commitment to supporting Ontario's economy.

Key Takeaways:

  • The Ontario Lottery and Gaming Corp. purchased 22 foreign-made Mercedes-Benz cars, worth $674,000 (Canadian), for a casino promotion, sparking outrage from the government and opposition.
  • Infrastructure Minister George Smitherman expressed his "disappointment, disillusionment, and anger" over the decision, calling it a "huge mistake" that prioritized luxury vehicles over Canadian jobs.
  • The OLG CEO, Kelly McDougald, has Smitherman's confidence, but the minister made it clear that she must improve her team's performance.
  • The purchase of foreign-made cars is part of an ongoing trend of controversy surrounding the OLG, including a recent $198 million prize giveaway to insiders.
  • The "License To Win" promotion will continue through the end of March, despite the agency's apology and admission that featuring foreign-made vehicles was a mistake.
  • Independent auto industry analyst Dennis DesRosiers pointed out that Mercedes-Benz uses Canadian steel in its manufacturing process, contradicting the government's claim that the purchase undermined Canadian jobs.
  • NDP Leader Andrea Horwath has expressed her party's support for a "Buy Ontario" procurement policy, arguing that the OLG should have sourced vehicles in Ontario.

Statistics:

  • The total value of the Porsche cars purchased by the OLG: $674,000
  • Number of foreign-made Mercedes-Benz cars purchased: 22
  • Retail value of each car: $34,400
  • Price paid by OLG per car, including tax: $29,500
  • Total value of lottery prizes given to insiders between 1996 and 2023: $198 million

Sources:

  • Canadian Press
  • Hamilton Spectator
  • The Globe and Mail
  • OLG statement on the "License To Win" promotion
  • Interview with Ontario Infrastructure Minister George Smitherman