Great Canadian Gaming Corp., which operates six casinos and a thoroughbred racetrack, has reached a deal to acquire Orangeville Raceway Ltd., operator of two standardbred tracks in British Columbia, for at least $40 million.

Orangeville operates Fraser Downs Racetrack & Casino in Surrey and Sandown Park in North Saanich, Vancouver Island.

Richmond-based Great Canadian (TSX:GCD), which already owns Hastings Racecourse in Vancouver, said Monday it will pay $40 million plus a share of gambling and racing revenue for up to four years.

The acquisition is still subject to various regulatory and industry approvals, but it expected to close by Jan. 31.

"As a result of these acquisitions, the corporation will be the largest thoroughbred and standardbred racing operator in British Columbia and will be able to operate year-round horse racing and related activities," Great Canadian said in a release.

Fraser Downs Racetrack & Casino currently offers live standardbred horse racing nine months of the year. The casino operates all year and features a sports bar and 420 gambling machines, including slots.

Sandown Park has been operating for about 50 years. It has 10 live race days per year and features simulcast off-track wagering year-round. In a Nov. 6 referendum, 56 per cent of North Saanich voters supported the installation of slot machines at Sandown.

North Saanich Council then approved the installation of up to 200 slot machines at the racetrack.

Great Canadian Gaming also announced Monday a $62.25-million offering of 1.5 million common shares at $41.50 apiece in a bought deal with a syndicate of underwriters led by Sprott Securities Inc.

In addition, the underwriters will have the option to buy up to 500,000 more shares from principal shareholders, including a company controlled by Ross McLeod, chairman and CEO. McLeod controls about 27 per cent of the firm's outstanding common shares.

Great Canadian Gaming, with over 3,000 employees, has six operating casinos, a thoroughbred racecourse, several licensed restaurants, a marina operation and a community gambling centre - bingo and slots - in British Columbia.

Through Great American Gaming Corp., it has four gambling and restaurant/entertainment sites in Washington state.