Loto-Québec is abandoning its plan to move the Montreal casino to Peel Basin, in the heart of some of Montreal's poorest neighbourhoods, because of a decision by Cirque du Soleil to pull out of the project.
Cirque du Soleil announced Friday it's withdrawing because of the uncertainty associated with the plan.
Loto-Québec and the Cirque du Soleil wanted to build a $1-billion entertainment complex and casino for the Peel Basin.
The project, announced last June, included plans for a 300-room hotel, a 2,500-seat performance hall, a convention centre and a shopping mall. The plan also required the relocation of the Casino de Montréal from Île-Notre-Dame to the Peel Basin.
However, the plan needed the approval of municipal and provincial governments.
On Thursday, the man who heads an intergovernmental committee examining the plan said it's too early for the Quebec government to decide if the casino can be moved to the Peel Basin area.
Guy Coulombe told reporters: "We think that the social problem is real. This is a neighbourhood in Montreal which has a lot of problems, social problems, unemployment and things like that. We agree that there's a risk there to be more a problem than a solution."
He recommended the gaming authority pay $300,000 to the southwest borough council so it could create a group that will discuss solutions to local social problems.
Quebec Finance Minister Michel Audet agreed with Coulombe, that Loto-Qu¿bec has to finish its work before the government will consider the project.
It appears these kinds of delays were too much for Cirque du Soleil.
In a news release, Cirque's president and CEO, Daniel Lamarre, said, "We cannot live with uncertainty for almost two years, not knowing if there will be a project at all down the road.
"We must protect the interests of our company and employees, as well as carry on with our development strategy."