Casino News

Ontario Communities Receive CA$36.9 Million from OLG

Communities hosting casinos and other gambling facilities across the Province of Ontario have received nice cheques by the Ontario Gaming and Lottery Corporation (OLG). On Friday, the Crown Corporation issued the second quarter non-tax gaming revenue payments that totalled nearly CA$37 million.

The latest payments cover the costs for hosting gaming facilities in the period from July to September 2018. According to the official news release by OLG, a total of 24 communities have been given exactly $36,985,656. These are non-tax gaming revenue payments estimated in accordance with an equitable formula, which determines how cities and municipalities are compensated for hosting casinos and gaming facilities owned by the OLG.

In July, the Crown Corporation, which conducts all gambling operations on the territory of the province, paid $37.9 million to host communities for the first quarter of the fiscal 2018-2019 year. The payments in the second quarter are, therefore, slightly down from the previous period but still remain solid, contributing to a total of $1.5 billion in non-tax gaming revenue received by communities up to date.

The OLG generates more than $4 billion in overall economic activity, according to Vic Fedeli, Ontario’s Minister of Finance. Every year, the Corporation returns more than $2 billion in net profit to the Province, with the latest figures being approximately $2.36 billion. The support for local communities, on the other hand, was around $1.68 billion, while another $58.9 million was paid as Corporate Responsibility. The $4 billion in economic activity includes goods and services purchased from businesses, Fedeli explains. OLG is the biggest source of non-tax revenue for the Ontario Government, making annual payments of over $2 billion.

Windsor Receives $3.5 Million for Hosting Caesars Windsor

In the fiscal year that started in April 2018, the 24 host communities have been handed over $74,854,628. Based on a graduated scale of gaming revenue, the payments vary significantly across cities as some casinos are more profitable than others. The municipality of Chatham-Kent has, for example, received $216,565 for hosting Gateway Casino Dresden, getting nearly half a million dollars since the beginning of the fiscal year. The municipality has earned more than $11 million in gaming revenue in the past 14 years.

Gateway Casinos Hanover brought a quarterly cheque of $337,773 to the town of Hanover. This contributes to total payments of $658,559 in the 2018-2019 fiscal year and to a gaming revenue of $17.1 million since 2001, according to the OLG. For the July – September 2018 period, Point Edward collected nearly $656,000 for hosting the Gateway Casino, while the total revenue since April 2000 amounts to a little over $44 million. Meanwhile, the City of Sault Ste. Marie took $403,414 in non-tax gaming revenue from the OLG for hosting Gateway Casinos Sault Ste. Marie. The payments for the current fiscal year are $791,427, while since 1999 they total $29.2 million.

One of the biggest cheques, however, was given to the City of Windsor for hosting the largest casino resort in the Province, Caesars Windsor. For the second quarter, the OLG paid the city almost $3.5 million in non-tax gaming revenue. Since the beginning of the fiscal year in April, the Corporation has paid $4.6 million to Windsor, which means the payment for the first three months was only $1.1 million.

As we all remember, the 60-day labour strike closed the casino from April 6 until June 7. Caesars Windsor management did not comment when asked what revenue was lost during that time but it is clear that the temporary closure took its toll on the expected earnings.