Despite the casino crisis across Ontario this week, the Ontario Lottery and Gaming Corporation is sending out its quarterly payments to host communities. The City of Windsor is one of them and the municipality has received an allocation worth just over CA$2 million for hosting Caesars Windsor Casino in the fourth quarter ending on March 31, 2023.
Via the Municipal Contribution Agreement, the OLG is able to share a portion of its gambling profits with communities that host casinos across the province. These payments are based on a formula applied consistently across all sites in Ontario using a graduated scale of gaming revenue at each location. Since 1994, OLG has provided over CA$2 billion in non-tax revenue.
Windsor Gets Its Q4 Cut
This week, the Crown corporation which is responsible for overseeing gambling and lottery in Ontario, reported that it sent 29 host communities a total of CA$28,753,394 in casino allocations. The City of Windsor which is the home of Caesars Windsor Casino received a payment of CA$2,099,912 for the three months ending on March 31, 2023, or Q4.
For the entirety of OLG’s fiscal year from April 1, 2022, through March 31, 2023, the city pocketed around CA$9.4 million in non-tax gambling revenue for hosting the casino. And since its launch in May 1994, the region has been awarded a grand total of CA$82 million. The money comes in handy as it is reinvested into the city’s economy and capital projects.
According to Peter Bethlenfalvy, the finance minister of Ontario, the payments made by OLG’s municipal contribution agreement are contributing to the development of robust communities where individuals and families can experience a superior standard of living. Bethlenfalvy stated that these funds are aiding the provision of local initiatives and essential infrastructure, thereby significantly benefiting municipalities hosting gaming facilities.
Seeking Next Operator
Currently, the Windsor casino is operated by Caesars Entertainment, but recently, the OLG launched a Request for Pre-Qualification. This way the Crown agency will be able to hear from third-party companies which are interested in taking over as an operator of the day-to-day operations at the property. The current operator contract with Caesars is set to expire sometime in 2025.
The Request for Pre-Qualification is the initial stage of the procurement process of selecting a new operator for the amenity to conduct the daily gaming operations. OLG will be able to prequalify potential proponents based on their previous background operating a casino of this magnitude. Those who advance from the first stage will advance to the Request for Proposal.
At the start of the year, the gaming amenity also debuted retail sports betting via Caesars Sportsbook. The introduction was celebrated by Unifor Local 444 which has been a major proponent of it. According to the union, the new gaming addition would provide 100 to 150 jobs in various positions, such as bartenders, kiosk staff, food services, and more.
Source: Battagello, Dave “City receives $2.1M quarterly payment for hosting casino” O.Canada.com, April 20, 2023