Ontario Lottery and Gaming Corporation (OLG), known for managing casino properties across Ontario, recently made its quarterly revenue-sharing payment of CA$3.39 million to the City of Windsor, home to Caesars Windsor Casino.
The payment for the first quarter of fiscal 2023-2024 is part of a consistent, graduated scale model applied to all gaming sites across the province, demonstrating the Crown corporation’s continued support to host communities via the Municipality Contribution Agreement.
A Windfall for Windsor
The City of Windsor is satisfied with this fiscal boost. Since Caesars Windsor Casino opened in 1994, the city has received a total of CA$ 85.8 million from OLG. In recent years, the city’s coffers have seen a significant increase in revenue.
Ontario’s Finance Minister, Peter Bethlenfalvy, spoke highly of such payments, emphasizing their essential role in underpinning programs, services, and infrastructure development within host communities. He stated, “These financial boosters enable funding for crucial programs and services which will provide a better future for Ontarians.”
Spreading the Wealth
OLG’s Q1 payout wasn’t exclusive to Windsor. Across 29 host communities, the corporation shared over CA$43 million in gambling payments, a testament to its commitment to supporting local economies. Through these payments, OLG reinforces its aim to fuel economic recovery, job creation, and infrastructure development. Moreover, 100% of the Crown Corporation’s profits are reinvested in Ontario, emphasizing its dedication to the province’s well-being.
Since 2017, casino service providers in Ontario have plowed over CA$2 billion in private sector capital into the economy, leading to the birth and growth of seven new casinos, one planned development, and numerous expansions. Since 1994, these efforts have culminated in host communities contributing over CA$ 2 billion in non-tax gaming revenue.
OLG Searches for a New Operator
While the revenue-sharing payments continue to benefit host communities, OLG also has an eye on the future, particularly for the Caesars Windsor Casino.
In April 2023, OLG announced its quest to find the next operator for the Windsor property, marking the start of its Request for Pre-Qualification (RFPQ) process. The current operator, Caesars Entertainment, will see its contract expire in 2025, necessitating this strategic move.
The Crown agency reported the successful conclusion of the RFPQ phase nearly two months later. This marked the first step in selecting a service provider adept enough to manage the Windsor property. Currently, the Crown Corporation is reviewing applications from the RFPQ process, with successful candidates advancing to the second stage: the Request for Proposal.
For Ontario’s online casino players and host communities alike, these developments serve as a reminder of the intricate balance between entertainment, economic stability, and community growth. Whether it’s the allocation of revenue-sharing payments or the search for a new operator, the OLG is steering the ship with the province’s best interests at heart.
A Win-Win Arrangement
The ongoing financial arrangement between the City of Windsor and OLG isn’t a one-off event but part of a longstanding tradition. With a total of CA$85,836,602 paid to the city since May 1994, OLG’s support for Windsor extends far beyond the bricks and mortar of Caesars Windsor.
The payment model employed by OLG reflects an equitable approach, with all gaming sites in Ontario contributing to their respective host communities based on a graduated scale. This formula, consistently applied across the province, ensures that the benefits of casino operations are enjoyed by all host communities, not just a select few.
The Circle of Benefit
“Payments to host communities are part of the gaming regulator’s commitment to Ontario — 100 percent of OLG’s profits are reinvested in the province,” underlining the corporation’s commitment to comprehensive provincial development.
As Ontario’s Minister of Finance, Peter Bethlenfalvy, indicates, these revenues support diverse programs, services, and infrastructural initiatives in host communities. The fruitful alliance between OLG and the host communities exemplifies a sustainable model where the fun of gaming and economic prosperity coexist.