Ontario, OLG target over $3B in new gaming investment for Niagara region

The Ontario government and the Ontario Lottery and Gaming Corporation (OLG) have launched a call for investment that they say will bring in over $3 billion in direct gaming investment in the Niagara region.

The provincial government says it will support over $600 million in additional private-sector investment across different components of the province’s Destination Niagara Strategy over the next 20 years. 

It says this expansion will help create over 10,000 construction jobs, establish Ontario’s first competitive land-based gaming market and generate additional taxpayer revenue through entrance fees and private-sector investment.

“New gaming investment will bring exciting attractions and experiences to the region, helping drive tourism, create good-paying jobs and support Niagara’s future as a world-class, year-round destination,” said Zee Hamid, minister of tourism, culture and gaming.

The government says the first phase will invite experienced, world-class gaming operators to express interest in investing in the Niagara market.

It says the new marketplace will initially be open to a maximum of three new operators, with the potential for further expansion after a 10-year fixed term. This is subject to tourism indicators and overall operator performance.

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Under this new framework, Ontario is setting a 9.75 per cent gaming tax for Niagara operators. 

The provincial government says the updated system aims to reduce the burden on operators, focus expansion on top-tier, world-class operators and maintain requirements that protect the public interest. 

The Ontario government says each new operator will be required to make a minimum investment of $1.5 billion. 

Meanwhile, the province will require a $100 million entrance fee from each new casino operator to protect taxpayer dollars.

The province says with increased economic activity, this will offset any provincial revenue loss from changes to MGE’s exclusivity rights under the Niagara Gaming Bundle.

“By enhancing the gaming experience and supporting new investments in hotels, entertainment venues and dining, we are helping create lasting economic benefits while amplifying the great experiences already available at Fallsview and Casino Niagara, giving visitors even more reasons to choose Niagara,” said Duncan Hannay, president and CEO of OLG.

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