Ontario seeks Niagara Casino investments
Up to three new operators would pay a C$100m entrance fee and a 9.75 per cent gaming tax, ending MGE’s exclusivity in the region.
Key takeaways:
- The Ontario government and OLG launched a Call for Investment to attract new casino operators to the Niagara Region, opening the market to up to three new entrants initially.
- Each successful operator must invest at least C$1.5bn and pay a C$100m entrance fee.
- Ontario will introduce a 9.75 per cent gaming tax rate for Niagara operators under a new regulatory framework.
Canada.- The Ontario government and the Ontario Lottery and Gaming Corporation (OLG) have launched a Call for Investment to attract new casino operators to the Niagara Region. The plan is to open the market to up to three new entrants initially.
The initiative forms part of the province’s Destination Niagara Strategy and is expected to attract more than C$3bn in direct gaming investment, alongside over C$600m in additional private-sector investment across the wider tourism plan over 20 years.
Each successful operator will be required to invest at least C$1.5bn and pay a C$100m market entrance fee. Ontario will introduce a 9.75 per cent gaming tax rate for Niagara operators. The government estimates that the expansion could generate more than 10,000 construction jobs and additional public revenue.
The first phase will invite established gaming companies to register their interest in entering Niagara. Shortlisted applicants will then compete by submitting detailed proposals for new integrated casino developments, accommodating a maximum of three new operators. Further expansion could be considered after a fixed 10-year term, depending on indicators such as tourism growth and operator performance.
“Niagara has enormous potential for growth and our Destination Niagara Strategy is unlocking new opportunities to attract investment, create jobs and strengthen the region’s tourism economy,” said Zee Hamid, Minister of Tourism, Culture and Gaming. “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.”
The province said the entrance fees and additional economic activity would offset any loss of revenue resulting from changes to MGE’s exclusivity rights under the Niagara Gaming Bundle.
An agreement to end the exclusive rights currently held by MGE Niagara Entertainment Inc was part of Premier Doug Ford’s Destination Niagara initiative announced in December. Plans also include a theme park and an expansion of the Niagara Falls airport.
Frequently asked questions (FAQs)
- How many new casinos could open in Niagara? Up to three new operators initially. Further expansion could be considered after a fixed 10-year term, depending on tourism growth and operator performance.
- What will operators have to pay? At least C$1.5bn in investment and a C$100m entrance fee each, and a 9.75 per cent gaming tax rate on Niagara operations.
- What happens to MGE’s exclusivity? The province says entrance fees and added economic activity would offset any revenue lost from changes to MGE’s exclusivity rights under the Niagara Gaming Bundle.
