Casino report says job losses, drop in payments to Centre Wellington on horizon
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An internal report for the owner of Elements Casino Grand River predicts a financial impact from a shift to internet gambling
ELORA – While the province works towards launching its regulated internet gaming market, an internal report prepared for Great Canadian Gaming Corp. (GCGC) is projecting revenue and job losses from the change.
GCGC owns 25 gaming properties across Canada, including Elements Casino Grand River in Elora.
An independent report by HLT Advisory Inc. for GCGC examined the potential impact to land-based casinos if the province decides to implement an open license e-gaming model — which was announced in July 2021 under the name iGaming Ontario.
An open license e-gaming model would mean there are no limits on the number of licenses granted and would permit gaming activity via the internet to all residents of Ontario.
Based on data from historic market performance of e-gaming in the UK — the largest e-gaming market that operates under an open license model — and the state of e-gaming in other global markets, the report predicts spending will shift to internet gaming rather than at traditional casinos.
The report states that in turn, the effects will be felt at casinos, including at Elements Casino Grand River.
In Elora, the report estimates a loss of about 33 full-time jobs over five years. This report estimates there are 118 full-time equivalency positions currently at the casino.
Similarly, payments made to the Township of Centre Wellington for being a host municipality are expected to drop by $4.2 million over the same five years with estimates of $800,000 to $900,000 less each year.
In Centre Wellington, this revenue is allocated to capital projects in the year following the payment.
With casino profits taxed by the province at 55 per cent, the report also estimates the province will lose out on $2.8 billion over five years. This is based on a scenario assuming regulated online gambling sites will have a 20 per cent tax rate.
The Ford government has not announced what percentage they will take from these sites.
GCGC CEO Tony Rodio said in an emailed statement he is very concerned with the findings of job and revenue losses in the report.
“This is particularly relevant now, given the severe impact the COVID-19 pandemic has had on the land-based gaming industry,” Rodio said.
“In the US, states that have rolled out a legalized iGaming framework have not yet seen casino revenue recover to pre-COVID levels. While we support iGaming in principle, the Ontario government needs to take the time to get this right.”
Elements Casino Grand River currently has 500 slot machines and has expanded to some electronic roulette with electronic blackjack and craps expected in the coming months.
The casino is expected to reopen under restricted operating conditions on Jan. 31.
