North Bay receives $431K for hosting casino
$5,000 Welcome Bonus
Since Cascades Casino opened in March 2022, North Bay has received $2,365,536. Where is that money now?
The Ontario Lottery and Gaming Corporation (OLG) is announcing its second quarter (July 1–Sept. 30) payment totalling $431,413 to the City of North Bay for hosting Cascades Casino North Bay.
So far, during OLG’s fiscal year (April 1, 2023, to March 31, 2024), North Bay has received $749,380. Since the gaming site opened in March 2022, North Bay has received $2,365,536.
Where, taxpayers often wonder when these Municipality Contribution Agreement announcements are made, is that money going?
"The casino hosting funds are being held in reserve," advises Gord Young, the City of North Bay's communications officer. He adds none of the nearly $2.4 million collected has been spent.
"A policy has not yet been formalized and is being developed as part of the long-term financial policy review now underway," Young continues. "A policy recommendation for how the funds will be utilized is expected to be brought before Council at the end of November."
These payments to host communities are based on a formula consistently applied across all gaming sites in Ontario using a graduated scale of gaming revenue at the hosted site.
“OLG continues to be a proud partner in hosting gaming communities,” says Minister of Finance Peter Bethlenfalvy. “Municipality Contribution Agreement payments help these municipalities fund priorities such as community infrastructure, parks and recreation and local health care facilities, benefiting families and local residents.”
The strategy was not embraced by Coun. Gary Gardiner, who preferred to tackle some of the local societal issues with the casino windfall.
"Early in our four-year term in a day-long brainstorming/planning session this Council's collective top three priorities were community safety and well-being first, downtown revitalization second and an arena facility third," Gardiner said after that meeting. "Nowhere in this budget are there any extra funds set aside for our two top priorities.
"I was hoping OLG funds would be the appropriate source. We don't know what sort of programs and what the corresponding budgets for our two top issues would look like but it seems to me this is no longer a post-election concern. I believe we have a short window to address these issues and I am not sure how we do that with no budget."
If some of the money is used for a "transformational project," such as a new community and recreation centre, the plan was for the balance of the funds to be distributed to user groups through an agreement with a community partner.
Recent discussions have been leaning toward using all of the casino revenue for one transformational project.
OLG says it is proud to share proceeds of casino gaming with local communities, contributing to economic recovery, infrastructure development and job creation. Payments to host communities are part of OLG’s commitment to Ontario — 100 per cent of OLG’s profits are reinvested in the province.
Over the past eight years, casino service providers have invested more than $2 billion in private-sector capital across the province. Since 2017, these investments have led to the development and opening of seven new casinos, one planned development and additional gaming expansions and non-gaming amenities.
OLG makes payments to host communities under the agreements, using a prescribed formula consistently applied across all sites in Ontario that is based on a graduated scale of gaming revenue at the hosted site or sites. North Bay receives 5.25 per cent of the proceeds of casino gaming on the first $65 million of slot revenue, three per cent on the next $135 million, 2.5 per cent on the next $300 million of slot revenue, and 0.5 per cent on slot revenue above $500 million, as well as four per cent of table game revenue.
Since 1994, host communities have received more than $2 billion in non-tax gaming revenue.
