The Ontario Lottery and Gaming Corporation just paid more than CA$23 million in non-tax gaming revenue to different communities across the province. The contribution was made to all 24 municipalities that host gambling facilities and it is for the first quarter of 2018. With annual payments of approximately CA$2 billion, the agency provides the largest source of non-tax revenue to the province of Ontario.
Each year, the Ontario Lottery and Gaming Corporation (OLG) gives back millions of dollars to the province and to individual communities through several funds and initiatives. In fact, all OLG proceeds go the province for helping hospitals and educational programs, problem gambling treatment and prevention, charities, and many more. According to the latest news release from OLG late last week, the fourth-quarter non-tax gaming revenue payments for the months of January, February and March, total $23,188,328. These funds were received by 24 communities and represent their share of the gaming revenue generated at their local casinos, racetracks and other gambling venues.
The size of the payment received by each community is determined by an equitable formula from the Municipality Contribution Agreement, which makes the quarterly contributions fair. Logically, the municipalities hosting the largest and most financially successful casinos receive more funds. For instance, the Town of Milton was paid $1,085,387 for hosting OLG Slots at Woodbine Mohawk Park. Data shows that since 1999, Milton has received a little more than $107.9 million in non-tax gaming revenue.
Meanwhile, the municipality of Chatham-Kent received $191,977 for the first quarter of 2018, while since April 2001, it has been paid over $11 million by the OLG. It is home to Gateway Casinos and Entertainmentās gambling venue in Dresden, which is to be relocated to Chatham. The operations of the Dresden Racetrack and OLG Slots will be shifted to a new, larger and modern casino facility at the site of the former Wheels hotel by 2020. The gaming expansion is part of the larger OLG strategy for modernization which aims at providing customers with an improved and diversified service and also, at giving more money to the province.
City Budgets See Nice Shares of the Gaming Revenue
Along with Milton and Chatham-Kent, another 22 communities have received payments from the OLG. The funds going to the City of Sault Ste. Marie coffers total $348,965 and it is expected to rise well above $1 million by the end of the fiscal year, ending March 31, 2019. Since 1999, the city has received more than $28.4 million in non-tax gaming revenue for hosting Gateway Casinos ā Sault Ste. Marie.
Cavan Monaghan Township was paid $679,173 as its rightful share of the gaming revenues generated by Shorelines Slots at Kawartha Downs. This is one of the last payments the community receives by OLG, however, as another planned expansion includes the relocation of the gambling operations to Shorelines Casino Peterborough. Since the Slots Parlour opened at Kawartha Downs in 1999, the township has received $58.4 million from the Ontario Lottery and Gaming Corporation.
The City of Belville saw a rapid increase in the share of revenue it gets from its relatively new Shorelines Casino. This is the fifth payment for the city and it is almost $735,000, up $200,000 compared to the payment for the first quarter of 2017. During its first fiscal year, the casino has provided Belville with more than $3.5 million in non-tax gaming revenue. The money goes to several city reserve funds, depending on the local priorities.
In this case, 65 per cent of the money goes to infrastructure maintenance, while 10 per cent of the funds are allocated for economic development. Each of the following ā land acquisition, social infrastructure, disaster mitigation, replacement of equipment and vehicles, and the general contingency fund, also get 5 per cent f the money.
