Many countries around the globe are actively pursuing the legalization of gambling, hoping that the industry can alleviate the growing budgetary pressure. Canada is among the countries, which managed to benefit financially from gambling and pump a lot of cash into its economy. The weapon that the casino industry uses to attract municipalities to host a casino is the financial benefits that the gaming industry can contribute to foster local economic developments.
According to the latest news, Windsor received C$2,288,389 from the Ontario Lottery and Gaming Corporation (OLG). The quarterly payment is made because Windsor is among the Canadian communities that host a casino. The announcement was made by Ontario Finance Minister Charles Sousa in a media release. Sousa specified that OLG revenues support public services such as healthcare and education.
Since May 1994, Windsor has received a total of more than $46.3 million in non-tax gaming revenue for hosting Caesars Windsor. It is important to mention that OLG provides the Ontario government with its largest source of non-tax revenue. That sense, casino gambling provides substantial economic benefits to Ontarioās municipalities.
An equitable formula in the Municipality Contribution Agreement is used to calculate the annual hosting payment. The formula is an escalating scale of gaming revenue that is valid across all sites in Ontario. According to reliable sources, the Ontario government reaps approximately C$2 billion every year from the gambling industry. During the first quarter of 2017, Windsor received more than C$3.5 million for hosting Caesars Windsor. The second-quarter payment to Windsor amounts to C$2,477,896. The latest payment is the third-quarter non-tax gaming revenue payment.
Gambling Supports Local Economic Development
Caesars Windsor is one of the four gambling facilities located in the DetroitāWindsor area. It is publicly owned by the OLG, but it is operated by the American gambling conglomerate Caesars Entertainment Corporation. In May 1994, the casino opened its doors for the first time in a temporary location. Since then, the casino has turned into a preferred spot for the casino gambling enthusiasts. Only a few days ago, Caesars Windsor made the headlines after being named Tourism Industry Association of Ontarioās Employer of the Year with more than 2,500 employees.
Last year, Caesars Windsor reported that its revenues went up to stimulate the local economy. Needless to say, the casino is one of the largest employers in the area. In that sense, Caesars Windsor lowers the unemployment rate and stirs economic activity in the region. Another important factor is that the gambling industry also boosts the surge of tourists, which stimulates struggling local small- and medium-sized businesses.
