Call for Investment will attract more than $3 billion in direct gaming investment and create thousands of jobs as part of the Destination Niagara Strategy
The Ontario government is looking to establish a competitive land-based gaming market in the Niagara Region, which will initially be open to a maximum of three new operators.
The provincial government and the Ontario Lottery and Gaming Corporation (OLG) have launched a Call for Investment that will enable more than CA$3 billion in direct gaming investment in the Niagara Region and help create over 10,000 construction jobs.
“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 first phase will invite experienced, world-class gaming operators to express interest in investing in the Niagara market, with shortlisted proponents advancing to a competitive process to submit detailed proposals for new integrated casino developments.
The new marketplace will initially be open to a maximum of three new operators, with the potential for further expansion after a 10-year fixed term, subject to market maturity indicators, including tourism indicators and overall operator performance.
Ontario will introduce a gaming tax rate of 9.75 per cent for Niagara gaming operators and establish a new gaming framework.
Each new operator will be required to make a minimum investment of $1.5 billion, with the province requiring a $100 million entrance fee from each new casino operator to offset any provincial revenue loss from changes to MGE Niagara Entertainment’s exclusivity rights under the Niagara Gaming Bundle.
“OLG is proud to work with our partners and the Ontario government to strengthen Niagara’s position as one of Canada’s premier tourist destinations,” said Duncan Hannay, president and CEO, OLG. “By enhancing the gaming experience and supporting new investments in hotels, entertainment venues and dining, we are helping create lasting economic benefits while amplifying the great experiences already available at Fallsview and Casino Niagara, giving visitors even more reasons to choose Niagara.”
The Call for Investment is part of the Destination Niagara Strategy, the province’s plan to build Niagara into a world-class tourism destination by doubling tourism to more than 25 million annual visitors, generating $3 billion annually for Ontario’s GDP and creating approximately 46,500 permanent jobs.
Earlier this year, an agreement was reached between OLG and its Niagara-area service provider, MGE, to suspend MGE’s current exclusivity rights to the Niagara land-based gaming and allow additional casino operators to enter the market.
Since 1996, OLG has provided more than $256 million to the City of Niagara Falls for hosting Fallsview Casino Resort and Casino Niagara.
Casino operators interested in the opportunity to enter Niagara’s gaming market must respond to phase one of the procurement by 3 December.