Ontario seeks casino operators for Niagara investment of more than CA$3bn

Ontario's government and the Ontario Lottery and Gaming Corporation (OLG) opened the first phase of an investment process for land-based casino development in the Niagara Region on 28 October, according to a provincial statement. The Call for Investment seeks more than CA$3bn in direct gaming investment and more than CA$600m in additional private-sector investment across components of the province's Destination Niagara Strategy over the next 20 years.

Under the terms, every incoming operator faces a minimum outlay of CA$1.5bn plus a CA$100m entrance fee. Gaming operators in Niagara will be taxed at a rate of 9.75%, the province said. More than 10,000 construction jobs are projected by the government as a result of the expansion.

Interested operators have until 3 December 2026 to respond to the first phase through MERX. Shortlisted applicants will then be invited to submit detailed proposals for integrated casino developments.

At the outset, no more than three additional casino operators can be accommodated in the new marketplace. After a 10-year fixed term, further expansion could follow, depending on market conditions and how operators perform, according to the province's statement.

The process follows an August agreement between OLG and MGE Niagara Entertainment Inc. (MGE), the Mohegan-controlled company that operates Fallsview Casino Resort and Casino Niagara, to suspend MGE's exclusivity rights in the Niagara land-based market. In Ontario, private-sector operators manage land-based casinos under agreements with OLG, which retains responsibility for conducting and managing gaming.

Tourism to the region would be doubled to over 25 million annual visitors under the Destination Niagara Strategy. The plan also targets CA$3bn a year in contributions to Ontario's GDP, 46,500 permanent jobs and support for local businesses, the statement said.

Zee Hamid, Minister of Tourism, Culture and Gaming, said Niagara has "enormous potential for growth" and that the strategy is intended to attract investment and create jobs. Duncan Hannay, president and CEO of OLG, said the corporation is working with partners and the government on new investment in hotels, entertainment venues and dining.