Since the opening of Gateway's Cascades Casino in March, the Ontario Lottery and Gaming Corporation has been remitting quarterly payments to the City of North Bay for its share of casino revenues, in accordance with its municipality contribution agreement.
As of October, a total of $921,669 had been received by the City for the period of March to September.
See related: North Bay hits jackpot with new Cascades Casino
See also: OLG hands out big cheque to City of North Bay for new casino
According to the City of North Bay’s year-end financial projections for the period ending September 30, it is "recommended that these funds be transferred to a reserve through the year-end variance report. The year-end financial projection has been prepared on this basis. A policy regarding the allocation and use of casino revenue will be brought forward to Council in the new year for approval."
Council approved those year-end projections during Tuesday's regular meeting. By the time that policy is discussed and agreed upon by city council, the next quarterly payment will have been received, almost assuredly bringing the revenue received from OLG since March to a total in excess of $1 million.
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.
See: Revenue-sharing agreement allows OLG to terminate contract at any time
In Greater Sudbury, the annual contributions from OLG for the casino are placed in the city’s general revenue accounts and have been invested into capital projects such as road improvements, roof replacements, upgrades at landfill sites, and the purchase of one pumper fire engine.
How would you like to see the money used? Take our poll attached below to have your say.
Al McDonald, the mayor at the time the agreement was signed said then the municipality was anticipating receiving between $1 million and $2 million every year in shared casino revenue. "What we’re going to do is put the money into a reserve and the next council will set the policy on how they want to invest the money moving forward."
Coun. Tanya Vrebosch added, “Quarterly payments are made to the municipality 21 days after the end of each operating year quarter. We’re expected to hold at least one community event each year to highlight the operator’s annual contributions to the municipality and its allocation for municipal purposes.”
OLG is classified as an Operational Enterprise Agency of the Province of Ontario and is intended to provide gaming entertainment in an efficient and socially responsible manner that maximizes economic benefits for the people of Ontario, related economic sectors and host communities.
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