Province's New Hosting Fee Formula

Published: May 21, 2013 12:04 pm EDT

Ontario's Ministry of Finance has released the updated hosting-fee formula for municipalities that play host to an Ontario Lottery and Gaming Corp. gaming facility.

A release from the ministry states that the new formula will provide more money for host municipalities and will be fair and consistent for all municipalities across the province.

Under the new formula, host municipalities will receive:

  • 5.25 per cent on the first $65 million of slot revenue
  • 3.0 per cent on the next $135 million of slot revenue
  • 2.5 per cent on the next $300 million of slot revenue
  • 0.5 per cent on slot revenue above $500 million
  • 4.0 per cent on table game revenue

The release goes on to state that the Cities of Niagara Falls and Windsor as hosts of resort casinos, which have until now been receiving fixed fees plus payments in lieu of property tax under agreements, will now also be compensated under the new formula.

Based on the new formula and implementing OLG's modernization plan, OLG would expect to provide over $50 million more annually to host municipalities by 2017-18. This is part of the Ontario government's commitment to the OLG's modernization while providing fairness throughout the entire province.

To view the ministry's release, click here.