The Ontario Lottery and Gaming Corporation (OLG) has issued first-quarter (April to June, 2013) non-tax gaming revenue payments totalling more than $32 million to 22 municipalities which currently host OLG facilities. To date, host municipalities have received more than $938 million in non-tax gaming revenue.
“Host communities are able to invest in important local programs and infrastructure with revenue from OLG gaming sites,” said Charles Sousa, Minister of Finance. “The modernization of Ontario’s lottery and gaming business will stimulate economic development, create new jobs and continue to support public priorities like health care.”
These are the first payments under a new, equitable formula that determines the fee municipalities receive for hosting an OLG gaming facility as announced by OLG on May 17, 2013. The formula, part of the Municipality Contribution Agreement, will provide more money for host municipalities and is the same across the province.
The payments are based on an escalating scale of slot machine revenue that is consistent across all sites in Ontario.
Under the agreement, municipalities will receive:
• 5.25% on the first $65 million of slot revenue;
• 3.0% on the next $135 million of slot revenue;
• 2.5% on the next $300 million of slot revenue;
• 0.5% on slot revenue above $500 million; and
• the new element, 4.0% on table game revenue.
OLG’s modernization will increase revenue for the province and create some 2,300 net new industry jobs and about 4,000 service sector jobs. It will improve how lottery and gaming is delivered in Ontario and expand OLG’s approach to Responsible Gambling.
In 2013-2014, the province will allocate $115 million in gaming revenue to support charities through the Ontario Trillium Foundation. Every year, the Government of Ontario allocates funding to the province’s problem gambling program for research, treatment and prevention. The amount for 2013-2014 is budgeted at $41 million.
OLG is a provincial agency responsible for province-wide lottery games and gaming facilities. Since 1975, OLG lotteries, Casinos, Slots, and Resort Casinos have generated more than $36 billion for the benefit of the Province of Ontario. Proceeds from OLG’s operations help support Ontario’s hospitals, amateur sport through the QUEST FOR GOLD program, recreational and cultural activities, communities, provincial priority programs such as health care and education, and local and provincial charities.
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