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New hosting fee renews OLG’s support of cities and towns

OLG continues to support local economies through a new and equitable formula to determine what a municipality will receive for hosting an OLG gaming facility. The new formula will provide more money for all host municipalities and be the same across the province.  The new MCA formula will be the same as the previous formula, with the addition of 4% on table game revenue.  The new MCA formula, host 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
  • 4.0% on table game revenue. 
So, let’s say a facility generates $100 million in revenue ($65 million from slots and $35 million from table games). Under the new formula, the host municipality would receive $4.8 million in hosting fees. The calculation of the fee breaks down like this: 

Type of Revenue

Amount

Percentage

Total
Slots

$65 million

5.25%

$3.4 million
Table Games

$35 million

4.00%

$1.4 million
      Grand Total:

$4.8million
 In addition to hosting fees, OLG’s current and future host communities benefit from local job creation, economic development, capital investments and property tax revenue.  Read the full announcement.