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New Hosting Fee Formula To Benefit All Host Municipalities

News Release

New Hosting Fee Formula To Benefit All Host Municipalities

Ontario Government Provides Fair Increases for all of Ontario

Ministry of Finance

The Ontario government today shared a new and equitable formula to determine the fee municipalities receive for hosting an OLG gaming facility. 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 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.

Quick Facts

  • OLG currently provides nearly $2 billion annually to the Ontario government to help fund provincial priorities. Modernization will enable OLG to increase that contribution to more than $3 billion.
  • All host municipalities must sign a new MCA as a legal requirement before receiving hosting payments under the new formula.
  • Casino Rama’s compensation will remain the same due to an earlier Ontario-First Nations agreement.


Charles Sousa

“Modernization is about more than benefiting one community or one facility; it’s about benefiting all Ontarians by providing more money for hospitals and community infrastructure projects across the province.”

Charles Sousa

Minister of Finance

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