Confusion Over Toronto Casino Hosting Fees Promise
The Premier of Ontario, Kathleen Wynne has promised that she would not approve special terms for Toronto to receive if a proposed casino was given the green light by city councilors.
Last week, the Chief Executive Officer of Ontario Lottery and Gaming, Rod Phillips, caused confusion when he said that Toronto would receive a higher hosting fee than other locations if a casino was constructed there, since a downtown Toronto casino would be a more ambitious venture.
Phillips promised fees based on the amount of capital invested in the proposed gambling and entertainment resort, and how much the community benefited from its presence. This was a move away from the policy that municipalities usually receive fees based on a percentage of net revenues.
OLG Clarifies Hosting Fees Policy
Ontario Lottery and Gaming came under fire from Phillips' remarks, especially after the mayors of Ottawa, Windsor and Niagara Falls complained about this clear difference in treatment.
As such, the OLG issued a statement following Phillips' remarks which read: "There is no change of policy and no special deal offered to anyone. OLG has taken a consistent approach to municipal hosting fees since plans to expand the province's casino operations launched a year ago."
The OLG uses a formula based on the size of the gambling complex that can be built in an area, and based on a report that a Toronto casino can generate up to $1.4 billion in annual revenue, Toronto could receive hosting fees of $20 million. In the past, OLG officials have said that the city could make up to $100 million in hosting fees.
Premier Promises No Preferential Treatment
This week, Ontario Premier, Kathleen Wynne said that she would not approve special terms for Toronto casino hosting fees.
"The hosting formula for Toronto will be the same as the one for other communities," she promised. "All municipalities will be treated fairly so they can all share in the benefits."
Premier Wynn's promises came to appease the cities whose mayors made an official complaint against the OLG CEO's preferential treatment promise to Toronto. The Premier is on a mission to repair the damaged image of the Liberals in rural Ontario after angry communities voted against the party in the 2011 provincial elections. Local farmers felt that the government was ignoring their concerns, and anger was high over wind turbines.
