OLG Pays Non-Tax Gaming Revenue Payments
The Ontario Lottery and Gaming Corporation has recently paid out large sums of money. The OLG pays non-tax gaming revenue payments, and has just paid out the fourth quarter payment covering the months from January through to the end of March 2014.
The amount that the OLG paid out in non-tax gaming revenue payments this time equaled an amount of $19,103,781. The payments were made to 22 different municipalities that all host Ontario Lottery and Gaming facilities. The OLG noted that to date, the municipalities that host OLG facilities have received more than $1 billion in this form of revenue.
Thunder Bay and Sault Ste. Marie Payouts
The City of Sault Ste. Marie has just received its non-tax gaming revenue payment totaling $295,083. In the time that Sault Ste. Marie has been receiving the non-tax gaming revenue payments, the city has received over $22.7 million.
MPP David Orazietti commented on the non-tax gaming revenue payments, noting: "OLG host municipalities invest shared gaming site revenues in important local programs and infrastructure, creating stronger communities. The OLG plays a vital role in the local Sault Ste. Marie economy and in providing well-paying jobs for our community. "Orazietti further commented: "Our government plans on ensuring OLG jobs remain in Sault Ste. Marie."
The City of Thunder Bay received its payment of non-tax gaming revenue to the total of $567,105 at the end of this quarter.
Charles Sousa, the Minister of Finance, also explained that the revenue is used for local programs and more, which results in the creation of more robust communities. He said: "The modernization of Ontario's lottery and gaming business will also result in additional revenues for the province to protect key public services like health care and education."
The Municipality Contribution Agreement
In order that the conditions for the payouts should be clear and fair, the OLG has stated a specific formula by which the gaming facilities are paid out. This formula is set out in the Municipality Contribution Agreement. Under this formula, facilities are awarded non-tax gaming revenue payments according to the slots revenue made at the facility in question. This scale is used across the board in Ontario.
On the first $65 million of slot revenue, facilities receive 5.25%. On the next $135 million of slot revenue, facilities receive 3%. On the following $300 million in slots revenue, the facility will receive 2.5%, and on the following $500 million in slots revenue, the facility gets 0.5%. There is a standard 4% given on table gaming revenue.
