• By: Allen Brown

Casino Revenue Continues to Support Local Budgets Across Ontario 

Casino gaming continued to generate significant funding for local governments across Ontario during the third quarter with the Ontario Lottery and Gaming Corporation (OLG) distributing nearly $32 million in revenue-sharing payments to host municipalities. The funds which cover the period from July to September, were paid to 29 communities under OLG’s long-standing Municipal Contribution Agreement program which allocates a portion of casino gaming revenue to the municipalities where facilities operate. These payments form part of a broader provincial framework designed to balance commercial gaming activity with public benefit.

According to OLG, the Q3 payments totalled approximately $31.9 million. This marks a decrease from the previous quarter when municipal distributions exceeded $37 million. Despite the quarter-over-quarter decline, the latest figures continue a pattern of recurring, non-tax revenue that many municipalities rely on as part of their annual budgeting process. Payments are issued four times a year and are tied directly to gaming activity at land-based casinos across the province, creating a direct link between casino performance and local funding levels.

The revenue-sharing program has been in place since the 1990s and has returned billions of dollars to Ontario communities over the past three decades. For municipalities hosting casinos, the funds are commonly used to support infrastructure, public services and local initiatives helping to offset costs without placing additional pressure on property taxes or other local revenue sources. In many cases, these contributions have become a routine component of municipal financial planning.

How municipalities typically use casino revenue

For many host communities, these payments are used to support essential services and long-term planning, including:

• Infrastructure and capital improvement projects
• Public services such as transit, policing and community facilities
• Local initiatives that help offset operating costs without raising property taxes.

While individual quarterly totals can fluctuate based on casino performance, tourism levels and broader economic conditions, the program has remained a consistent source of funding for host communities. The Q3 results reflect this longer-term stability, even as short-term figures vary and economic pressures continue to affect local governments across the province.

How municipal gaming payments are distributed

Municipal payments are calculated under OLG’s Municipality Contribution Agreement framework, which sets out how gaming revenue is shared between the province and host communities. The structure varies depending on the type of gaming activity and the level of revenue generated at each facility, ensuring payments are aligned with overall casino performance.

Slot machine revenue is shared on a tiered basis, with municipalities receiving a higher percentage on the first portion of revenue generated and progressively smaller percentages as revenue increases beyond set thresholds. Revenue from table games and sportsbooks is shared at a flat rate. This approach is designed to provide host communities with predictable funding while allowing OLG to manage gaming operations at the provincial level in a consistent and regulated manner.

Which municipalities received the highest payments in Q3

As in previous quarters, municipalities hosting Ontario’s largest casino facilities received the highest payments. Toronto, which hosts the Woodbine Casino complex, received more than $6.5 million during Q3, making it the largest recipient for the period. Niagara Falls followed with approximately $3.9 million, reflecting the continued strength of casino tourism in the region. Pickering received close to $3.8 million, while Windsor, home to Caesars Windsor, collected just over $2 million. Ottawa received roughly $1.6 million from its Hard Rock Casino facility.

The distribution of payments reflects differences in casino size, location and visitor volume. Larger urban centres and tourism hubs tend to generate higher gaming revenue, while smaller municipalities receive more modest amounts. Even so, recurring quarterly payments can represent a meaningful contribution to local budgets, especially for communities with limited alternative revenue streams or fewer options for generating non-tax income.

Casino revenue in Ontario’s broader gaming landscape 

While municipal payments are generated by land-based casino operations, public engagement with gaming increasingly extends beyond physical venues. Interest in Ontario casino sites has grown as players look for regulated options online, contributing to a broader gaming ecosystem that includes both in-person and digital platforms. Ontario’s regulated online gambling market generated roughly CA$4 billion in gross gaming revenue in 2025, with nearly $100 billion in total wagers placed on licensed platforms, highlighting the expanding role of digital play in the province’s broader gaming ecosystem.

Within this environment, affiliate resources such as Casino.org play a distinct role. These platforms provide licensed casinos with a digital presence and marketing channel, while also offering players a central place to research, compare, and learn about regulated casino options available in Ontario. By connecting operators with consumers, affiliate sites reflect player demand and participation within the regulated gaming market.

Although affiliate platforms do not directly generate municipal payments, they form part of the wider commercial framework that supports Ontario’s gaming industry. Land-based casinos remain the source of revenue shared with municipalities, but sustained player interest across multiple channels helps underpin the overall performance of the sector.

As Ontario’s gaming market continues to evolve, the OLG’s municipal revenue-sharing program remains a central mechanism linking casino activity to local funding. While quarterly totals may rise or fall, the latest figures continue to provide a stable and ongoing financial contribution to communities across the province.

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