Ontario seeks $3 billion in casino investment for Niagara region expansion

NIAGARA FALLS · Ontario is seeking private casino operators to invest billions of dollars in the Niagara region. The government and the Ontario Lottery and Gaming Corporation issued a call for investment yesterday, aiming to attract more than $3 billion in direct gaming funding. The plan is the first phase of a multi-billion-dollar strategy to expand the province's land-based casino market. Officials project the development will create over 10,000 construction jobs.

Each new operator must commit a minimum of $1.5 billion and pay a $100 million upfront entrance fee. The province will introduce a 9.75 percent gaming tax rate for these new Niagara casinos, a framework intended to attract global developers. "New gaming investment will bring exciting attractions and experiences to the region, helping drive tourism, create good-paying jobs, and support Niagara’s future as a world-class, year-round destination," said Zee Hamid, Minister of Tourism, Culture and Gaming. The call for proposals is part of the Destination Niagara Strategy, which aims to double regional tourism to more than 25 million annual visitors. The broader strategy is projected to contribute $3 billion annually to Ontario's gross domestic product and generate 46,500 permanent jobs. "Niagara has enormous potential for growth, and our Destination Niagara Strategy is unlocking new opportunities to attract investment, create jobs, and strengthen the region’s tourism economy," Hamid said.

Interested casino operators have until December 3, 2026, to respond to the initial procurement phase. The new regulatory framework will allow for a maximum of three additional casino operators. Any further market expansion will be prohibited for a fixed term of 10 years, after which more licences could be considered based on performance. The province cleared the path for this expansion through an August agreement with the incumbent operator, MGE Niagara Entertainment Inc. That deal suspended MGE's market exclusivity in Niagara. MGE, which is controlled by Mohegan, runs the existing Fallsview Casino Resort and Casino Niagara properties. "OLG is proud to work with our partners and the Ontario government to strengthen Niagara’s position as one of Canada’s premier tourist destinations," said Duncan Hannay, President and CEO of OLG. Under Ontario's commercial model, private operators manage day-to-day casino operations while the OLG retains overall responsibility for gaming in the province. Hannay said the investments would enhance the gaming experience and support new hotels, entertainment and dining.