The City of Windsor will get $11 million to host the casino, according to a new Ontario Lottery and Gaming Corporation hosting fee formula announced Friday.
The $11 million is on top of property taxes of $4.7 million for a total of $15.7 million. This amount is directly tied to Caesars Windsor revenues and will fluctuate.
Windsor Mayor Eddie Francis says the new funding formula is much better than previous one, connecting the city’s revenue directly to the casino’s sales. He is recommending council accept the new formula.
“You have to wake up and measure whether you're better off today then you were yesterday,” says Francis. “Windsor is better off today than yesterday as a result of this arrangement."
Francis is suggesting the money be put into a fund to offset a drop in property assessments in the city.
Until now, Windsor has been receiving a fixed fee of $1.8 million for policing costs and $3 million for revenue sharing, plus a $4.7-million payment in lieu of property tax.
Provincial officials say the new formula will provide more money for host municipalities and will be fair and consistent for all municipalities across the province.
The OLG expects to provide over $50 million more annually to host municipalities by 2017-18.
All host municipalities must sign a new MCA as a legal requirement before receiving hosting payments under the new formula.
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
