Brantford City Rakes in CA$1.3 Million 3Q Revenue Share for Hosting OLG Casino Brantford

Written By Janice Doughtrey

The City of Brantford recently received a cheque for CA$1.307,627 million from the Ontario Lotteries and Gaming Corporation (OLG), representing the municipality’s share of the 2014 3rd quarter revenue generated by Casino Brantford. The amount received brings the total non-tax revenue earned by Brantford from hosting the OLG-run charity casino since 1999, to over CA$58.8 million.

The quarterly payment is now based on the revised Municipality Contribution Agreement (MCA) that the Ontario government introduced in April. 2013. The MCA replaced the 2012 revenue sharing agreement, which revised the payment formula by adding a four percent (4%) share for casino table game net revenue, on top of the share in slots net revenue. The allocation starts at 5.25 percent (5.25%) on the first CA$65 million net slots revenue, then at 3% on the next CA$135 million, 2.5% on the next CA$300 million and finally 0.5% on net slots revenue above CA$500 million.

The net revenue, on the other hand, is determined after deducting the commissions of the service-provider and the operating and other administrative expenses of the OLG. Upon introduction of the 2013 MCA, the OLG expected that payments to municipalities would reach CA$105 million in 2014, reflecting an increase when compared to the CA$85 million total hosting fees paid for the fiscal year ending March 31, 2013.

According to Brant MPP Dave Levac, Brantford benefits greatly from the revenue generated by OLG’s gaming site, as the city continues to receive financial assistance in supporting and improving the local programs and public services such as for health care and education. Some portions of Casino Brantford’s revenue also go to the Ontario Trillium Foundation and used for problem gambling programs for conducting research, providing treatment, and instituting prevention controls.

Originally established as Brantford Charity Casino, the OLG Casino Brantford currently operates 540 slot machines, with betting options ranging from CA$0.01 to CA$5. It has 55 casino table games in which baccarat, blackjack, “Sic Bo,” roulette, craps, “Let It Ride,” and 3-card poker games are offered as gambling entertainment. In addition, Casino Brantford also has a 14-table Texas Hold ‘Em poker room that holds a Bad Beat Progressive jackpot variant in addition to its daily cash games and tournaments.

Casino Brantford rewards regulars enlisting as Winner’s Circle Rewards members with special amenities, such as cash back credits, gift cards and free slot play on one’s birthday, and complimentary offers for Casino Brantford’s Getaway Restaurant and for sporting and concert events in Ontario.

In 1997, the provincial government of Ontario had announced plans of creating 44 charity casinos. However, due to widespread protests launched by Ontarians opposed to the idea of having a casino in their community, the provincial government proceeded with the plan in 1999 with only four pilot charity casinos. The four comprise the only municipalities that voted in favor of playing host to OLG’s charity casinos, namely Brantford, Point Edward, Sault Ste. Marie, and Thunder Bay. Currently, the OLG has six casinos, to which Casino Thousand Islands and Great Blue Heron Casino became the subsequent additions to the list of government-owned charity gaming sites.