Published: October 4, 2012 03:48 pm EDT
The City of Ottawa has released the details of the Ontario Lottery and Gaming Corp.'s revenue-sharing formula, which will be put into place for the casino expansion which the city is still mulling.
According to a report by the Ottawa Sun, the revenue-sharing formula is as follows:
- The city will receive 5.25 per cent on the first $65 million on 'net' slot revenue
- The city will then receive 3 per cent on the next $125 million on net slot revenue
- The city will then receive 2.5 per cent on the next $300 million on net slot revenue
- The city will then receive 0.5 per cent on all additional net slot revenue
The OLG formula also states that the host municipality will not receive a cut from revenues generated at table games.
According to the OLG, Ottawa can expect to receive $5.6 million from the new formula. The city received $4.381 in revenue from the existing formula in 2011.
(With files from the Ottawa Sun)
In reply to Remember "ä bird in the hand by F Lester
The OLG have had the green
The OLG have had the green light for table games at RCR for well over a year now. The city passed a by-law allowing them. This was spearheaded by former Ottawa Mayor and now local Liberal MPP Bob Chiarelli. It is estimated that one blackjack table will take in over 10 million dollars a year in profit.
Big question is why have they not been brought in table games by now at RCR.
Or are they waiting to bring them in after to make themselves look good ?
Remember "ä bird in the hand
Remember "ä bird in the hand is worth two in the bush "
As Paul has stated, these are
As Paul has stated, these are projected numbers only and they can be manipulated to look good now but change significantly if and when the OLG gets their casino. Comparable to politicians who promise the moon before they are elected and renege after getting into power. Dalton's notorious for that. What makes these city officials and the people of Ottawa think that this will turn out any differently? The horse people all know that they aren't to be trusted. The citizens of Ontario should know that McGuinty and company are nothing but liars and cheats after more the 40 plus scandals that he has been involved in since his rise to power.
Apparently, the teachers have voted to strike. Of course, Dalton has outlawed that so they will be on a work-to-rule. Could be an interesting development there.
There is a fallacy in this
There is a fallacy in this deal as there needs to be a clear definition of what constitutes "net slot revenue". The city will be suckered in on this deal and remember these income numbers are projected only. Naturally, the OLG is going to inflate the numbers as an enticement. Read the Annual OLG Financial Report which indicates that revenue from resort casinos is down by $45.8 million and SAR is up by $29 million. Is the OLG going to finance this project like they did Caesars in Windsor at a cost of $226 million plus or will they dump that on the city of Ottawa? RCR and SAR are already in place and according to their numbers, it makes money for all parties including the city. Mike Smith is right in saying that this is a sucker proposal. Sometimes.... "a bird in hand is better than two in the bush."
THERE WILL BE NO NET, NET,NET
THERE WILL BE NO NET, NET,NET REVENUE AFTER EXPENSES, just watch. ( Some people are personnally PROFITING from these agreements. This is a MOB run gouvernment, and to the MAYOR of Ottawa, don't spend all your net profits?????? in the same place and be kind to all the unemployed and welfare recepients.and shame on you for helping destroy a proven profitable (SAR) operation. Have a good day.(OPS) once again, I said it before and I will say it again, look at what GREED GREED DOES TO SOME PEOPLE.
Shame on the city of Ottawa!
Shame on the city of Ottawa! Given time we will all see what a monumental mistake this is.
So the city of Ottawa is to
So the city of Ottawa is to expect a million dollar raise based on OLGs new formula in comparison to the SARP at Rideau raceway....well let's hope if they do support an urban casino the city can replenish all the local jobs and investment lost in their rural sector to help make up for the loss of an industry that support huge economic and social impacts that already benefit that municipality... Is the price really worth it when so many jobs are at stake and this OLG deal truly only benefits a select few? This is a government agency....somebody reign them in!
Of course, if the new formula
Of course, if the new formula is applied to RCR, the return to the community is also 5.6 million. So the community assumes 100% of the added risks that go with a casino and receive 0% of the added revenues. In fact, if the casino struggles against Lac Leamy and the racing junkets from Montreal stop, the city could quite possibly end up with less money. This really is a sucker bet for Ottawa. Toronto will just jump at this arrangement.Yeah, right.
I would like to see the
I would like to see the people of Ottawa insist that they get the 5.6 million up front.
Of Course ,they had to come
Of Course ,they had to come up with a number that looks a little better than last year - can you really trust them ? I would bet that most of the gamblers who frequent the slots at Rideau will head to Quebec after their closed and Ottawa will likely end up with LESS than their current take.