Ontario Premier Doug Ford is making the development of Niagara Falls into “Las Vegas North” a priority, renegotiating the province’s deal with casino operators there to encourage more competition and push tourism to the region.
The Ford government is in discussions with Mohegan Gaming and Entertainment and the Ontario Lottery and Gaming Corp. (OLG).
Currently, thanks to an agreement between Mohegan and OLG, Mohegan runs day-to-day operations at the two casinos in Niagara Falls, Fallsview Casino Resort and Casino Niagara. That agreement runs until 2040. OLG receives a share of casino revenues, which are invested in provincial government programs like health care.
Ford said last week it’s his priority to change the agreement to facilitate more development and investment on the casino front in Niagara Falls.
Ford’s announcement was originally published on The Trillium, a Village Media website. Trillium reported that OLG’s evaluation of bids to run the Niagara Falls properties didn’t factor in planned capital investments, according to a 2022 auditor general’s report. The auditor found that a few years into the deal, Mohegan’s revenue projections were reduced.
In a news release sent out Friday, Niagara Falls Mayor Jim Diodati, a big proponent of expanding the number of casinos in his city and opening the market to more competition, voiced concerns over the “cannibalization” within Ontario’s gaming industry.
He told Casinos.com that the current system, with the Ontario government owning the casinos and external operators managing them, deters major investments in upgrades and renovations. Diodati argued for a Las Vegas model, where operators invest in the properties they own to boost economic development.
He added that though a majority of tourism revenue comes from across the U.S. border, the Niagara Falls casinos receive very few American gamblers. Improving casino offerings will lead to growth and drive more American gamblers to the region, Diodati said.
In the Casinos.com story, Niagara Casinos’s president Richard Taylor highlighted over $32 million invested in casino upgrades since 2019, aimed at improving visitor experiences.
