The Town of Innisfil found it profitable to host the OLG slots at Georgian Downs racetrack.
Over the years, the town’s share of gaming revenues has totalled over $88 million – non-tax dollars that have been earmarked for capital projects like the Innisfil Recreation Complex, and Innisfil Town Hall.
In the four quarters of 2019-2020 alone, after Gateway Casinos added table games to their 1000 slot machines as part of the modernization of gaming in Ontario, Innisfil received over $6.25 million.
But the fourth quarter payment of $972,983, covering the period from Jan.-March of this year, was the last cheque the town has received. In mid-March, the COVID-19 pandemic forced the closure of all casinos, and so far, there are no signs that they will be reopening any time soon.
The Town of Innisfil is prepared to deal with the loss of the Alternate Revenue stream from OLG, said Treasurer Audrey Webb.
“We take the best financial practice here and do not rely on these funds for operating purposes,” Webb noted. “We have always understood the risk that could be involved and therefore dedicate OLG funds for capital purposes or one-time strategic operating initiatives.”
She acknowledged that there could be a long-term impact on capital projects, should the casino remain shuttered, but noted that there will be no impact on 2020 projects.
“As it stands, the OLG Reserve Fund has a healthy balance,” Webb said. “We have approximately $7 million in this fund.”
Most projects – including the planned Town Square at the Lakeshore Library in Alcona, and the Innisfil Beach Park master plan – are growth-related, and funded through Development Charges levied on new development.
Those revenues have also been impacted by COVID-19.
“With COVID, we have seen a slowing down in growth and DC revenues,” Webb said, acknowledging that there will likely be an impact, from both lost OLG revenues and slower growth, on the 2021/2022 budget now in development.
“Staff will be providing council with information about the town’s financial position so we can receive direction and have that important discussion as we build and deliver a fiscally-responsible budget,” she said, noting that Council’s position has been that financial sustainability is key.
“We will adjust and defer capital projects, if needed, to keep us in a good financial position.”
The Town of Innisfil has already introduced a 1 percent Special Capital Levy on the property tax, to reduce reliance on the OLG funds. Should the Gateway Casino in Innisfil not reopen, Webb said, “the town would re-evaluate and work with council to adjust our capital program to ensure the financial health of the Town.”
Innisfil Mayor Lynn Dollin has been in contact with OLG and other host municipalities, looking into reopening plans for casinos and ways to mitigate the impacts on the communities.
Robert Mitchell, Director of Communications and Public Affairs with Gateway Casinos & Entertainment Ltd., has confirmed hat there is “no set timeline for reopening any Gateway locations.”
In addition to Gateway Casino Innisfil, the company operates nine other locations in Ontario, including Orillia, Sault Ste. Marie, London and Rama.
