Gananoque casino revenue slips again
What was once a financial windfall for Gananoque and the Township of Leeds and the Thousand Islands is no longer the jackpot it used to be.
Casino revenue continues to decline, both in raw figures and real-dollar value, leaving local governments searching for ways to fill a growing gap in infrastructure funding.
The Ontario Lottery and Gaming Corporation (OLG) has issued a fourth-quarter payment of $198,543 to the Town of Gananoque and the Township of Leeds and the Thousand Islands (TLTI) for hosting Shorelines Casino Thousand Islands.
Each municipality received $99,271.50 for the quarter covering January 1 to March 31, 2025.
That brings each community’s total share for the 2024–25 fiscal year to $938,302, a noticeable drop from the $1,145,047 received by each during the previous fiscal year. The year-over-year decline amounts to $206,745 or 18 per cent per municipality.
While the funds still play a vital role in supporting local programs, capital infrastructure, and emergency reserves, the long-term trend paints a more sobering picture.
“The town is very fortunate to receive these funds and they are an integral funding source for the two municipalities,” said Gananoque Mayor John Beddows. “That being said, our share of gaming revenue from the casino has been falling and there is no expectation at this time that we will see a return to historical levels.”
In 2012, Gananoque received the equivalent of $1,818,455.69 in casino revenue when adjusted to 2024 dollars, based on Bank of Canada inflation calculations. This year’s total of $938,302 represents a real-dollar decline of $880,153.69 – a sharp drop in purchasing power.
In practical terms, the funds the town receives from the casino to fund its asset management plan have dropped by $880,153.69 since 2012, an amount the town has make up, said Beddows.
The town allocates 85 per cent of casino revenue to its capital infrastructure reserve, which funds projects outlined in the town’s asset management plan. An additional five per cent goes to the community grant reserve, and another five per cent is placed into a contingency reserve, used for unforeseen capital expenditures not budgeted for annually.
Adding to the financial strain, the casino’s property tax contribution was also reduced in 2023 after the owners of Shorelines Casino Thousand Islands successfully appealed the Municipal Property Assessment Corporation (MPAC) valuation at the Ontario Land Tribunal.
“The outcome of this was a significant, and permanent, net reduction in the property tax paid by the casino, which reduced Gananoque’s share of that revenue as well,” said Beddows.
Despite the challenges, the revenue remains meaningful to both municipalities.
“Shorelines Casino Thousand Islands strengthens our community through sharing gaming revenue that supports local priorities and programs,” Steve Clark, MPP for Leeds-Grenville-Thousand Islands and Rideau Lakes, said in a prepared statement.
“In addition to job creation and community support, the Municipality Contribution Agreement with OLG delivers substantial benefits to Leeds and the Thousand Islands and Gananoque.”
Since the gaming site opened in June 2002, each community has received $33,586,249 in non-tax gaming revenue. OLG says these payments are based on a consistent formula applied to all gaming sites in Ontario, using a graduated scale based on revenue.
Provincewide, host municipalities have received nearly $2.5 billion in non-tax gaming revenue since 1994, officials added.
In addition, over the past nine years, service providers have invested more than $2.5 billion in private capital across Ontario’s gaming industry, including new casinos, resort development, and expanded amenities.