The Ontario government says it expects to make significantly less money from gaming in the current fiscal year than it had previously projected.

In its Fall Economic Statement published on Wednesday, the government said that a key reason for the adjustment in expectations is that Ontarians are spending less on leisure activities and hobbies like gambling or drinking as part of a wider shift in spending habits.

As a result, the government is projecting that its net income from government business enterprises, which includes government-run gaming as well as other businesses such as Liquor Control Board of Ontario (LCBO) revenue, will decrease by $92 million.

“This reflects several factors, including net income from the Ontario Lottery and Gaming Corporation (OLG), which is projected to be lower, primarily driven by economic impacts on consumer discretionary spending,” read a section of the Fall Economic Statement.

The Ontario government receives revenue directly from the profits of the OLG’s operations, as well as in the form of tax revenue from regulated gaming licensed by the Alcohol and Gaming Commission of Ontario (AGCO) and conducted and managed by iGaming Ontario (iGO).

The adjusted outlook for the 2024-25 FY is for the government to make $2.44 billion in net profit from the OLG. That would be slightly up from the final total from 2023-24 but marginally lower than 2022-23 and $186 million less than had been projected in the spring budget.

When it comes to iGO, Ontario expects to see income of $197 million for the year. That would be up from the actual figure of $176 million last year and would also represent an increase from what was initially budgeted for the current year ($174 million).

The Fall Economic Statement also outlined that the government of Ontario intends to make amendments to the Ontario Lottery and Gaming Corporation Act, 1999 to allow it to transfer responsibility for the OLG from the Minister of Finance to the Minister of Tourism, Culture and Gaming. Meanwhile, a proposed new act would continue iGO as a standalone agency, in the manner in which it has operated since being established in 2021.

Government investing in Niagara Falls amid ‘Vegas of the North’ plan

The statement also included limited information on some planned infrastructural investments in and around the Niagara Falls region.

Those include continuing to increase the frequency of GO Transit train service between Toronto’s Union Station and the Niagara Region, as well as specifically increasing the availability of year‐round weekend rail service between Union and Niagara Falls.

The government is also continuing with its Queen Elizabeth Way (QEW) Garden City Skyway Bridge Twinning project, which includes construction of a new bridge over the Welland Canal to connect the City of St. Catharines to the Town of Niagara‐on‐the‐Lake.  The government notes that this section of the highway supports tourism in Niagara Region, improves access to the Niagara District Airport and supports the province’s supply chain by linking the international border crossings at Niagara Falls and Fort Erie with the Greater Golden Horseshoe.

Those planned investments come after new Minister of Tourism, Culture and Gaming Stan Cho said in October that Ontario Premier Doug Ford’s government is looking to transform Niagara Falls into the “Las Vegas of the North.” Ford and Niagara Mayor Jim Diodati both told reporters in October that a change to the Niagara casino landscape is needed if the region is to maximise its gaming potential.

Ford said his provincial government is in talks with the region and casino operator Mohegan Gaming and Entertainment (MGE), which operates both Casino Niagara and Fallsview Casino and has an agreement to run the day-to-day operations of casinos in the Niagara area until 2040. The Ford government wants to revamp that deal to encourage more casinos to open in the city.