Ontario Targets $3B in Niagara Casino Expansion as Market Opens to New Operators

The Ontario government and the Ontario Lottery and Gaming Corporation (OLG) have launched the first phase of a multi-billion-dollar investment strategy for the Niagara Region, inviting new operators to expand the province’s land-based casino market.

Yesterday’s (Oct. 28) Call for Investment is aimed at attracting more than CA$3bn ($2.1bn) in direct gaming investment and more than CA$600m ($429m) in additional private sector investment across different components of the province’s Destination Niagara Strategy over the next 20 years.

The government projects more than 10,000 construction jobs from the gaming expansion.

Niagara Tourism Growth Targets

The overarching Destination Niagara Strategy aims to double regional tourism to more than 25 million annual visitors, contribute CA$3bn annually to Ontario’s GDP, support local businesses, and generate 46,500 permanent jobs.

“Niagara has enormous potential for growth, and our Destination Niagara Strategy is unlocking new opportunities to attract investment, create jobs, and strengthen the region’s tourism economy,” said Zee Hamid, Minister of Tourism, Culture and Gaming.

“New gaming investment will bring exciting attractions and experiences to the region, helping drive tourism, create good-paying jobs, and support Niagara’s future as a world-class, year-round destination.”

Operator Investment & Tax Requirements

Under the proposal terms, each new operator must commit a minimum investment of CA$1.5bn ($1.07bn) and pay a CA$100m ($71m) upfront entrance fee.

To support development, the province will introduce a 9.75% gaming tax rate for new Niagara casino operators—establishing a framework designed to reduce burdens on operators, attract top-tier global developers, and preserve public interest safeguards.

Interested casino operators have until Dec. 3, 2026, to respond to the initial procurement phase on MERX. Shortlisted applicants will then be invited to submit detailed proposals for integrated resort developments.

Market Structure & Initial Cap

The new framework will initially accommodate a maximum of three additional casino operators. Further market expansion will be locked for a 10-year fixed term, after which additional licenses may be considered based on market performance and prevailing conditions.

The province paved the way for new developers through an August agreement between the OLG and incumbent operator MGE Niagara Entertainment Inc. (MGE) to formally suspend MGE’s market exclusivity in Niagara.

Background: Mohegan Exclusivity

MGE, controlled by Mohegan, currently operates Niagara Falls’ two existing properties: Fallsview Casino Resort and Casino Niagara.

Under Ontario’s commercial model, private operators manage day-to-day land-based operations while the OLG retains overarching responsibility for conducting and managing gaming in the province.

“OLG is proud to work with our partners and the Ontario government to strengthen Niagara’s position as one of Canada’s premier tourist destinations,” said Duncan Hannay, President and CEO of OLG.

“By enhancing the gaming experience and supporting new investments in hotels, entertainment venues, and dining, we are helping create lasting economic benefits while amplifying the great experiences already available at Fallsview and Casino Niagara.”