Casino Revenue Is an Advantage Not a Guarantee

Casino Revenue Is an Advantage Not a Guarantee By John Meloche Pickering has something many municipalities would love to have: a significant source of revenue that does not come directly from property taxes. During the Ontario Lottery and Gaming Corporation’s 2025–2026 fiscal year, Pickering received more than $16.3 million in gaming revenue from hosting Pickering Casino Resort. Since the casino opened in July 2021, nearly $76 million had flowed to the City by May 2026. That is an extraordinary financial advantage. The question is what we do with it. Casino revenue has already helped fund recreation facilities, parks, municipal infrastructure, library improvements, fire services and other capital projects. These are legitimate investments, and Pickering should absolutely benefit from having the casino in our community. But there is an important difference between benefiting from extraordinary revenue and becoming dependent on it. Pickering’s long-term capital forecast anticipates drawing significantly on casino reserves in the years ahead. Approximately $96.7 million in casino-reserve-supported capital financing is currently forecast between 2027 and 2035. That deserves our attention. The reason is simple: we control how casino revenue is spent, but we do not control how much casino revenue arrives We are seeing a timely example right now. Workers at Pickering Casino Resort and Casino Ajax began strike action on July 31. The Pickering casino remains open, but some services and operations have been disrupted. Why should taxpayers care? Because Pickering does not receive a guaranteed annual cheque. OLG host-municipality payments are calculated using a formula based on gaming revenue generated at the casino. That means circumstances outside City Hall can affect what we receive. Today it may be a labour dispute. Tomorrow it could be an economic downturn, growing competition, changing consumer habits, further expansion of online gambling and sports betting, regulatory changes, or business decisions made by the casino operator. None of those things are under municipal control. That is why I believe extraordinary revenues should be used primarily to make a municipality financially stronger. If a business suddenly received a substantial new revenue stream that could not be guaranteed indefinitely, the prudent response would not be to immediately build permanent spending around it. You would strengthen the balance sheet. Municipal government should think similarly. Use windfall revenue to repair aging infrastructure before it becomes an emergency. Reduce expensive debt. Strengthen reserves. Make one-time capital investments that provide lasting public value. Fund projects that reduce future operating costs. Wherever possible, use those dollars to prevent future costs from landing on the property-tax bill. What we should be cautious about is creating permanent obligations that eventually have to be transferred to taxpayers if the extraordinary revenue declines. Because once spending becomes permanent, the bill does not disappear when the revenue does. Someone still has to pay it. This does not mean Pickering should stop investing. Quite the opposite. Casino revenue represents an opportunity to leave the city substantially stronger than it would otherwise have been. Ten or fifteen years from now, residents should be able to look around Pickering and clearly see what this extraordinary period of revenue accomplished: infrastructure renewed, debt reduced, reserves strengthened, facilities properly maintained and future tax increases avoided. We should also continue pursuing other responsible non-property-tax revenues — grants, sponsorships, naming rights, film revenues, tourism opportunities and better use of municipal assets. The goal should always be the same. Alternative revenue should reduce taxpayer vulnerability, not simply give government permission to spend more. Pickering Casino Resort has given our city a tremendous financial advantage. Let’s make sure we use that advantage to build resilience for the future. Casino revenue is an opportunity. We should never allow it to become an entitlement.