In Q2 of the current fiscal year (July 1 – September 30 2025) the Ontario Lottery and Gaming Corporation (OLG) has announced that it has paid out $37,765,676 CAD to 29 communities in the province that host land-based gaming facilities.


In a show of continued support for these local areas and their communities, the recent payments have been made as part of OLG’s Municipality Contribution Agreement, which aims to ensure that local economies experience a direct benefit from the financial activity generated by their casino venues and other brick-and-mortar gambling destinations.


To understand the implications of this fascinating agreement, we’ve examined this second-quarter payout in more detail, including what this means for the communities in these areas and the status of the wider gambling sector in Ontario today.


What is the reasoning behind these payouts?


Through reinvesting revenue generated by OLG gaming sites directly into local projects, the Municipality Contribution Agreement aims to improve the quality of life of local residents and ensure that communities reap the benefits of their nearby gaming establishments. So far in this financial year alone, over 29 different communities in Ontario have received $81,399,887, demonstrating the considerable impact of these gambling venues on the surrounding economy.


The money is allotted based on a specific formula using a graduated scale, as set out in the agreement, and is applied across all land-based casino sites in Ontario. Municipalities are given 5.25% on the first $65 million of slot revenue, 3.0% on the next $135 million, 2.5% on the next $300 million, and then 0.5% on slot revenue above $500 million. Additionally, if applicable, they are paid another 4% of table game revenue and 4% of sportsbook revenue.


Through this reliable source of local income, OLG aims to support these communities and increase overall economic stimulus throughout the province of Ontario today.


What do the recent figures tell us about Ontario’s gambling industry?


The OLG’s recent payout to communities in Ontario paints an interesting picture of the industry today. The Q2 payout is slightly lower than the amount paid out in Q1 of the same fiscal year, which was recorded at $43,634,211 CAD. This demonstrates a slightly slower second quarter, and shows how gaming revenue can be somewhat variable at different times of the year.


However, whilst the overall amount of revenue does fluctuate over time, it is clear that contributions from the gambling industry have had an enormous impact on the overall economy of Ontario over the years. Since the first casino opened in Ontario all the way back in 1994, host municipalities have collectively received nearly $2.3 billion in non-tax gaming revenues, highlighting the longstanding and important role that these gaming facilities continue to play within the wider provincial economy.


These vital entertainment centers create jobs for local people and provide impressive amounts of funding for local projects, and their impact will undoubtedly be seen across Ontario for many years to come.


The impact of the gambling industry on the province’s economic outlook is even larger when considered alongside the ongoing and increasingly important role of Ontario’s regulated and legal iGaming market. With local players now able to access an online casino in Ontario ever since the market opened back in April 2022, this thriving online entertainment scene has had an enormous impact on gaming revenue and has strongly influenced the overall economy in the province.


The iGaming scene is showing consistent and strong growth, with revenue hitting an impressive $3.2 billion in FY 2024-25, and the popularity of this activity shows no sign of slowing down. Whilst some have expressed concerns about the possible impact on brick-and-mortar gaming establishments, the recent revenue figures and payouts by OLG show that the in-person gambling industry has maintained a solid presence on the wider scene in the province today.


Evidently, these two different gaming styles may be able to work in tandem to generate significant economic stimulus and provide much-needed funding and job creation across Ontario, for many more years to come.


What does this mean for local communities in the province today?


As the wider gambling and iGaming industry continues to expand in Ontario, these significant quarterly payments are having a major impact on the overall local economy in many communities in the province today. These regular and considerable amounts of vital cash provide a reliable source of funding for local community projects and infrastructure, giving these areas a much-needed boost in the current turbulent and unpredictable economic landscape.


OLG funding goes directly to local community ventures, including parks, libraries, and recreation centers, where it’s often needed the most. The revenue has also regularly been used to fund community programs, including projects for Ontarian young people, arts projects and cultural events, and vital social services.


OLG has stated that it is proud to share the proceeds of casino gaming with local communities, contributing to economic development through better infrastructure, increased tourism, and job creation. According to OLG, these payments are part of the company’s commitment to Ontario, which includes reinvesting 100% of OLG’s profits back into the economy so that residents can directly see the benefits.


In conclusion, it’s clear that OLG’s recent second-quarter payout of over $37 million demonstrates the continued and vital role that these land-based gaming establishments play in supporting Ontario communities and boosting local economies. Whilst these quarterly totals will naturally fluctuate over the years, these significant and reliable contributions are able to provide local areas with an impressive amount of vital funding that helps to fund much-needed services, infrastructure, and community projects.


The commitment made by OLG aims to reinforce the relationship between gaming operators and their host communities, and to ensure that local people reap the rewards of the revenue generated by these popular casinos and gaming venues. Evidently, the Municipality Contribution Agreement has been able to reinforce the continued partnership between gaming operators and their host communities, ensuring that these areas can experience the economic benefits of gaming activity and have access to a vital and long-lasting economic boost.