On June 18, Connecticut-based Mohegan Gaming and Entertainment will assume control of the “Niagara Bundle”—Casino Niagara and Fallsview Casino Resort—in Ontario, Canada. MGE was selected by the Ontario Lottery Corporation following a competitive bidding process last year. The casinos are the towns’ largest employers, with a 4,000-person workforce.
MGE Chief Executive Officer Mario Kontomerkos said managing the bundle is “the next stage of our international expansion.” He said MGE plans to invest “several hundred million” in the properties.
Under the terms of the deal, MGE will lease the properties from the OLC for 21 years. MGE will pay an annual tax to the province in return for receiving the casino revenue. MGE will be responsible for all marketing, updating and expansion costs at the properties. The deal also includes a 5,000-seat entertainment center near the Fallsview Casino, expected to open this summer. MGE will manage and book events for the center.
Ontario announced in 2016 it would privatize several state-owned casinos, bundle by bundle, to generate increased revenue. MGE beat out Hard Rock International and Caesars Entertainment to win the contract. Kontomerkos said the casinos already are a top destination, attracting 12.7 million visitors a year, “and they’ve never had anyone with MGE’s marketing expertise helping them. It’s a very exciting opportunity for us.”
The Niagara Bundle will compete with the Seneca Nation’s Seneca Niagara located in Niagara Falls, New York. The tribe has stopped making its $12 million annual contributions to the state government over a disagreement about revenue sharing payments.
In Niagara Falls, Ontario, which is doing better economically than its U.S. counterpart, officials have expressed concerns about whether casino jobs will be protected after privatization, or whether staff will be trimmed for increased efficiency and revenue.
Besides the Mohegan Sun casinos in Connecticut and Pennsylvania, MGE soon will start construction of a $1.6 billion project in Incheon, South Korea, and also is said to be considering entering the emerging gaming market in Japan.
In another Canada-based story, Gateway Casinos & Entertainment announced it will invest about $31 million to build the new Cascades Casino North Bay and create up to 300 new jobs in the City of North Bay, Canada.
The proposed new casino, spanning over 39,000 square feet, will feature 300 slots and eight live table games. It will also be home to Gateway’s signature restaurant brands, MATCH Eatery & Public House and The Buffet. The new casino is expected to open in mid-July 2020, according to CDC Gaming Reports.
“Gateway is delighted to be coming to the City of North Bay. We are proud to be one more reason to make this city your entertainment destination,” said Carrie Kormos, chief marketing and communications officer for Gateway Ontario in a press release. “This is the first time Gateway has put shovels in the ground in northern Ontario and we are very excited to be offering the citizens of North Bay a new and exciting entertainment and dining experience in their city. Today’s investment of $31 million will not only create 300 new jobs in North Bay, but will also provide millions in economic spin-offs throughout construction and with locally sourced goods and services when completed.”
